Poipu Development - Kukui'ula Update

Wednesday, May 27, 2009, 7:53am HAST | Modified: Wednesday, May 27, 2009, 12:00pm
A&B increases ownership at Kauai development
Pacific Business News (Honolulu)

Alexander & Baldwin is increasing its ownership stake in Kukuiula, a luxury golf and vacation home development under construction on the south shore of Kauai.

The company (NYSE: ALEX), through its subsidiary KDC, LLC, and DMB Associates, the company’s co-developer at Kukuiula, will collectively invest $165 million over the next three years to finish the recreational amenities at the luxury home development just outside Koloa.

The 18-hole Tom Weiskopf championship golf course, resident club, restaurant, golf clubhouse and spa are scheduled to be completed by the end of 2010. The recession has slowed vacation home and lot sales to a trickle and in A&B's most recent quarterly report, filed May 5, it said the company "has very modest expectations of residential unit sales for the coming year."

While A&B didn't say why it was increasing its stake, its Scottsdale, Ariz-based partner is clearly under financial pressure because of the real estate meltdown, which has hit Arizona especially hard.

“The original vision for Kauai’s ‘Living Garden’ continues to be realized,” said Stanley Kuriyama, president of Alexander & Baldwin, in a statement. “This new opportunity to invest strengthens our partnership with DMB, and importantly allows us to complete our resort amenities and continue to move forward with the entire project, while building long-term value at Kukuiula. By increasing our ownership and investment in the project, A&B also reinforces its long-standing commitment to Hawaii and to the residents of Kauai. This investment allows for the completion of what we believe will truly be one of Hawaii’s outstanding resort communities, and will position us to capture rising buyer demand as the economy and real estate markets recover.”

Essence of Kauai

May Day 2009, Koloa, Kauai

Koloa Elementary School May Day 2009

A tradition that started back in 1928 as a way to encourage people to wear and celebrate lei. The tradition turned into an annual celebration that is especially promoted at every school in the Hawaiian Islands. A May Day king and queen and it’s court are chosen from among the school children to reign over the festivities. The court consists of an island princess and her kahili bearer that represent each of the 8 hawaiian islands. The remaining school children then perform Hawaiian songs and dances, usually by class, in honor of the May Day celebration. Yesterday, Koloa Elementary school held their annual May Day celebration, and I am always honored when they ask me to emcee and help out with the music.

First Time Homebuyer Tax Credit

First-Time Homebuyer Credit Questions and Answers: Basic Information

Q. What is the credit? A. The first-time homebuyer credit is a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period. The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home ceases to be your principal residence within the 36-month period beginning on the purchase date. Q. How much is the credit? A. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more. Q. Which home purchases qualify for the first-time homebuyer credit? A. Any home purchased as the taxpayer’s principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before Dec. 1, 2009, to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home. Taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return. Q. Can I apply for the credit if I bought a vacation home or rental property? A. No. Vacation homes and rental property do not qualify for this credit. Q. Who is considered to be a first-time homebuyer? A. Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase. Q. When do I have to buy a new home to get the credit? A. The home must be purchased after April 8, 2008, and before Dec. 1, 2009, in order to obtain the credit. For a home you construct, the purchase date is considered to be the date you first occupy the home. Q. How do I apply for the credit? A. The credit is claimed on new IRS Form 5405, First-Time Homebuer Credit, and filed with your 2008 or 2009 federal income tax return. Q. Are there income limits? A. Yes. The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less. Q. I purchased a home that qualifies for the first-time homebuyer credit. I will be renting two of the bedrooms and reporting the rental income on Schedule E. Will I still qualify for the credit if I use the home as my principal residence? A. Yes, if you meet all first-time homebuyer eligibility requirements. See Form 5405, First-Time Homebuyer Credit, for more details. Q. If two unmarried people buy a house together, how do they determine how much each may take of the credit? A. IRS Notice 2009-12 provides guidance for allocating the first-time homebuyer credit between taxpayers who are not married. Q. I am a single co-owner of a home. How do I get this credit? A. Depending on the year of purchase, you will claim the credit on either your 2008 or 2009 federal income tax return. Q. I don’t owe taxes and/or my income is exempt from tax and I do not have a filing requirement. Do I qualify for the credit? A. The credit is fully refundable and, if you qualify as a first-time homebuyer, having tax-exempt income will not preclude eligibility. Although there are maximum income limits for qualifying first-time homebuyers, there are no minimum income criteria. Thus, someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund. Per www.irs.gov Updated as of May 7, 2009

Bodyboarding vs Blogging

And this is my other son, Kyle. Since my body can't do stuff like this anymore, I guess I'll have to stick to blogging. Mahalo to Freesurfpix for the footage.

I'm busy at Kiahuna

10th Hole Birdie putt

2 birdies, countless missed opportunies. Now I know how Tiger Woods feels like at the TPC!!! However, it's a beautiful Kauai day at the Kiahuna Golf Course.

Tim's values....

Tim is a member of Kauai Bible Church. He and Lynn celebrated their 28th wedding anniversary in 2012. They have two adult sons. Tim is persevering without a fault, he strives for honesty, and regards his island home with high respect. 

Tim’s understanding of Kauai rental properties

Having been a landlord himself, Tim understands the responsibilities and expectations of owning a rental property on Kauai. 

Tim’s insights about Poipu developments….

Interested in Poipu development properties? Tim is currently a Sales Executive with Koloa Landing, and has previously worked as a Sales Executive for Kukui’ula and Wainani at Poipu.

Working for these 3 recent major Poipu developements has  provided him with valuable  and comparative inside knowledge about these Poipu developments.

Tim’s lifestyle….

While real estate is Tim’s full time work, he will gladly engage in a game or two …or three... of golf, with anyone, on any of Kauai’s prestigious courses. Tim also enjoys Stand Up Paddleboarding as a way to unwind after a full day of work.  He also enjoys biking with his golden retriever, Kupa, and taking back road walks with his wife, Lynn.  A professional musician, you will find Tim behind the drums with the worship team every Sunday.

Tim’s Real Estate experience….

Tim started his RE career in the down market of late 2006 and immediately placed in the top 25% for sales on Kauai in 2008.  He credits that to training under the guide of 2 of Kauai’s top producing agents.  In 2010, Tim ranked #6 in sales volume for the areas from Poipu to Kekaha (south to west Kauai).  

Tim's knowledge about Kauai....

Born and raised on Kauai, Tim is highly qualified to share “insider” knowledge about his island home. His lifelong understanding of Kauai’s diverse natural features, various microclimates and multi faceted culture enables him to best communicate the island’s features to his clients.

Beautiful Sunny Kauai days are back

The winds and rains have finally subsided and our beautiful sunny Kauai days are back. Just in time for summer vacations.