Mayor Mufi Hannemann painted an optimistic picture of Oahu's economy yesterday in contrast to the run in financial markets after Congress' failure to pass a bailout measure.

“;We've seen too much gloom and doom in our community,”; Hannemann said yesterday in his Honolulu Hale office. “;We're in pretty good shape here in Oahu. Let's not worry so much about what's happening on Wall Street. Let's focus on Main Street in Honolulu.”;

Hannemann, who is seeking re-election this year, outlined his economic plan, calling it “;Job Focus Honolulu,”; on his initiatives to bolster the economy.

Hannemann acknowledged the state's declining tourism industry and said upcoming projects - such as three major housing developments in Kapolei - and his proposed $4 billion rail transit system could help stimulate the state's economy by bringing in thousands of jobs.

But Hannemann's opponent for mayor, City Councilwoman Ann Kobayashi, said the downturn in the economy could affect the planned rail-transit system.

Kobayashi, who favors a rubber-tire bus system over steel rail, said she remains doubtful that the city would receive $900 million, as promised by a top-ranking congressional member several months ago, with the current economic situation.

“;We'll have to increase property taxes to maintain the rail,”; Kobayashi said. “;I'm very worried about the economy. Things are not going to be great for a while. It's going to affect tourism, the general excise tax and the transit fund. We're going to have to tighten our spending.”;

Hannemann said operating and maintaining the rail-transit system annually will cost about $35 million to $40 million - a small percentage of the city's budget. “;That's not going to break our budget,”; Hannemann said. “;That's not going to make us raise property taxes.”;

Hannemann's comments yesterday differed from statements he made on the economy several weeks ago. As large national financial companies began failing, Hannemann warned about the declining economy and said he would be the best mayoral candidate because he has on-the-job experience tackling economic problems.

Hannemann left last night for Miami to attend a meeting of the U.S. Conference of Mayors, which will include efforts to boost tourism by helping the airline industry fight high fuel costs.

At the news conference yesterday filled with people with West Oahu ties, Hannemann also signed three zoning bills into law that allow for major developments in Kapolei. Collectively, the Makaiwa Hills, Kapolei West and Kapolei Harborside developments are expected to create 7,500 permanent jobs and an average of about 1,500 annual construction jobs.

“;I think this is a time when city government and state government need to be enablers,”; said City Councilman Todd Apo, who represents West Oahu. “;We can't ignore what's happening on the national front and we can figure out what to do to help the people of Hawaii.”;