Honolulu Star-Bulletin from Honolulu, Hawaii • 23

,1 LFGALS PUBLIC NOTiCFS C8 ar tmm mvm mm Ml )mf srais CALL SECTION Business Editor Stephanie Kendrick 529-4792 skendrlckstarbulletln.com WEDNESDAY, MAY 2 8,2 00 3 5 29-47 9 2 BUSINESSSTARBULLETIN.COM TAKING STOCK TODAY'S LO I NASDAQ 1,563.24 6.55 RUSSELL 2000 430.48 2.77 NIKKEI 8,234.18 113.94 HANG SENG 9,510.62 89.91 YEN 118.57 1.31 GOLD $359.50 SILVER $4,635 CRUDE $28.58 Honolulu Ytar-Bulletin BUS a DOW JONES IND. 8,793.12 953.22 lU .77 ls 1.74 ml fimmi mm mm raa It could build an electricity facility at Campbell Industrial Park, subject to regulatory approvals quire an Interest in part of its property for a second coal unit, according to a filing with the state Public Utilities Commission. HECO, in its 2002 Integrated Resource Plan, contemplated building such a plant by 2016, though the company's plans are not final. "It just seemed like a reasonable thing to allow for an option down the road if and when we ever decided to pursue something like that," said Hawaiian Electric Co. By Tim Ruel truelstarbulletin.com Hawaiian Electric Co.

has received an option to build a second 180-megawatt coal-fired electricity plant at Campbell Industrial Park on Oahu. AES Hawaii which operates the existing 180-megawatt coal-fired plant and sells power to Hawaiian Electric, has granted an exclusive option for Hawaiian Electric to ac-. --J: imtriimum-1 iiiiiimiiiiii mn iiirinn" ii'rii'i 1 1 1 "nT'vr hi fl i ri mi n'J 1 -t IN THE HEADLINES eBay faces $35 million verdict C2 Earnings boost stocks C2 CSFB banker pleads innocent C5 Stocks. C3 Mutual funds. C4 Hawaii mutual funds, C2 i i BUSINESS BRIEFS IN HAWAII Affordable housing projects get credits iThe state Housing and Community Development Corp.

will award more than $12 million in low-income housing tax credits over 10 years to two private developers for the construction and rehabilitation of 91 affordable rental units. Most of the credits are from the federal government with the state component of the credit set at 30 percent. The contract for the $3 million Nanaikeola Senior Apartments in Nanakuli was awarded to Hawaii Intergenerational Community Development Association. The project is part of a larger mixed-use development of 70 affordable housing units and an adult day care facility to be operated by the Waianae Coast Comprehensive Medical Center. Rents for the 30 one-bedroom units will range form $363 to $605 per month.

The contract for $9.2 million Lokenani Gardens, in downtown Wailuku, Maui, went to Ooka Supermarket Ltd. The developer of the project, Byron Ooka, is president of Ooka Supermarket, which is across the street from the development. When complete, the project will create 61 new affordable units for seniors which will rent for $595 per month. Docs and businesses to talk The Hawaii Medical Association and the Hawaii Business Health Council are sponsoring a forum designed to bring physicians and business leaders together for a discussion on the business community's stake in quality medical care. The event is 1:30 to 3:30 p.m.

Saturday at the Sheraton Waikiki. They keynote speaker is Dr. Chlyomi Fukino, director of the state Department of Health! Also speaking will be Dr. James Reynolds, chief executive of Health and Productivity Corporation of America and Dr. Dan Hes-linga, who will offer a local physician perspective.

The forum will be followed by the Hawaii Medical Association annual fund-raising dinner. Gov. Linda Lingle will be the keynote speaker for the evening event. For more information, call the association at 536-7702. Hawaiian Air passengers drop Hawaiian Airlines carried fewer passengers in April than it did a year ago but ran its aircraft closer to full due to some service cutbacks, according to its monthly traffic report.

Hawaiian carried 433,315 passengers last month, down 0.9 percent from 437,109 in April 2002. However, increased demand for seats outpaced seat availability, resulting in a load factor of 79 percent for April, compared to 78.6 percent in April 2002. There was a 24 percent increase in revenue passenger miles, the number of passengers multiplied by the miles they were carried, to 434.4 million from a year-earlier 350.4 million. Available seat miles were up a little less at 549.8 million, a 23.4 percent increase from 445.6 mil-, lion in April 2002. That meant a slightly higher occupancy of available seats.

Hawaiian, which flies mainland-Hawaii, interisland and Hawaii-South Pacific routes, bundles those services together in its monthly reports. A worker in Pennsburg, paints a home under construction. New home sales in April were at the highest level this year as buyers continue to take advantage of record-low interest rates. Home sale gains no surprise to Greenspan spokeswoman Lynne Unemorl. "It certainly doesn't mean there's a coal plant right on the horizon." Coal burning produced 19.1 percent of HECO's electricity last year on Oahu, while oil produced 77 percent and biomass, or organic matter, produced 3.9 percent.

Unemori said if Hawaiian Electric decides to exercise the option to build a coal facility, the company would still face permitting hurdles and need approval of the Public Utilities Commission. Hawaiian Electric would have to negotiate a definitive acquisition agreement of an interest in the site, which is leased to AES BLOOMBERG NEWS money in consumers' pockets. Home prices are up 38 percent in five years, a powerful offset to sinking stock prices. Housing starts hit a 16-year high last year, buoying employment in construction. And as mortgage rates fell along with the short-term rates the Fed oversees, refinancing freed up $100 billion last year for people to spend on everything from cars to clothes.

