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HomeMy WebLinkAboutCOM 0236.047 2024-2026 P( PCPLUED Bill 47 - CpMM. From: Scott Walker `=, 1 co� Sent: Monday, May 5, 2025 2:38 PM CD To: Council Testimony s Subject: Concerned residents k.77 —� -z� C 1,4! r7 Aloha, c„ = - Please find this testimony in opposition to the constant attacks by Heather Kimball and Ashley Kierkiewicz and the bill 47 (previously known as 121)which is obviously designed to help the hotels and put countless local Big Island residents out of business during an already very bad economy.We were promised to receive the results of the Economic Impact Study prior to any more attacks on our industry but it appears they are trying to back door local residents with their new "registration" process BEFORE the results of the economic impact study has been completed, reviewed,and provided to the public for review. As a long time resident and tax payer who makes large TAT,GE,County tax payments every quarter, I must say we feel our livelihoods are being unfairly attacked on a regular basis causing undo stress, anxiety,and leaving many residents wondering how they are going to make ends meet.And, let's be real,we know the goal as far as Heather Kimball is concerned-the"registration process"is an information gathering mission designed to shut down anyone that does not fit squarely into the bills narrow boxes and heavily fine those operators, potentially causing liens on people's personal residences that are simply trying to make ends meet,provide extra income for their farms,and live in peace on the Big Island without Government overreach . Here are just some of the many issues with Bill 47. 1.This bill makes no accommodations for the 4 in 10 Hawaii Homeowners who have significant unpermitted improvements. 2.As with bill 121, it remains a complete ban on operating in agricultural zoning. If this bill passes, hundreds or thousands of small farms will essentially be put out of business while others will struggle without having the extra income from renting their ohanas.Small farms are very important to the Big Island and Hawaii in general-if this bill passes,it will be a death blow to many of us.This will have far reaching implications throughout the Big Island. 3.The fines for non-compliance are catastrophic and enforcement lacks due process protections. 4. Bill 47 is the next step forward in the Hotel Lobbys effort to divide and conquer the Big Island's vacation rental industry which has operated for decades without any significant issues. LEAVE HOSTED OPERATORS ALONE! Let the Big Island residents make a living!!We already pay the highest TAT taxes in the nation. How will Hawaii make up for the loss in tax income if you put many of us out of business!!You can look to Oahu to see that this did not work there and the Big Island is even more at risk! 5. By law and convention (not to mention common decency and respect for Big Island residents)when a bill fails at the County Council,it cannot be re-introduced for 2 years. Heather and Ashley are using a technicality to re-introduce this bill less than 6 months after the prior bill failed during very uncertain,bad economic times.They are attacking us.The public has a RIGHT to enjoy our lives without being constantly assaulted with very unpopular legislation.The legislation is so unpopular that Heather and Ashley are doing everything they can to get it pushed through by any means necessary before the next election to appease their benefactors-the hotel industry. 6.After broad opposition to Bill 121 the County has commissioned an economic impact study to determine the size and scope of the industry as well as the likely effects of new legislation.They both assured us even in the las teti • in April Comm. :_'1 3 I• '1tyj Ref. To: p Ref. Dale MAY — 6 2035 that nothing will happen until they have the results of the economic impact study,also accounting for the current economic situation but,as we have come to expect,it appears they have no intention of waiting on this study. If Bill 47 is passed before the economic impact study is completed,it will be too late-the damage will already be done. 7. Changes to customs and borders enforcement, new tariffs and changes to national economic policy are already resulting in a significant reduction in future reservations. Families dependent on tourism are about to or already experiencing a period of hardship with no end in sight. Now is NOT the time to impose new costs and regulations on families that are already struggling unless the goal is to have these residents lose their homes,farmers going under, local restaurants and other businesses suffering due to loss of tourists in already low income areas such as Kau. Couple this with a$10,000 fine for failure to file and you have created a huge headache for industries and families across the island. 8.The legislation makes it impossible to continue operations with unpermitted improvements.4 out of 10 properties on the Big Island have significant unpermitted improvements due to historic problems with Planning and Permitting including rampant corruption, lack of resources, lack of leadership, low pay,and low morale. 9. MOST STR operators would not rent long term for any number of reasons including the fact that the long term rental laws in Hawaii heavily favor the tenant, many of the homes are great for short term but lack things like full kitchens,etc to make it a suitable long term rental,many of us simply want to make ends meet by renting our ohanas short term when we want to,and many other reasons. 10.The legislation requires property owners to disclose improvements to their properties(section 6-45(A)3-4),then requires the Planning Department to revoke their registration if there are any unpermitted improvements on the property(Section 6-48(B) 1).Then in the same breath,they tell us to rent them long term. By the county's own estimate, 2,600 families will be swept up by these two sections alone! Even if it was financially possible for these families to navigate the County's as-built permitting process in the 90 days provided by this bill, Hawaii County does NOT have the personnel or resources to process 2600 as-built permits in a timely way.As of today,it takes nearly 2 years to obtain and close one of these permits. So,the 90 days provided is not acceptable or realistic. Taking away the livelihood of 2.600 families due to a systematic failure in the County's Planning and Permitting Process is unjust and inequitable! Especially in low income,food insecure places like Kau! 11.This bill continues to be a complete ban for farmers who operate hosted rentals in Agricultural zoning. Even if every improvement on the farm is properly permitted,Section 