HomeMy WebLinkAboutCOM 0997.006 2016-2018 P/Oowtcil
•� 1401
From: Wayne Wilkinson
To: Council Testimony
Cc: Poindexter.Valerie;Chung,Aaron; Lee Loy,Sue;Ohara,Eileen; Ruooles,Jennifer; David. Maile; Kanuha,Dru;
Eoff.Karen; Richards,Tim
Subject: Bill 108-council testimony
Date: Sunday,September 16,2018 5:57:32 PM
September 16, 2018
a
o
County of Hawai'I
Leeward Planning Commission VIA. c)
EMAIL
w D�
Attention: Keith F. Unger—Chair
Chairman Unger,
My wife Dawn Wilkinson and I own a home in Kailua-Kona on Kueni Place above
Pualani Estates. We have operated the home as a vacation rental since purchasing the home, it
is registered as an LLC with the state of Hawaii. In addition to paying our property tax as a
homeowner we have paid GET and TAT taxes since inception of our LLC, which the state has
benefitted from. Using our eight months actual figures and projecting them out through the
end of the calendar year 2018 we will pay over$5,800 in GET and nearly $14,500 in TAT,
which is not immaterial. Also, the property management company will earn approximately
$35,000 from our property,pay taxes on that income and employ residents to clean, maintain
and market our property.Multiply this by the thousands of vacation rentals on the Island
and there is a material tax and employment benefit.
As a former Ironman, we were attracted to Kona based on its beauty, diverse
community offerings and the fact that we could purchase a property that could be a vacation
rental until we were able to retire there in a few years. We plan and look forward to retiring in
Kona, but will not be able to bridge the gap between that time without the income of the
vacation rental we now operate. If Bill 108 changes our ability to operate, we will likely have
to sell the property and possibly sell it quickly at a reduced price impacting our market price
and that of homes around us. We would essentially have to rethink our retirement plan and
take what remaining equity we may be able to salvage and invest it in another market that
would be friendly towards vacation rentals allowing us to continue our personal & financial
plan. Our projected net revenues (after management fee) on our property this year is roughly
$90,000.If someone took$90,000 of income away from any of you overnight, it would cause
you financial hardship. Why would the counsil members believe that would not be the case
Comm. `-1�No. • T
Ref. To: P f Counab
Ref. Date SLY 1 8. LA
for anyone operating a vacation rental property given some of the proposed parts of Bill
108?
We understand the some of the reasons Bill 108 is being sponsored and we support
some of the changes such as registering a vacation rental, charging an annual fee for
operating and the need for all operations to comply with all other laws in place.
We object to the need to notify anyone within any distance. This requirement is
extremely complex for multi-tenant(high density) locations and could cause some people to
have notify hundreds and possibly thousands of adjacent homes. It will unquestionably lead to
some of the notified within any distance objecting and bog down everyone in an endless
process of sorting through objections.I strongly encourage you to remove this portion of the
bill. We also object to recommendation 14 which would require homes or condo's to retrofit to
meet commercial standards for exit signs and sprinklers. This would be a crippling to cost to
the vast majority, if not all the condo's and single-family homes and likely force most to
rethink operating as a vacation rental. I know we could not afford the cost to do so at our home
and as I said previously that would cause us to likely sell our home. This single
recommendation could cause hundreds, maybe thousands of homes to be listed for sale at
once, causing home prices in Kona to fall precipitously based on a glut of homes on the
market. This wouldn't just impact those who chose to sell their home/condo's that were
vacation rentals, it would impact everyone on the Island.I would strongly encourage you to
remove such a requirement as written in recommendation 19.
Finally, if there are any zoning restrictions for operating vacation rentals to be
considered,I would strongly request the counsel to grandfather all existing vacation rentals
and allow them to legally register their property prior the Bill becoming law.
Vacation rentals create and support many jobs on the island. They provide material
tax revenues for the region and provide a desirable option for visitors to the island. Vacation
rentals are a VERY COMMON way that many now travel and stay.If the Island eliminates
vacation rentals or makes operation of vacation rentals cost prohibitive it could very well
lead to decreased visits to the Big Island;I would assume that would not be desirable..
I appreciate you taking the time to listen to our situation and.I hope that the planning
commission and Bill 108 can find a common ground that provides the control over vacation
rentals that you seek, in a manner that works for the owners that operate them and consumers
that prefer them when they visit the island.
Mahalo,
Wayne &Dawn Wilkinson
76-833 Kueni Place
Kailua-Kona, HI
Cc: Counsil members