AGP Executive Report

Native Hawaiian Housing: OHA and DHHL signed a tentative agreement to develop OHA land in Kakaʻako Makai, with plans for about 450 homes for DHHL beneficiaries and commercial space for OHA. Rail Spending: HART is advancing a proposed $651.8 million FY2028 budget, but review of possible Skyline extensions—estimated at $4.2 billion to $4.8 billion—was pushed to November. Business Investment: Amazon’s planned $500 million investment in Kapolei puts the area’s data-center growth in focus. Banking: First Hawaiian reported third-quarter net income of $63.7 million; deposits rose, while commercial real estate losses and downgrades drove a larger provision for credit losses. Jobs: Hawaiʻi’s unemployment rate reached 2.8%, a two-year high. Lahaina Recovery: ʻUlu o Lele marketplace is set to open Nov. 10, giving local businesses a place to return to Front Street.

Banking: First Hawaiian reported third-quarter net income of $63.7 million. Loans fell $115 million from the prior quarter, while provisions for credit losses rose to $20.3 million amid commercial real estate concerns; the bank lowered its full-year loan growth outlook to 1%–2%. Investment: Amazon’s Kapolei fulfillment center is moving ahead, with seven permit applications totaling more than $580 million for a five-story complex planned to span nearly 3 million square feet. Lahaina Recovery: ʻUlu o Lele opens Nov. 10 at the former Outlets of Maui site, giving local businesses affected by the 2023 wildfire a chance to reopen in town. Jobs: Hawaiʻi’s unemployment rate reached 2.8%, a two-year high. Tourism: Alaska Air says Hawaiʻi weighed on its 2026 results but expects conditions to improve next year.

Jobs: Hawaiʻi’s unemployment rate rose to 2.8% in September, its highest in two years. The labor force reached 694,900, growing faster than employment. Housing: A $1-billion plan to redevelop Mayor Wright Homes calls for 2,448 apartments across 10 towers; construction has begun on the first 308-unit tower, a $260-million project. Rail: Honolulu officials are weighing extensions to Ala Moana and Kapolei costing up to $4.8 billion, but have yet to identify funding. Utility Costs: Hawaiian Electric is seeking a revenue increase affecting customers on five islands; a rescheduled Hilo hearing is set for Nov. 4. Business Savings: The state’s new Climate Rebate Finder gathers incentives for local businesses and nonprofits upgrading equipment, lighting, water systems and transportation. Agriculture: Hawaiʻi received nearly $400,000 in federal funding for pesticide enforcement.

Food Costs: Honolulu egg prices have topped $10 a dozen, with local organic eggs averaging $13.19, according to state data collected in the spring. Mainland-imported eggs averaged $7.87. Small-Business Funding: Hawaiʻi entrepreneurs can connect with federal agencies and explore research funding at the Hawaiʻi SBIR Conference on Maui Nov. 6, with a focus on space-sector opportunities. Business Security: State officials warn vendors about scam emails impersonating government agencies and demanding payments or login details. Jobs and Tourism: Hawaiʻi’s September unemployment rate was 2.8%, while Maui’s reached 3.1%. Alaska Air says Hawaiʻi weighed on its 2026 results but expects conditions to improve next year. Utility Costs: The PUC has rescheduled its Hilo hearing on Hawaiian Electric’s rate case to Nov. 4, with a public meeting on service reliability to follow.

Airlines: Alaska Air says Hawaiʻi weighed on 2026 results, but sees improving conditions next year as capacity growth slows and operational integration advances. The airline also plans new Seattle–Osaka and Seattle–Tahiti service with Hawaiian Airlines in 2027. Housing: Hawaiʻi County postponed until July 2027 a rezoning decision for a proposed Waikōloa project with 400 apartments and 300 homes, delaying a major housing proposal amid local cost-of-living pressures. Small Business: Kaimuki Dry Goods, a neighborhood fabric shop operating since 1926, will close Dec. 15; its owner cited tariffs and rising costs. Utilities: The PUC moved the Hilo hearing on Hawaiian Electric’s rate case to Nov. 4, with a public meeting on service reliability to follow. Household Costs: Honolulu local egg prices climbed more than 11% in a year to $10.06 a dozen, while mainland eggs averaged $7.87. Investment: EPA approved a $109 million loan for a Honolulu seawater desalination plant, while retail investor Benderson acquired a 130,000-square-foot Honolulu property, expanding its presence in Hawaiʻi.

Utility Costs: The PUC moved its Hilo hearing on Hawaiian Electric’s rate-rebasing request to Nov. 4; a public meeting on service reliability will follow. Food Costs: Honolulu eggs averaged $10.06 a dozen in June, up 11% year over year, versus a little over 1% on the mainland. Infrastructure: Honolulu’s $109 million federal loan fully funds its desalination project, while Consolidated Water advances permitting for a Kalaeloa plant. Housing: Work on roads and utilities has begun for an affordable housing project in Waimea. Business Costs: Hawaii employers face double-digit health insurance rate hikes affecting about 500,000 residents. Growth: A Hawaii-linked operator signed a deal to develop 52 Hawaiian Bros restaurants in Florida, with 24 planned over the next three years. Alaska and Hawaiian Airlines also plan new nonstop Seattle routes to Osaka and Tahiti in 2027.