6-48(B) 1 requires the Planning Director to revoke registrations is any"structure used therefor or any activity on the property in connection therewith, being in violation of any applicable law". Please consider what the Big Island looks like if you put many small farmers out of business! Especially in the current climate where it is more important than ever to grow food on the Island and support local farmers.This alone could negatively affect the Big Island forever. Since Hawaii revised statutes 205-4.5 forbid the use of agricultural zoned lands for rentals of less than 21 days,all rentals on ag land would be considered illegal.This is the logic Hawaii County used when they refused to issue permits under Bill 108 to non-hosted rentals operating in ag zoning.The County won the resulting lawsuit on appeal and there is no reason to believe that the County has changed its position. Please, leave our Farmers and Hosted renters ALONE to operate our small businesses and enjoy our life in Hawaii while providing a popular alternative to tourists that want a more intimate, educational, local experience that a hotel simply cannot provide.This is especially important in low income places like KAU where there are no hotel or other lodging options and where many of these families and farmers will be put out of business by this bill. Forgive all of our skepticism but it is not without merit-the most likely outcome of this bill for families on Agricultural zoning is that the County will issue the registration initially,then revoke it due to "violations of the law"and fine the family$10,000!! 12.This brings us to the enforcement mechanisms which are clearly out of proportion to the violation of ailing to register.According to the Federal Reserrve, 37%of American families cannot raise$4000 in an emergency without going into debt. Hosted vacation rental operators are not in it to get rich. In most cases they are local families and small farms 2 who count on short term rental income to simply make ends meet.a$10,000 fine would be catastrophic for most of these families who would not only lose the income but their homes. This begs the question"Well, if the fine is too large,just follow the law!"The corollary is that we should allow the death penalty for J-walking. If you don't want to be executed by lethal injection,you shouldn't J-walk.This is an extreme example but it makes the point and these fines are basically a financial death penalty for doing nothing more than operating a highly rated short term rental to make ends meet like we have for decades!The fine for violating the law should be proportionate to the law being broken. Failing to register for fear of being shut down due to the inequities of this bill and resources should NOT result in Bankruptcy or losing your family home,small farm,etc. The other problem with the enforcement mechanism is the lack of any due process.The process proposed in Bill 47 allows the Planning department to fine homeowners$10,000 then assess daily fines of twice their nightly rate on the PRESUMPTION OF GUILT! If the homeowner then appeals the fines,it may take months or years to resolve. During this time the Planning Director can continue assessing daily fines.This can lead to fines of hundreds of thousands of dollars for something as simple as offering a short term rental liek we have been for decades with little to no issues. Homeowners should not have to face hundreds of thousands of dollars in lost revenue simply to challenge an unfair or erroneous finding by the planning director.This is especially true in Hawaii County where the Planning Department has a long history of corrupt practices, long wait times,and limited resources. Fines should not be implemented until the homeowner has had the opportunity to appeal them and have their appeal fully adjudicated. In short,we ask that you leave Hosted Rental operators,small farms trying to make ends meet alone. Let us continue to make a living,supplement our incomes,save our homes,grow our crops for the community,all while offering tourists unique lodging options they simply cannot get with a hotel-especially in low income,food insecure locations like Kau who do not have any other viable lodging options.At the very least,wait for the results of the Economic Impact Study we were promised and follow the law and convention when a bills fails at the County Council saying it should not be re- introduced for two years. Let's not let a technicality brought forth by Heather and Ashley put thousands of families at financial risk, bankruptcy,foreclosure, small farms out of business,etc to appease the hotels and resorts without due process.We ask that you put a stop to this bill for the time being. Let us rest after the years long of undo stress caused by the previous,very unpopular bill and Heather and Ashley's non-stop attacks to appease the hotels and resorts. Before I end this necessarily lengthy email, I would like you to put yourself in this position.You or your elderly parents bought a home many years ago and due to the economy could not afford to live in the home without renting their Ohana to make ends meet.They are still struggling but getting by, running their small farm,and living a happy life.then,after 15 successful years,are faced with losing their home,going bankrupt, losing their small farm,due to Government greed and an unfair,inequitable bill passed designed to help the hotels and resorts simply because they are renting their unpermitted ohana on their small farm like they have successfully for the last 15 years. Now,you or your elderly parents can no longer afford to live here and are too old to start over. Before the bill passed,they were making ends meet and enjoying retirement-after the bill passed,they become part of the homeless population or simply have to move off Island. Isn't the"guise"of the bill to make more affordable housing so long time residents can afford to live here(which certainly didn't work on Oahu!)?We all know that is not the actual goal of the bill but if they want to claim it is, leave the residents alone to make ends meet on their property and go after those that get complaints, have low reviews, not paying their taxes,etc. Thank you in advance for reading my opposition, putting a stop to this bill,and letting local residents relax and enjoy life without the constant abuse, stress,and anxiety. Let it rest for at least a couple years giving ample time for the Economic Impact Study and making a bill that is fair and equitable. Mahalo, A concerned long time resident and 100%5 star rated hosted rental that does not want to share our name for fear of retribution by the powers that be(AKA Heather Kimball and Ashley, Planning Department,etc). 3