By keeping consumer spending robust, that saved the economy from what could have been a worse downturn. In the latest reports, sales of both new and existing homes showed unexpected strength in April, rising from March levels The most recent fall in in mortgage rates has spurred record refinancing activity, which Please see Greenspan, C5 ends up with their film releases, Vericella said. At the time funding was cut, Ken doldstein, executive vice president and managing director of Disney Online, said "Disney has so overde-livered," given the company's contribution vs. what the state had paid. The linkage remains powerful, Vericella said.

"I think it just points to the fact that the first year was one where it turned out to be a terrific alliance," he said. "Disney clearly delivered above and beyond what we all had expected. It reinforces the fact that the first year was very positive for Disney and for Hawaii and for the Islands a lot of benefit there is still accruing." Disney Online agrees the Lilo Stitch partnership was "very successful," according to spokeswoman Kim Kerscher, The promotional agreement culminated last month with the awarding of 25 Hawaii by Campbell Estate. The option also depends on HECO consenting to a proposal by AES Hawaii to refinance its existing coal-fired facility. The refinancing would lead to a slight reduction In electricity rates for Oahu residents.

Both sides have agreed to the terms and conditions under which HECO would consent, but the refinancing hinges on further steps, Including approval by the Public Utilities Commission. The existing AES coal-fired plant was among the top 10 releasers of Please see HECO, C5 Liberty House former CEO Monahan on trustee list 5 are leading candidates to oversee Hawaiian Airlines' bankruptcy By Dave Segal Former Liberty House Chief Executive Officer John Monahan, who led the Hawaii department store chain through the costliest bankruptcy in state history, is one of the five top candidates to become trustee of Hawaiian Airlines, sources close to the situation said. Monahan, whose name was on both three-man lists submitted by Boeing Capital Corp. and the unse- "3 John Monahan: Led Liberty House through its I bankruptcy, which was the most expensive in Hawaii history cured creditors committee, has no airline experience but was instrumental In leading the state's largest retailer through a contentious three-year Chapter 11 reorganization. That bankruptcy culminated in mid-2001 with the $200 million sale of Liberty House to Federated Department Stores resulting in the local stores becoming Macy's outlets.

The U.S. Trustee's Office has been searching for a trustee since Bankruptcy Judge Robert Faris' May Please see Trustee, C5 Disney Online trips for four to Hawaii In partnership with the HVCB, Hawaiian Airlines and Hilton Hotels. The trips are each valued at $4,000. Vericella would not express regret that the partnership was cut short. "You can't always go back and second-guess," he said.

"I think you have to be happy about the fact that this worked very well. Disney was a great partner during that time and hopefully down the road there will be another opportunity for Disney and Hawaii to do other things together." Some Lilo Stitch pages at Disney. go. com still display HVCB's "Hawaii The Islands of Aloha" logo, but none linked to the HVCB site. Erika Engle is a reporter with the Star-Bulletin.

Call 5294302, fax 5294750 or write to Erika Engle, Honolulu Star-Bulletin, 500 Ala Moana, No. 7-210, Honolulu 96813. She can also be reached at: eenglestarbulletin.com The Fed chairman recognized early the importance of home ownership to consumer spending By Greg Ip Wall Street Journal As an economic consultant in the 1960s, Alan Greenspan had a novel insight about buying and selling homes. He noticed that when a house changed hands, the mortgage the buyer took out almost always was bigger than the one the seller was retiring. Greenspan went on to conclude that this borrowing played an unexpectedly large role In consumer markets, by generating extra spending power backed by the value of homes.

At the time, it was an arcane thesis that few other economists ac Last laugh over Lilo Stitch cepted or even understood. But today, that very phenomenon is having a powerful Impact across the United States. And for Greenspan, now chairman of the Federal Reserve, it has emerged as his best weapon for keeping the fragile U.S. economy from slipping back into recession. As the Fed repeatedly cut interest rates over the past 2 12 years, much of the economy barely responded.

Businesses' capital spending didn't, nor did the post-bubble stock market. But the housing industry from construction to refinancing to rising prices has surged, steadily putting more THEBUZZ ErikaEngle President Tony Vericella. The award "just reinforces the fact that it was a very creative and integrated way to reach targeted consumers," he said. It was the first time Disney had ever done a mini-site with any destination other than its own theme parks and the first time they'd done a mini-site of that nature for any of Star-Bulletin staff and news services Prices at the pump Self-service cash price in dollars per gallon. Stations, except Lex Brodie's on Queen Street, andArco on Monsarrat Avenue are in the general area bordered by King, McCully and Beretania streets, and Ward Avenue.

EXECUTIVES at Disney have every right to look at the state of Hawaii and exclaim, "Wop your jaws!" Disney Online has won two online advertising awards from the Web Marketing Association. One is the Best Travel Integrated Advertising Campaign award for the Lilo Stitch "Ohana Island mini-site and sweepstakes." Its FamilyFun.com Weekender Newsletter won the award for Best General Interest Newsletter HTML e-mail campaign. On the Lilo Stitch front, the Hawaii Visitors and Convention Bureau had agreed to spend $3.9 million over three years for joint marketing of the set-ln-Hawait animated movie and the islands. The contract cost $1.7 million In state funds for the first year, but the Hawaii Tourism Authority later cut funding for the second two years. The first year ended in April, according to bureau Regular MIdgrade Premium Unleaded Unleaded Unleaded Aloha $1.949 $2.049 $2.149 LexBrodie $1.949 $2.039 $2,129 Chevron $1.979 $2.079 $2.179 Tesoro $1-969 $2.069 $2.169 Shell $1,959 $2.079 $2.179 ARCO" ---g U.S.

average price for regular unleaded gasoline $1.49 yji 2 1 7, i I Find them in the Paradise Pages, the new Yellow Pages The Paradise Pages 485-8850 www.theparadlsepages.com i.