Water Infrastructure: Consolidated Water has cleared key historic-preservation and health approvals for Oʻahu’s Kalaeloa desalination project, but other permits remain outstanding, pushing construction to the first half of 2027. The Board of Water Supply has authorized $6 million for early equipment purchases; a separate $109 million EPA loan will fund the plant. Housing: Waimea’s 440-acre Koaiʻe project is moving ahead, with $8.8 million in road and utility work set to begin in November and 39 self-help homes planned in its first phase. Meanwhile, a study finds Hawaii homebuyers need $118,907 more annual income than five years ago to afford a typical home. Local Costs: Honolulu’s average price for a dozen conventional eggs reached $10.06 in the second quarter, up 11.3% from a year earlier. Air Links: Alaska and Hawaiian Airlines plan new nonstop Seattle flights to Osaka and Tahiti in 2027, expanding international connections. Business Districts: Hawaiʻi County Council members delayed a proposal for up to $1 million a year in grants to restore storefronts and bring vacant commercial spaces back into use.

Cost of Living: Honolulu egg prices rose 11% year over year to $10.06 a dozen, while local organic eggs jumped 22% between the first and second quarters to $13.19. Air Travel: Alaska and Hawaiian Airlines will launch nonstop Seattle–Osaka and Seattle–Tahiti flights in 2027, using Hawaiian A330s and expanding the combined network’s reach. Health Costs: Hawaiʻi employers face double-digit insurance rate hikes affecting about 500,000 residents, adding pressure on businesses and households. Tourism: Statewide hotel gains are masking a sharp downturn in Kauaʻi visits after Hurricane Lowell. Agriculture: Severe weather is driving mounting losses for Hawaiʻi farmers, while residents and businesses affected by the South Kona quake have two more weeks to seek federal aid. Investment and Infrastructure: Benderson Development has entered Hawaiʻi with its acquisition of a 130,000-square-foot Honolulu retail property; meanwhile, a $109 million EPA loan will fund Honolulu’s seawater desalination plant.

Business Costs: HMSA health premiums are rising about 10% for roughly 500,000 residents, adding pressure on employers already struggling with Hawaiʻi’s high operating costs. Tourism: September hotel revenue rose statewide, but the gains masked a sharp divide: Kauaʻi revenue plunged 40.7% after Hurricane Lowell, while Maui’s climbed nearly 21%; statewide occupancy was flat as room rates lifted revenue. Agriculture: Storm damage is threatening farms across the islands. The Kona Lows caused an estimated $50 million in losses, and damage from two hurricanes could push the total toward $100 million. Federal Contracts: A ProPublica investigation says Hawaiʻi defense contractor Navatek’s CEO described a bribery scheme involving lawmakers and federal contracts; the FBI probe went quiet after the Trump administration’s purge of the bureau. Investment: Honolulu’s Board of Water Supply secured a $109 million EPA loan for an Oʻahu desalination plant, while UH Mānoa will help lead a new coffee and cacao research lab backed by a $40 million grant.

Business Cost Relief: Hawaiʻi launched a Climate Rebate Finder to help households and local businesses find incentives for upgrades, including efficient water systems, lighting, HVAC and clean transportation. Labor Market: The state’s September unemployment rate edged up to 2.8% from 2.7% in August, while Maui County’s rose to 3.1%; statewide jobs were up 400 from a year earlier. Shipping Investment: Matson christened the first vessel in a $1 billion shipyard order, a milestone for the carrier’s fleet expansion. Local Innovation: The University of Hawaiʻi will receive a $40 million grant to help boost coffee and cacao production through a new research lab. Business Operations: Hawaiʻi firms with fourth-quarter filing dates have until Dec. 31 to submit annual reports; the state also launched email status updates for professional license applicants.

Agriculture: Maui farm company Mahi Pono plans to plant avocados on 1,000 acres, targeting an initial harvest within five years and more than 10 million pounds annually once orchards mature. Tourism: Repairs at the Hawai‘i Convention Center, now estimated at $108.7 million, may face further delays and cost increases after crews uncovered unexpected conditions; officials expect to clarify the schedule and costs by month’s end. Higher Education: The University of Hawai‘i plans to invest $123 million across its 10-campus system over the next two to three years, directing funds toward student success, workforce shortages and operational upgrades. Water Infrastructure: Honolulu’s Board of Water Supply secured a $109 million EPA loan for an O‘ahu desalination plant, while a proposed 700-acre Waikōloa housing development faces questions about its impact on limited freshwater supplies. Housing: Kaleimaʻo Village in ‘Ewa Beach is nearing completion with 126 affordable rental homes, adding to efforts to expand the islands’ housing supply.

