 Aloha and welcome to Business in Hawaii with Reg Baker. We broadcast live every Thursday from 2 to 2.30 from the downtown Think Tech Studios in beautiful Hulahulahawaii. And we do have some beautiful weather. Unfortunately, California's got some challenges, but our rain is gone. We tried to send it to California, hopefully that'll help out a little bit. We got blue skies and nice trade winds. Everything is good here today. Just finished a presentation to Chamber of Commerce on a very popular topic. Year-end tax planning puts most people to sleep. But it is a very expensive and very important part of the year-end process. Most people don't realize this, but if you're in a state that has their own income taxes, some companies could be paying over 50% of their net income in taxes. So it's really, really important to do some year-end tax planning. We had a great program with the Chamber of Commerce today. And one little statistic I'm going to leave you with, a lot of people hear these stories about how the wealthy don't pay any tax. And just based on the 2016 tax returns, I can tell you that the top 10% of income earners. You get into that top 10% when you hit $138,000, which a lot of people end up doing, especially in a joint return. But the top 10% of the taxpayers in this country pay 70% of all taxes for the entire country. The bottom 50% only pays 2.8%. So the majority of the people in this country pay less than 3% in taxes. So what that does is it just lets you know that it is an important process to do some tax planning. But the wealthy and the small business group, they do pay a fair share of taxes. So I just wanted to share that with everybody today. Today we're going to have a very interesting conversation. This is another one of those success stories from the Small Business Administration. And that's the theme of the show, is that we want to talk about positive success stories in Hawaii. We do have challengers, no doubt about that, but we do have a lot of successes. And today we're going to have the president of an architectural firm that specializes in a very special niche in our market here, Lorraine Mantatoishi. I'm close. Yes. But Lorraine is going to explain to us a little bit about what she does and how she got into the business and how she's made it successful. But Lorraine, you've been in Hawaii for a long time. Yes, born and raised here. Born and raised. And so most people are going to ask or want to know, where did you go to high school? I went to Hawaii Baptist Academy. Hawaii Baptist, very good. My sons all went, I got three boys, they all went to start at the sea, which is not quite the same thing, but it's in the neighborhood. I went there for elementary school. Oh, okay. Very good. It's a good school. It's a little different today than it was a while ago. It's the campus has changed quite a bit, but after you got done with the academy, then you went to UH or did you go to mainland? I did go to UH. Very good. So architecture at Mandoa. Very good. And I noticed you've got a PhD. So were you there that whole time? No, I graduated with a bachelor's of architecture and then I went and got my master's at Oregon, University of Oregon. And then while I was doing my master's research, I was in Tokyo studying the Japanese traditional architecture. And that's when they asked if I'd like to get my PhD at Waseda University. Wow. So you've got an international element to your training at. Right. Very good. Congratulations. And that's, you know, one of the things that I have heard and maybe you can share with me, but I've heard that it's always a positive thing to get your bachelor from one school, maybe a master's from another, maybe a PhD from a third because you get the different perspectives from all the different professors and, you know, and what the universities have to offer. Is that a valid comment? Oh, that's definitely. It's been very good for me over the years. At first, I didn't want to go to school in Hawaii. You know, I wanted to go abroad or to the mainland. But now I'm really happy that I stayed in Hawaii for my bachelors and, you know, understand how business works and how people are and make connections and a lot of the people that I work with, I went to school with. So that was, you know, that's wonderful. It's nice to have that network and those connections out there. Right. Now, when did you decide that you were going to become an architect? Is that something that you kind of grew up with or was that something that happened in college? Yes, my grandfather was a contractor and we lived with them. So I would hear the truck start every morning and I'd hear him working because he had a shed in the back where he would prep for the day and then come home and then prep for the next day. So we saw all of that, that process of building. So you kind of almost grew up in the business then? I guess so. Yeah, and it's kind of neat, you know, it's nice to keep that legacy going. And then you got your education, you finished, and then did you come back and just decide, okay, I'm going to have my business now? Or did you work somewhere else first? I did work at other firms before I started my own business. So I worked in, in school, I worked with Vladimir Auspah, Auspah Snyder and Roland. And then after I graduated, I worked at DMJM International firm. They're no longer here in Hawaii. And then when I came back with my PhD, I worked at Mason Architect. Very good. How long did you actually work in the industry before you decided to go out on your own? Just a few years. It was about three years of work and then I thought, well, I might as well. And what was some, what was the thought process that you went through when you decided you wanted to go on your own? I mean, some people, you know, are going to be very happy working with a big firm and getting that salary. And some people like to take the risk and go out and it's, it's a scary transition sometimes. And what motivated you to do that? Well, both of my parents are entrepreneurs. So they, my father had a used car business. My mom still has her own