▪ NY Times on National Retailers, Honolulu Advertiser on Hawaii's Business Climate

Thanks to Mark Murakami for pointing out an article in today's NY Times, "Once Reluctant, Retailers Now Rush to Hawaii," about the growing presence of national stores such as Wal-Mart, Home Depot, Whole Foods, and Walgreens:

For years, large mainland-based retailers tended to steer clear of the islands that make up the state of Hawaii because of the extremely high costs of buying land and shipping goods, as well as a tight supply of construction workers and retail employees.

But in the last four years, a wave of retail development has washed over Hawaii, as the state has experienced a post-2001 rebound in tourism and growing optimism among residents, as job growth has been strong and home prices in many areas have roughly doubled since 2003.

. . . .

Rosalind J. Schurgin, a principal at the Festival Companies, a Los Angeles-based firm that is redeveloping the Royal Hawaiian Shopping Center, said that even though mainland retailers are showing “very strong” interest in expanding to Hawaii, the logistics can still be maddening.

Among the factors that can slow the development process are the considerable travel time that mainland-based executives need to set aside while visiting the state, as well as increasingly common three- to six-month-long delays in obtaining building permits. “Everything in Hawaii, like making deals, can take twice as long,” she said.

Compare that story to this piece from today's Advertiser, "Hawaii's image affected by decision," referring to yesterday's decision by a Maui trial court to require the state to complete an Environmental Assessment under Hawaii's Environmental Policy Act prior to the Hawaii Superferry commencing operations:

Hawai'i has had a reputation as having a bad business environment, though the climate has improved slightly in recent years as Gov. Linda Lingle's administration tries to advance the state as one that welcomes new businesses and works on solutions to perennial business complaints, such as high workers' compensation costs. A ranking by the Tax Foundation for 2007 found Hawai'i had the 24th-best business tax climate in the nation.

But when it comes to regulatory issues, investors may still wonder whether to make large bets on Hawai'i, business leaders said. The Superferry attracted $300 million of investments, including $140 million of government-backed bonds, and that investment is in jeopardy.

The Superferry owners had moved forward based on assurances from state officials that no environmental assessment would be needed. But the Maui court sided with the Sierra Club, Maui Tomorrow and the Kahului Harbor Coalition in ruling that the environmental assessment was necessary and that the ferry could not run while the study is being done.