Tourism & Small Business: The Hawaiʻi Tourism Authority will hold Oct. 30–31 workshops to help Maui farmers, makers and cultural groups reach visitors, set prices and grow their offerings. The agency is also seeking an emergency tourism declaration after Hurricane Lowell’s impact. Business Leadership: Hawaii Business Magazine’s Wahine Forum returns Oct. 23 with sessions on networking, leadership and AI. Local Retail: Blaisdell’s OnoFest brings more than 200 vendors together, with $6 debut dishes giving food businesses a chance to test new products with shoppers. Health Care: Centene will exit Med-QUEST at year-end, affecting about 24,000 ‘Ohana members, who must select new plans by Tuesday. Infrastructure & Costs: Oʻahu’s desalination project secured a $109 million EPA loan, while electricity customers face a second 7% rate increase, partly offset by a seasonal supply-charge drop. The state is also convening government and industry leaders to tackle permitting delays. Research: UH Mānoa will co-lead a new federal coffee and cacao research lab.

Tourism: Hurricane Lowell has sharply weakened travel demand, with Kauaʻi bookings down 59% and statewide bookings down 23%. The Hawaiʻi Tourism Authority is seeking an emergency declaration and $2.5 million for marketing, as businesses face layoffs and reduced airline service. Health Care: Centene will exit Hawaiʻi’s Med-QUEST program Dec. 31, leaving 24,000 members to choose new coverage; the company cited rising costs and reimbursement rates that haven’t kept pace. Water Infrastructure: Honolulu’s Board of Water Supply secured a $109 million EPA loan for an Oʻahu desalination plant. Agriculture and Research: UH Mānoa will help lead a new federal coffee and cacao research lab backed by a $40 million grant, aimed at boosting local production. Business Recovery: USPS is reconsidering curbside delivery for rebuilt Lahaina homes, a potential step toward restoring essential services as residents return. Energy Costs: Hawaiʻi faces a second 7% electric-rate increase, partly offset by a seasonal drop in power supply charges.

Water Infrastructure: Honolulu’s Board of Water Supply secured a $109 million EPA loan, completing funding for a Kalaeloa desalination plant expected to produce up to 2.55 million gallons of drinking water daily. Affordable Housing: Kaleimaʻo Village in ʻEwa Beach is nearing completion with 126 rentals, while Mayor Wright Homes is slated for a 2,450-unit redevelopment. Research & Agriculture: UH Mānoa will lead a new $40 million federal coffee and cacao research lab aimed at boosting production. Business Climate: Hawaii’s inflation is outpacing the mainland, and Hawaiian Electric’s second 7% rate increase is adding pressure, despite a partial offset from lower seasonal power charges. A January SPEED Summit will bring business and government leaders together to modernize permitting. Corporate Spending: New filings show Matson’s PAC gave $75,000 to a super PAC that backed Jarrett Keohokalole; the disclosures do not establish campaign coordination.

Water Infrastructure: Honolulu secured a $109 million federal loan to build a Kalaeloa desalination plant, expected to supply up to 2.55 million gallons of drinking water a day and ease pressure on aquifers. Affordable Housing: ʻEwa Beach’s $60 million Kaleimaʻo Village is nearing completion, adding 126 affordable rentals; demand was strong, with more than 1,000 applications. Permitting Reform: State, county, business and nonprofit leaders are set to meet in January for the first SPEED Summit, focused on modernizing Hawaiʻi’s permitting system. Agriculture and Research: UH will co-lead a new coffee and cacao research lab backed by a $40 million grant, as Maui-grown limes also make their way to international markets. Costs and Talent: Hawaiʻi inflation is running above the mainland, while a proposed second 7% electric-rate increase adds pressure for households and businesses. A UH survey also finds more residents are considering leaving, raising concerns about keeping local talent. Business Shifts: Dole plans to end Oʻahu coffee farm operations, and Hawaiian Airlines is cutting 13 non-union Honolulu jobs.

Water Infrastructure: Honolulu’s Board of Water Supply won a $109 million federal loan for a Kalaeloa desalination plant designed to produce 1.7 million gallons of drinking water a day. Housing: Work is set to begin on the Mayor Wright Homes redevelopment, which plans 2,450 mixed-income units, including 364 public housing apartments. Kauaʻi also celebrated the $7 million rehabilitation of 80 affordable homes. Agriculture & Innovation: UH Mānoa will lead a coffee and cacao research lab with an initial $8 million in federal funding, aiming to help local farmers and strengthen supply chains. Workforce: A Hilo youth program is helping students explore local careers and business ideas as Hawaiʻi confronts the loss of young talent to the mainland. Transportation: Skyline marked one year of Segment 2 service with more than 6 million rides, connecting communities to jobs, the airport and other major destinations.