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HomeMy WebLinkAboutCOM 0675.434 2022-2024? / PCPuu.o dill 12( Kohala 0ast MM ,b7 a RESORT ASSOC IAT ION August 15, 2024 Ashley Kierkiewicz, Chair � Policy Committee on Planning, Land Use and Development Hawaii County Council Hawaii County Building 25 Aupuni Street Hilo, HI 96720`�� Support and Comments on Bill 121 Draft 2 Dear Chair Kierkiewicz and Members of the Policy Committee on Planning, Land Use and Development, The Kohala Coast Resort Association (KCRA) is in support of Bill 121 Draft 2, updating our short-term vacation rental laws. We are grateful to Councilmembers Heather Kimball and Ashley Kierkiewicz, Planning Director Zendo Kern and Deputy Planning Director Jeff Darrow, for stewarding this process. There are several reasons we support this bill: 1) It will create a more equitable playing field in terms of registration, taxation and regulations by addressing all types of transient accommodations rentals (TAR) — owner -hosted, operator -hosted and un-hosted, 2) It will aid Civil Defense in communicating with all of our visitors during natural disasters and emergencies, 3) It will provide an oversight framework to make sure that accommodations being offered are safe, secure, and follow our required building codes and county laws, 4) It will help us avoid bait -and -switch scams where one property is advertised, but another property, or none at all is delivered, 5) It will help us obtain more accurate visitor counts and distribution models island -wide, 6) It will make sure the hosting platforms are transparent and accountable for reporting to the government, and 7) It will provide more comprehensive data, so that economic forecasting can be more accurate, and planning for key infrastructure improvements can be considered. We offer the following comments: 1) Section 25-4-16.7 Rental Registration Process, Sub -section (a), Number (6) a notarized affidavit in a format determined by the director, and submitted under penalty of perjury, that the transient accommodation meets health, safety and code requirements. As has been the lawful standard, any time there is a change in use of any structure or property, the owner is required to go through the existing planning, building and engineering processes. The County of Hawaii is then responsible for verifying that the owner is meeting health, safety and code requirements before that new use is allowed. Allowing the owner to simply provide an affidavit stating that they have met those requirements, without the necessary follow-up, skirts the checks and balances the public requires. This could put visitors' and residents' health, safety and welfare in danger. We suggest that this section be amended so that the County of Hawaii requires, at minimum, an inspection of all TARS to verify that they are structurally sound, have adequate means of access and egress, and comply with all other code requirements, before they are issued a TAR license. While later sections of Bill 121 assess penalties and violations if sections of the owner's affidavit are found to be false, we believe the information contained in the affidavit should be verified at the outset. 2) The only way to ensure that all accommodations are abiding by the same rules, regulations, and taxation policies is through active review and enforcement. We appreciate that this bill provides a funding resource for the Planning Department to secure full-time staff members to help address registration, complaints and enforcement. We believe that the Finance Department should assign full-time staff members to address tax collections as well. As previously shared, according to AlltheRooms.com, more than 19,000 vacation rental units were advertised in Hawaii County during 2023, with an average daily rate of more than $275/night and more than 775,000 nights booked. The county must use all of its resources to collect all the taxes that are due from this activity. This bill is in alignment with Hawaii County's Destination Management Action Plan (DMAP) 2021-2025, which was completed with community, government and industry stakeholder involvement in partnership with the Hawaii Tourism Authority (HTA), the Island of Hawaii Visitors Bureau (IHVB) and County of Hawaii Department of Research and Development. Better management of TARS was identified in the top 10 needs for Hawaii Island and can be found here - I ITA Hawaii Island Action flan (hawtiltourismauthorlty__oig). As a board member for the Hawaii Island Safety and Security Professionals Association (HISSPA), I am grateful that this bill will help address visitor safety. And as a former Executive Director of the Visitor Aloha Society of Hawaii, Hawaii Island (VASH) I am grateful that this bill will ensure that accommodations offered online are safe, secure, and actually exist, as I had to find alternate accommodations for multiple visitors during my tenure who were the victims of bait -and - switch scams online. The Kohala Coast Resort Association is a collection of master -planned resorts, situated north of the Ellison Onizuka Kona International Airport at Keahole. In 2024, KCRA members employ more than 5,500 Hawaii Island residents, supporting more than 17,000 family members, at our hotels, timeshares, golf courses, restaurants, shopping centers and spas. In 2023, the members of the KCRA paid nearly $45 million in GET and $75.7 million in TAT to the State of Hawaii and the County of Hawaii. KCRA's members, as well as the businesses and residents within the resorts along the Kohala Coast, paid more than $151 million in property taxes to Hawaii County in 2023, accounting for more than one-third of all property taxes collected island wide, according to Hawaii County's Real Property Tax office. Thank you for your consideration of our comments on Bill 121. Sincerely, P �E" Stephanie Donoho Administrative Director, Kohala Coast Resort Association Craig Anderson, VP Operations, Mauna Kea Resort —President Pat Fitzgerald, CEO, Hualalai Investors — Vice President Charlie Parker, General Manager, Four Seasons Hualalai — Secretary / Treasurer Chris Sessions, DOSM, Fairmont Orchid — Board of Directors Daniel Scott, Managing Director Rosewood Kona Village — Board of Directors Scott Head, VP Resort Operations, Waikoloa Land Company — Board of Directors David Givens, General Manager, Hilton Waikoloa Village — Board of Directors Rob Gunthner, Area VP Resort Operations, Hilton Grand Vacations — Board of Directors Pete Alles, Regional VP and GM, Mauna Lani, Auberge Resorts Collection — Board of Directors Mark Goldrup, General Manager, Waikoloa Beach Marriott — Board of Directors PO Box 6991, Kamuela, HI 96743 * (808) 747-5762 * kohalacoastresortassn2ginail.com * www.kohalacoastresorts.com