dress designer business. So it just was a natural kind of thing. I always thought I would do it, you know. And the DNA a little bit. Exactly. That's good. And you had the support of the family to go through this too. I guess so. You know, we just, I didn't, I didn't really think about it, truthfully. Probably not a good, not a good thing. Well, but that's, that's interesting because a lot of people think about it and get scared. And then they decide not to do it. You know, sometimes, you know, if you're going to, if it's in your DNA and it's a natural part of the family upbringing, you know, that makes it a easier transition. That's very good. And when you decided to open up the firm, what, how did that all work? I mean, you're, you're doing something now that's, that's fascinating. And a little bit of a niche market, I think. I mean, there's, there's actually not that many women owned business doing this in Hawaii, is there? Right. Very few women owned architecture firms in Hawaii. And we are, I guess, the only one that actually specializes in preservation, historic preservation. I, how did I get, you know, I just started by myself. And I just started one project at a time. In architecture, it's a really long process because you don't just start and end a project right away. It's, it's a multi-year endeavor. And so it was difficult to, in fact, market or even prove that I could do the work because the work I was working on wasn't complete. So you can't just bring your portfolio of all of your projects. And, you know, two or three or four years. No, you're, you're actually doing projects, creating work. And after 10 or 12 years, finally, now you have a significant portfolio to show. Wow. So I was raising kids at the same time. So not, not, not a, you know, you don't mind being challenged. You know, having a new business and children can be a big challenge. You know, but the restoration piece of, is that something you always wanted to do? Or was that by design? Or did that just kind of happen because it was an opportunity? Or how did you decide to get into that? Well, my PhD is in historic preservation. Okay. I didn't really get my PhD thinking I wanted to be a preservationist. It just so happened that it was in architectural history. And, but I think I always had a really deep appreciation for history. So it's a good match for me. Very good. And I guess, is there any particular challenges? I mean, it's, it's kind of a unique type of piece of the architectural world, isn't it? Definitely. So we work a lot with other architecture firms. We're partnering with them as a consultant on projects that have a historic component to it. So if a building is 50 years older or old or older, then we fall into a law with Hawaii, which is called the 6E law that requires some oversight by the State Historic Preservation Office to make sure that our cultural and historical resources in Hawaii are preserved and restored properly. So we consult and advise other architects on how best to do that. Very interesting. And I guess, you know, we are in a lot of ways, I think some of the buildings here in Hawaii are aging, just like our streets. You don't have anything to do with the street infrastructure. I wish we need some work there, too. But, you know, but some of the buildings have been around for a long time. And I guess, you know, and there's actually rules that if it's there for a certain length of time, you can't really knock it down. You got to kind of work around it in some form or fashion, too, right? And that's part of the preservation. Right. And I think that we have clients. We have the city and state people who support preservation. And that's one of the wonderful things about Hawaii. We have a really deep cultural history here and an appreciation for that. And I think now, more than ever, there's a really deep appreciation for preservation. And I see that, you know, architects are talking about it. Lawmakers are talking about it. And we're involved in some really great projects. Yeah. And what do you think is triggering all of this? I mean, this deep appreciation. I mean, before, you know, development used to just knock everything down and rebuild. And there wasn't a lot of, you know, consideration for the history of what happened on that land. And once it's gone, it's gone. That's right. And so now, some people are beginning to wake up to realize that maybe it's important to remember some of these things that's happened in the past and to preserve it. Exactly. And I think there's a level of authenticity, you know, today with computers and with technology, plastics and all kind of glass. I mean, there's a lot of interesting materials, but they're new and they're sleek. And people have this longing for some authenticity, some hand, I guess, hand maintenance to their life. And that preservation brings that in. There's a component of using your hands to create something. Whereas, you know, and to me, that's more of a talent, you know, creating something on a computer and plastic and having it kind of printed out, you know, is a little less, I guess, rewarding. But I think also, and this is more of a technical question that I hope I can ask OK, the old way of building things, to me, seems to be more solid. They seem to last longer. They're they can, you know, put up with a lot more, you know, I guess, wind and rain and air. Today's buildings don't seem to be as durable. Is it just an observation? I mean, I guess I'm an old guy, so I like to think of it that way. But it just seems to me that some of the things that I know, for example, cars. I remember cars used to be built and they would last for two or three hundred thousand miles. Now you buy a car and it breaks down. It doesn't work anymore after thirty or forty thousand miles. I see some buildings, you know, some houses that are built that seem to have cracks in the walls and the ceilings and they don't seem to be holding up as well as some of the older buildings. And I'm just wondering, you know, being a professional, have you noticed, you know, is there any difference