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Home My WebLink About2024-04-03 PL-CCI-2024-000003 Bill 121 Nicole and Gabrielle Naughten From: Hale"Ohu Bed&Breakfast To: W PCtesti mono Cc: reservationsCabhaleohu.com Subject: Planning Commission Meeting Document Date: Wednesday,April 3,2024 11:56:46 AM Attachments: Bill 122 Testimony 4.3.24.odf Please accept the attached document for inclusion in tomorrow's Windward Planning Commission Meeting regarding Bill 122 that will be discussed. Mahalo, Nicole and Gabrielle Naughten Owners/Innkeepers Hale 'Ohu Bed & Breakfast 19-3896 Old Volcano Road Volcano, HI 96785 P: +1.808.731.5243 E: reservations(&haleohu.com W: www.haleohu.com (j:j:''A9:%) Hale 'Ohu April 3, 2024 To: Hawaii County Planning Commission Sent via email to: WPCtestimonv@hawaiicounty.gov Re: Bill 122 We are writing in response Bill 122 to submit testimony for the April 4 Planning Commission meeting. In addition to this written testimony, we have attached to this letter the written testimony we provided to the January 23 meeting on the proposed TAR bills to the Hawaii County Council Policy Committee on Planning, Land Use, and Development. In reading the Planning Department Background and Recommendation document dated Feb. 9, 2024, we are pleased to see Recommendation #2 that existing Bed and Breakfasts be allowed to continue to operate by special permit or a use permit. It is imperative that this statement be included in a revised Bill 121 as a permitted B&B is NOT a vacation rental and should not be conflated with that subsection of rental accommodations. To clarify further, we operate as a business, not providing transient accommodation as a secondary income. Our business is our primary and sole income. It would behoove a revised bill to include B&Bs as a separate section as such. Additionally, it should be noted that most permitted B&Bs do not have cooking facilities and should again be separated out noting that difference with vacation rentals. It was clear what regulations B&Bs needed to adhere to in our special permit(County code), but those regulations seem to be mostly omitted in Bill 121. Short of NOT removing B&Bs from Chapter 25-4-7 (which would be our preference), those regulations should be included in a revised Bill 121 under a section dedicated to permitted B&Bs. We welcome a methodology for the County to collect information and track all types of transient accommodation rentals including their tax license numbers.This would go a long way in transparency not only for the County to know who or what is operating in the County, but for operators to know who is permitted to operate a TAR. Thank you for taking the time to read our letter and consider our suggestions. Mahalo, Nicole and Gabrielle Naughten Owners/Innkeepers Hale 'Ohu Bed & Breakfast reservations@ haleohu.com 19-3896 Old Volcano Road • PO Box 2102 • Volcano, HI 96785 • +1 808.731.5243 • www.haleohu.com (J:i:''A9:%) Hale 'Ohu January 21, 2024 To: Hawaii County Council Policy Committee on Planning, Land Use, and Development Sent via email to: counciltestimony@hawaiicounty.gov Re: Opposition to Bills 121 and 122 We are writing to oppose Bill 122 that would eliminate legally recognized Bed & Breakfasts (B&B) and include B&Bs under newly proposed Bill 121 relating to Transient Accommodation Rentals (TARS). In 2016, we fulfilled our lifelong dream to purchase a B&B and run it as a family operation. We purchased a long-established B&B in Volcano Village along Old Volcano Road which had an inn license to operate ten rooms which we amended to a B&B permit (Special Permit#966) to operate up to five rooms. In making this major life change, we moved our entire life to Hawaii which included leaving our jobs and spent much of our life savings on this new exciting venture. Our B&B is our sole source of income and it feels like the County wants to put us out of business. Running a small business is not an easy feat. We have dealt with the 2018 eruption that closed the national park for four months. As the primary reason for visiting Volcano is the park, this was a huge downturn for our business. Then, the pandemic hit and the same scenario occurred. Lastly, with the Maui fires and the high inflation perception, we saw a significant drop in guests from mid- 2023. What is the point of eliminating B&Bs in Bill 122?As you probably know, traditional and legally permitted B&Bs are not vacation rentals i.e. AirBnBs. AirBnB is a company that has co-opted the term B&B and created the perception that a B&B is a short-term vacation rental. That is simply NOT true! The AirBnB concept has nothing to do with a real B&B. Plus, their platform does not allow B&Bs to collect sales taxes. It is unfair for real B&Bs, such as ours, to be included with vacation rentals. We operate like a hotel. We currently adhere to all rules and regulations in Chapters 25 and 14, Article 4, Section 14-20 of the Hawaii County Code. If there are B&B properties not adhering to these regulations, enforcement should be the responsibility of the County. The self-reporting component of this legislation does not fix the lack of previous oversight and enforcement by the County. 19-3896 Old Volcano Road • PO Box 2102 • Volcano, HI 96785 • +1 808.731.5243 • www.haleohu.com (j:j: ''A9:%) Hale 'Ohu 'fed & Breakfast Our B&B consists of three one bedroom, one-bathroom units. These units do not have kitchen facilities as a short-term vacation rental would include. Additionally, each room has its own private entrance. We live onsite and manage all aspects of the business. We would welcome the Council to come by for a visit so that we can show you how a traditional B&B operates. These rooms would never be suitable for long-term housing if that is the reason to eliminate B&Bs. Since 2017, our small B&B has collected $81,587.54 in GET, TAT and HCTAT taxes. We have also paid $28,596.59 in Hawaii county property taxes. Additionally, we estimate that our guests spend hundreds of dollars eating out during their stay since we do not offer kitchen facilities. Also, we pay local people for lawn, gardening and maintenance work who, in turn, spend this money locally. Can the County really afford to lose these revenue sources from B&Bs? We are curious how the Council drafted these proposed changes? Did you have a working- group that included STVRs, B&Bs and Hotels? Do you recognize the economic impact on the Volcano community as a whole? Without visitors staying overnight, many people and services will leave. Volcano will become a ghost town similar to how it felt in 2018 and 2020. Small businesses are the backbone of any local economy, but Hawaii County seems not to be supportive of small businesses. Trying to solve the shortage of affordable housing would be better served with more favorable zoning and planning changes to attract developers. The lack of apartments, especially in Volcano, is shocking. Please reconsider eliminating B&Bs for the sake of the sustainability of Volcano Village's future! Mahalo, Nicole and Gabrielle Naughten Owners/Innkeepers Hale 'Ohu Bed & Breakfast reservations@haleohu.com 19-3896 Old Volcano Road • PO Box 2102 • Volcano, HI 96785 • +1 808.731.5243 • www.haleohu.com