Loading...
HomeMy WebLinkAboutOtsuka, DellPUBLIC TESTIMONY. IN OPPOSITION TO THE RUSHED PASSAGE OF MII [.JI ., 147/1131ILL 197 TO: Hawai'i County Council REGARDING: 111iillll 147 & Bill 197 (Transient Vacation Rental & Tax Amnesty Framework) POSITION: STRONGLY OPPOSED to the Rushed, Lame -Duck Process Aloha Chair and Council Members, My name is Dell Otsuka, and I am a resident of Keaukaha and a beneficiary living on Hawaiian Homelands. I am submitting this testimony to call out again, the deep double standard and legal deception currently moving too quickly through this legislative body. This Council must take heed of the 4-5 vote that came out of the Policy Committee on October 6th. Bill "1 7 is advancing to this floor with a formal unfavorable recommendation. That means that your majority knows and recognizes that this legislation is deeply flawed and that public outcry is justified. The county recently published a very "pretty but deceiving" analysis. The informational flyer titled "Il iiillll 141T Transient Vacation Rentals talr fz"xplained features ea ud fd11 iii ll 11 u tira t iii o iti of Il a 111 fir m trees, a sa iii 111 11 oa t, and neat dirde taIll4in about "alliigiiniinent ... ..coiinpllliiance," and "d ellpairtiinen°t 111 Ipractice" while masking a hostile enforcement framework. It is visually appealing, but it is deeply deceiving. This flyer framed Bill "17 and its sister bill, Bill 197, as a done deal, which it is not. Looking at the facts: -The Legal Deception of Premature Amnesty: Bill 197 offers "forgiveness and amnesty" to resident hosted operators for violating rules that have not yet passed. Bill "17 is still a proposal. Pushing an amnesty framework right now is a psychological and tactical trap designed to force local families into signing paperwork admitting to a "violation" before the law is even enacted. What violation in what law is that for? This is a clear attempt by a lame -duck block to force a massive zoning agenda through before a new council takes office in December. -The Factual Rebuttal to Communication 1082 (Bill 1 7): Explicitly refutes the myth that local resident hosts have been "skating through." It must remind the council that these hosts followed the laws the county created. They generated substantial revenue via the 11.00% State TAT and 4.712% combined GET and County Surcharge. -The Crushing Penalty Scales: Exposes the aggressive $5,500 to $10,000 fine stairs (IBiiullllll "17) and the threat of charging hosts twice their nightly rate while they are trapped in a county -created registration bottleneck. The proposed penalty scales are completely distorted because the county is using a `one -size -fits -all' sledgehammer. Your official data shows that West Hawai'i controls nearly 90% of the vacation rental inventory, commanding an average daily rate of $379 a night. Meanwhile, East Hawai'i communities like Hilo and Puna have a fraction of that market, with average rates in Pahoa dipping down to just $168 a night. When you set a baseline penalty at $5,500 for a first offense and escalate to $10,000 per day, you are leveling a fine structure designed for a luxury oceanfront estate in Kona against a local family in Hilo or Puna who is renting a studio just to make ends meet. A $10,000-a-day fine equals 60 nights of income for a local Pahoa host. This calculation isn't just mathematically unfair; it is predatory to the local families on the East side of this island. -The Agriculture Land Realities: Details how the county is aggressively trying to map and restrict "Special Permit Required" pathways on State Land Use Ag lands and farm dwellings. -'Rosehill v State of Hawai'i Supreme Court' decision, was meant to .stop wealthy off -island investors from building fake ad eg .wig ' sio ' s" on ag land and renting thein out completely unhosted like commercial resorts. This council is using that ruling as an excuse in Bill 747 to crush hosted agritourism, where actual local farmers live and offer educational farm stay experiences. w SMALL, rARMS WORLDWIDE SURVIVE THROUGH C T' Did you know that? 60% of the Big Island is zoned for agriculture. "What happened to "support our local farmers and food security." They are the ones you are hurting initially. Then there are all of us who are trying to "buy local and eat more healthy." -The "Prima Facie" Evidentiary