or is it just my imagination? Well, I think there's always differences in level of construction. So whether it's built today, you know, whether it was built a hundred years ago, it really just depends on the level of craftsmanship. That's a good point. Yeah, you build something junk a hundred years ago and it won't be around, but you build something with really good quality of the last. Yes. You know, and I guess it doesn't matter when you build it, if it's of high quality, it'll last. Yep. OK, that's a good answer. We're going to have to take a short break right now and then we're going to come back in about one minute. We're going to talk more about your firm and how it works and operates and how you got that started. So this is business in Hawaii with Reg Baker. We're here today talking about historical preservation. We're going to take a one minute break and we'll be right back. Good afternoon. My name is Howard Wigg. I am the proud host of Code Green, a program on Think Tech Hawaii. We show at three o'clock in the afternoon every other Monday. My guests are specialists both from here and the mainland on energy efficiency, which means you do more for less electricity and you're generally safer and more comfortable while you're keeping dollars in your pocket. Hi, guys. It's RB Kelly. I'm your host of Out of the Comfort Zone where I find cool people with cool solutions to problems that all of us face. Now, the thing is, we're really cool and I only invite really cool people. But the thing is, I think you're kind of cool too. So I think you should come and watch that. Thursdays at 11 a.m. here on OC 16 television with Think Tech Hawaii. I'm RB Kelly, host of Out of the Comfort Zone, and I will see you next Thursday. Welcome back to Business in Hawaii with Reg Baker. We're here talking with Lorraine today about some of the business that she has started in preservation of historical buildings in Hawaii. It's a unique niche market that she's got, I think a pretty good reputation for, you know, she's got a very impressive website. She's got a lot of projects under her belt. She's done very well at this. Matter of fact, Lorraine, your website is actually kind of easy to find. What's the website address? MAHawaii.com. MAHawaii.com. So for anybody who's interested, you could take a look at MAHawaii.com and take a look at some of the work that she's done. And when you get started, did you just start completely on your own or did you have any type of help to kind of guide you along the way? I pretty much started on my own. I hired an assistant and we just I just kind of just started building from there. And then I know at one point you were involved in a program of the Small Business Administration, the SBA. And can you tell us a little bit about that program? Well, I really like SBA. They've they've actually helped me throughout my my career. They I'd started out with a loan, small loan. And then a couple of years ago, I started getting a little bit more involved with the SBA, going to classes, just understanding more about business. And then last year I was at the emerging leaders class where we met. And it's really improved the way I do business. So I really appreciate it. So you would recommend, you know, anybody who is in business or thinking about going to business to maybe touch base with the SBA and see what's available to them to help them, you know, kind of get up to speed. Definitely. You know, it's amazing to me. I I'm involved with the SBA and have been for quite some time. And in my role on the board of directors, nationally, I get a lot of newsletters. And it's amazing to me of all the different programs that they've got available, both online and in a webinar type of environment across the country. I mean, for me, because of the West Coast and region nine that I'm the chair of, there's probably 100 programs a week that is available, you know, it's in San Diego and San Francisco and LA and Phoenix and Hawaii, you know, they're just all over. And a lot of it is pretty generic that can be useful for anybody. So anybody who is interested should reach out and find out more about these. But there's also a lot of local programs. You know, you mentioned the leadership program, the excellence program. There's Boots to Business. There's a score ace. There's a lot of other, you know, SBDC. There's just so many different areas to go get that support. Yeah. You know, so it's I think it's a resource that a lot of people don't appreciate and how extensive it is. So you went through the course and did that help you? Did it help you understand anything differently? Or what's your thoughts? I think it helped me project goals, learn how to strategize and even to think beyond what I was originally thinking, you know. And I usually, I mean, I guess I'm the type of person is not really afraid of going for it. But I think it forced me to dream even larger than what I originally was. So I really appreciate that. And I really love that support. And like you said, in our class, we had all kinds of different people from contractors to bar owners to, you know, shop owners. I mean, all kinds of. And it's interesting to hear how they have addressed some of their challenges and the issues that they had to deal with. And it makes you think a little bit and say, Oh, well, you know, maybe I could do something like this, you know, and it's it's it really gets you outside of that comfort zone, that box that you tend to get into sometimes and and think and get creative. Yeah. So it's a good exercise. So taking now back and go moving back now to your business and you've got the website and you've got all these different projects on there. Tell me you work with other architects, you know, if they're going to be doing some renovation work in a particular building, then they're going to bring you in to be an advisor on, you know, what's culturally what acceptable or what's what was allowed. Right. So not all of our work is advisory work. We do projects on our own as prime architect as well. OK. But our role is to always ensure that we're