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HomeMy WebLinkAboutCOM 0675.507 2022-2024/<0hfl/fl ci0fl5t RESORT" ASSOCpATION August 30, 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 3 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 3, 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 provide an oversight framework to make sure that accommodations being offered are safe, secure, and follow our required building codes and county laws, 3) It will help us obtain more accurate visitor counts and distribution models island -wide, 4) It will make sure the hosting platforms are transparent and accountable for reporting to the government, and 5) It will provide more comprehensive data, so that economic forecasting can be more accurate, planning for key infrastructure improvements can be considered, and emergency communications plans can be implemented. We offer the following comments: 1) Section 25-4-18.2 We would request that the Council reinstate the language in the initial draft of Bill 121. That language has been challenged, field-tested, and ultimately upheld in the courts in other jurisdictions where short- term vacation rental laws have been enacted. The original language would require that the hosting platforms are required to submit not only information regarding the tax map keys and ownership of short-term rentals, but also information on the number of days rented, occupancy, and rates for those rentals. This is in alignment with requirements that other accommodations types must complete in their reports with taxing authorities, and would help to ensure that all appropriate taxes are collected. 2) We appreciate the additional sections outlining enforcement on this measure in Draft 3. We understand that it is the intent of this bill to use registration fees to fund enforcement positions. We would suggest that the county use a portion of the TAT it collects now, which is placed in the general fund, to permanently fund enforcement positions not only in the Planning Department, but also in the Department of Finance, and the Real Property Tax Division, as this legislation will have significant impacts on the staff members from those departments. 3) This bill gives the Planning Director authority to create a separate process to allow vacation rentals to show that their units have addressed all required safety, security, and building code requirements, in place at the time of their construction. This separate but unequal process would circumvent the standard practices that any other type of building has to go through in order to receive a certificate of occupancy. We would ask that this section be amended, so that regardless of the type of structure, the same rules, regulations and processes are applied equally. 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 Plan (hawaiitourismauthority orgi. 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 cormnents on Bill 121 Draft 3 Sincerely, ( 1 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 * kohalacoastresortassn(&gmail.com * www.kohalacoastresorts.com