Trap: The text introduces a "guilty until proven innocent standard. If automated software finds any old or mistaken online text regarding a property, the county considers it 100% proof of an illegal rental. Is that correct? The burden of proof shifts to the resident. Local families will be penalized first and forced to fight a blind (flawed) machine later. Furthermore, these few unique properties cannot possibly solve a systemic housing shortage. Rather than developing actual long-term, affordable housing infrastructure, this council is penalizing local families trying to make an honest living, and since you should have a list of those not in compliance, "illegal," then go and take care of those before "attacking" the law-abiding families and local operators. This council consistently grants itself multi -year passes for its own major systemic operational deficiencies. -Killing Local Revenue Under the Guise of Regulation: These hosted operators are not out-of-state corporate investors; they are resident families renting a spare room or an `ohana unit' trying to survive inflation. They have already paid their fair share, generating millions for this island through the 11.00% State TAT and 4.772% GET and County Surcharge on every booking. Forcing them into commercial property tax reclassifications won't result in a property tax windfall -it will simply cause them to stop hosting entirely, completely wiping out the steady TAT revenue they already provide. So inuch foryour long.-terin housing g ment You will succeed in the loss of multiple housing options for shorter -stay visitors like your traveling workers (your proposed and unreasonable 780 days' trap), lower visitor count (definitely) loss in guaranteed millions in State and County revenue (definitely) and more distrust in our local government, most definitely. -The County's Glaring Double Standard: As a Hawaiian Home Lands resident, I've watched this aggressive push to map and re -zone our island with deep distrust. The county demands immediate, overnight compliance from small resident hosts under the threat of crushing fines. Yet, Papa'ikou and Kula'imano Wastewater Treatment Facilities in District 1, have faced severe federal EPA crackdowns for chronic pollution into our ocean for years, yet this Council and the County voted to extend its own repair timelines out 3 and 5 years. One can only imagine what state these wastewater facilities will be in in three years, let alone five years, and the irreversible damage of more pollution to the fishing sites off the coast and its residents who rely on them. previously "toured" these facilities when I served as a Commissioner on the Environment Commission (EMC). In a facility that should've had at least three, there was only one ... and that was the norm. I did raise safety issues ... you can go and figure that one out. Chronic staffing issues? How many of you council members have gone and visited these sites? If you had seen the understaffed, dangerous reality, you wouldn't have thought twice about an extension -denying it would have been a no-brainer. Because you voted to delay your own responsibilities while rushing to penalize local families, I can only deduce that you still haven't looked. If the County can give its CRIPPLED AND DYING WASTEWATER FACILITIES A MULTI -YEAR PASS TO COMPLY TO MULTIPLE EPA AGREEMENTS OF CONSENT, it has absolutely NO RIGHT TO RUSH, PUNITIVE, CONFUSING MANDATES ONTO LOCAL FAMILIES. STOP HIDING BEHIND PRETTY GRAPHICS AND DECEPTIVE TIMELINES. DO NOT ALLOW THIS LAME -DUCK VOTE TO CARRY WITHOUT A TRANSPARENT, FAIR PROCESS. Just a note ... if you want us to know what you know, to make the only kinds of decisions that impact and affect ALL of us, then please provide all pertinent and relevant data to us and let us truly be a part of this process. So that when public testimonies are given, those three minutes might just prove to be the turning point for building trust. Is that too much to ask? I urge this Council to halt this rushed progression and protect ALL 210,043 of our Island's population and the 1.70 to 1.75 million visitors annually with laws that actually benefit us, all of us. And fix what is known to be broken first. VOTE NO ON IIRll[.Jl ., "1 7 AND NO ON BILL 197. Mahalo, Dell Otsuka, Keaukaha Former Environmental Management Commissioner