HomeMy WebLinkAboutCOM 0675.478 2022-2024�p
��i| Yl/
'�". ._
/L14M.C-75
From: NathanEooen
Sent: Friday, August 30,2O2411:49AM
To: Council Testimony
Subject: Testimony regarding Bill 121/TAR for Sept 3rd Meeting
-`- _
Aloha COUncii Members,
I am sharing my testimony against Bill, 121/TAR.
c�
I have read draft 3. The reintroduction of the Visitor Destination Areas (VDA) in Draft3iapotentially
promising, but it seems incomplete in this draft. It does not seem to document their administrative or
management process. Previously it was a much more involved process with many rules that sounded
difficult. Now it appears to have no process or much of any administrative process. I woutd like VDA to
work and to be easy to create. I think the VDA is on the right track, but I think the bitt needs more
refinement todocument the fuKV[)Aprocess and ru\oset.
VDA are a potentiat partial sotution to my main concern is that this bill witi, make the majorityOf
hosted TARainthe mrnaKtowns and rural areas mostly iiieguLThe majority ofthehostedvanotionnantmin
inthese ornaUtown areas are inAg zoning and they could the -oretically apply for onon confornninguse
/NU(�\certificate. Hovvever' because ofhovvoverregulated thiabiiiiothey wit( not meet the NUC
restrictions and thus be forced to close their businesses. A lot of vacation rentals are not suited to be
permanent rentals - they lack kitchens etc. |naddition, ag zoning makes Upabout 4896DfHawaii
island. The impact nfeffectively ending the majority ofhosted TARSinAgzones iathat the visitor
economy in the smaller towns in Hawaii County wil.l. collapse leading to further tax revenue decLine for
the county and job loss at restaurants, stores, arts & culture venues, and other activityvenues as those
businesses shrink orclose due toieaovisitors. Look uttowns indistricts such aeHonnakuo'Puna, North
Kohaia,orKau-Lhestoreainthaaeiooetions are primarily visitor supported. Hawaii County'osmall
towns were hurting badly for decades after the end of sugar production. The visitor economy is what
sustains the business core ofeach ofthese small towns.
Second, the TAR regutation as written witt have a negative revenue impact for Hawaii County by teading
to the toss of revenue for hundreds of resident owned and occupied vacation rentats. Those owners pay
mittions of dottars of HCTAT and higher property tax revenue to Hawaii County every year.
Third, the bill as written appears to have many legal issues that will almost certainly result in costly
litigation for the County of Hawai'i spending taxpayer money for years. The County of Hawai'i could also
be tiable for costs from constitutional. takings of individual property rights through this regutation. The
18Oday minimum rent8|term ieDgthrestriction has already been biOCk8dbyofederaiinjunction ond
Hawaii County appears tObnbUDdk/VV8ihiDginto that same mistake.
Fourth, justthinnurnnl8[thoCOunCiiCD[nO1ittedtOanec0nOnliCiOlp8ntotudvbafnnap8SaingthiobiiL
Now the Council is moving towards passage without the economic impact study being carried out and
the results of that evaluated first. This is common sense for legislative action with fee revenue, tax
revenue, and profound economic impacts to the tourist in dustrywhich is the largest industry on Hawai'i
/nclosing, hostecl, vacation renta I operators are not villa ins; they are actuattyyour constituents who live
and work on Hawai'i Isla nd. You are putting many of them out of business& at the same time hurting
small town economies with these actions. Please perform and evaluate the relevant locally based
economic impact study before enacting legislation.
Mohmk)'
NathunEggen
Koho|u