following the preservation guidelines. So they're technical briefs that dictate how buildings should be restored and rehabilitated in the proper way. And just give us some examples. Give us a feel for what that is in the proper way of doing the restoration. Is there materials that are allowed or not allowed? Is there I mean, how much of a change if any can be made? You know, I mean, what what are some of the nuances of going through a restoration for historical building? OK, well, so if the if the building is not in good condition, let's say it's a plantation house and there the plantation house is typically single wall construction. So it's basically a piece of wood about an inch thick and then usually about eight to six inches wide and it fits. It's a tongue in groove. So the tongue fits into the groove and it stacks vertically. So they're all interlinked. That's right. OK. But let's say a lot of the wall has been termite eaten over the years or water damage. We would remove those damaged boards and put back similar tongue in groove boards. We wouldn't just tear out the wall and put some plywood or something like that. You know, we'd actually want to replace the material, what we call in kind, which means similar to what was already there. OK. Does that I guess that in some way limits the options of what you're able to do with the building? Yes, it does. But it gives the character, it retains the character. So what we do is we first understand what are the character defining features of the building? So is it the wall or the windows that are important? Is there a base that's important, the foundation type, the roof type? So we're identifying all of these features because when we do the restoration or sometimes it's an expansion or even making the building smaller, we know what's really important to save. So if there was somebody out there that owns some property that had one of these historical buildings on it and they really didn't know what to do with this thing for a while because it's kind of, you know, old and leaky. And so you they could reach out to you and then you can take a look at this and give them some thoughts and ideas on how they can keep the building, you know, intact in a sense and just make it look a whole lot more better and make it functional. That's right. That's right. A lot of times people think they can't do anything with a building. They can't touch the building. But the truth is we go in and we're as long as the exterior is looking pretty authentic. We do a lot of work on the interior to make it functional and to make it technologically appropriate. That was one of the questions I was going to ask the technology aspects. I mean, the outside, you try to maintain as original as possible. But the inside, I mean, they've got maybe some old kitchen appliances, but you can upgrade those to a more technology advanced type of kitchen. Yes. And usually that means gutting the kitchen completely. Sometimes, especially in older homes, the kitchens are small. So we usually make an addition to capture a larger kitchen. So you can add a piece on to the building. Yes. Sometimes we're adding on elbow the size of the house. Very good. So as long as it's looking authentic from the main road or from the side road, a lot of times we're doing all of our additions in the back where nobody can see. Well, and that could end up making a significant difference, having a small thousand foot type of building that would make for a nice maybe living room and family room, but then adding to the back, maintaining the integrity of the facade on the outside, but expanding and growing. Now, we're not going to make it into a monster home, but you can make it functional so that it can be used. Yes. Yeah. That's some and is there when people, a lot of people now are enhancing and building add-ons and and and because it's cheaper than, you know, buying a new house for the kids when they grow up and have a family. So they're just kind of keeping, you know, people close by. The cost about the same or, you know, if they wanted to renovate the house and make it look better and expanded a little bit, the cost of doing that versus, you know, just a regular expansion onto the house. And I mean, sometimes it's required. You have to do it. But other times, maybe it's optional, but the cost shouldn't be that much different. Should it? No, it typically isn't. And people a lot of times have its idea that it's it will be a better house if I just knock it down and start from scratch. But as you mentioned a little earlier, the older buildings actually have more integrity. They're well-crafted and to retain what's there and to, you know, fix it up and make it look better. And then to put an addition on, actually makes the house a lot more beautiful. It's very expensive to start from scratch and make it as beautiful as if you had just taken the older structure and refinished it. Yep, just cleaned it up a little bit. Yeah, that's good. I guess part of the process of knocking something down and then rebuilding it, there's more permitting and approval process that has to be done for a complete reconstruction as opposed to a renovation. Is that a fair statement? Yes, you have to usually go through the State Historic Preservation Office if the structure is historic. Right, right, very good. Well, we're going to wrap up here in about 30 or 40 seconds. Is there any closing comments you want to make about getting into the business or anything like that? I don't know. Pretty much covered it all. I think so. But I guess you've done well. You've done a unique business in what is perceived as a male-dominated industry and you've done well in it. And I guess you're going to continue to do well and just keep growing. Thank you very much. Thank you for having me. It's great to have you on the show today. Thank you. This is Business in Hawaii with Reg Baker. We broadcast live every Thursday from 2 to 2.30. We try to highlight success stories in Hawaii. Despite all the challenges, there are successes. So have a great weekend and we'll see you next week. Aloha.