2024-04-15 Bill 121 Nathan Eggen

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From: Nathan Eooen To: LPCtestimony Subject: Testimony Regarding Bill 121 Date: Monday,April 15,2024 4:29:29 PM Chairperson Barbara Defranco Leeward Planning Commission County of Hawai'i 25 Aupuni St. Unit 1502 Hilo, HI 96720 Aloha Chairperson Defranco& Commission Members, As a property owner on agricultural land in North Kohala, I am reaching out to express my concerns regarding Hawaii Bill 121. This bill presents significant problems, and I do not support it for several reasons detailed below: First,the bill will make it very difficult for the majority of resident-owned vacation rentals in small towns and rural areas with agricultural zoning to continue operating, effectively outlawing them. While the bill states it allows an owner in any zone to register at any time,the additional rules and restrictions for agricultural land make this practically impossible. The regulations regarding which parts of your agricultural property can be rented and where you can sleep mean that most ag zone rentals will be prohibited. This is particularly impactful because it is common to rent out a 2nd structure in rural areas where more land is available and second dwellings are common. This would eliminate 90% of the resident-owned hosted rentals in North Kohala, which will profoundly impact the local economy. This pattern will likely repeat in every small town area on Hawaii Island. Many kupuna rely on renting their ohanas on their property through Airbnb as their sole source of income. This practice of renting out ohanas to visitors has existed long before Airbnb or the internet. Dictating which parts of your property you can rent or which bedroom you can sleep in is an example of government overreach. As you may know, agricultural zoning makes up about 48% of the entire island. Preventing existing resident-owned vacation rentals from operating in these rural areas means that the visitor economy in the smaller towns of Hawaii County will collapse,leading to further tax revenue decline and job loss at restaurants, stores, and other venues as they shrink or close. Towns such as North Kohala, Kau, Hamakua, and Puna have no resort areas,yet their retail stores and restaurant options are almost entirely visitor-supported. These small towns were struggling badly for decades after the end of sugar production. The visitor economy is their primary source of revenue. Residents of Hawai'i should be able to participate in the high-value tourism activity of providing lodging to guests instead of working for mainland corporations for low wages. Furthermore, the bill will lead to job losses and reduce tax income from supporting businesses that work with Transient Accommodation Rentals (TARS) such as cleaners, landscapers, construction, and maintenance jobs due to the shrinkage of this market. Second, because of these economic risks, it is imperative that an economic impact study