HomeMy WebLinkAboutPD Background & Recommendation Report (PL-CCI-2024-000004) Bill 122 BR-CClnitiated-B&BRepeal.doc 2/19/2023
COUNTY OF HAWAI`I PLANNING DEPARTMENT
BACKGROUND AND RECOMMENDATION
COUNTY COUNCIL INITIATED BILL NO. 122 (PL-CCI-2024-000004)
AMENDMENT TO CHAPTER 25 AND CHAPTER 14,ARTICLE 4, SECTION
14-20, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION,AS
AMENDED),RELATING TO THE REPEAL OF BED AND BREAKFAST AS A
PERMITTED USE
The County Council has referred Bill No. 122 to the Planning Director and the Windward
and Leeward Planning Commissions for comments and recommendations.
PURPOSE OF BILL NO. 122
1. The Hawaii County Council has introduced Bill No. 122 (Planning Department
Exhibit 1),which seeks to amend Chapter 25 (Zoning Code) and Chapter 14
(General Welfare), Article 4, Section 14-20 of the Hawaii County Code 1983
(2016 edition, as amended), relating to the repeal of bed and breakfast(B&B).
2. The purpose of this amendment is to repeal all provisions that allow for bed and
breakfast establishments as it will be regulated as either an Owner-hosted or
Operator-hosted transient accommodation rental, should County Council-initiated
Bill 121 (Transient Accomodation Rentals)be adopted.
WHAT IS A B&B?
3. A B&B is currently defined as any single family dwelling and/or guest house
(pursuant to HCC section 25-4-9), which have been permitted on a building site,
in which overnight accommodations and only breakfast meals are provided to a
maximum of ten guests, for compensation, for periods of less than 30 days. The
bed and breakfast establishment shall be subordinate and clearly incidental to the
principal use as a residence by its operator and not alter or be detrimental to the
character of the surrounding area. The operator of the bed and breakfast
establishment shall reside on the same building site as that being used for the bed
and breakfast establishment.
WHERE ARE B&Bs CURRENTLY PERMITTED?
4. Bed and breakfast are currently permitted in the following zoning districts:
• Double Family Residential (RD) zoning district;
• Multiple-Family Residential (RM) zoning district;
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• Residential Commercial Mixed Use (RCX) zoning district;
• Resort Hotel (V) zoning district;
• Neighborhood Commercial (CN) zoning district;
• General Commercial (CG) zoning district
• Village Commercial (CV) zoning district
• Downtown Hilo Commercial (CDH) zoning district.
5. B&Bs are also permitted in the following zoning districts as long as a Use Permit
is obtained if the subject parcel is located within the State land use urban district
and a Special Permit is obtained if the subject parcel is located within the State
land use rural or agricultural districts:
• Single-Family Residential (RS) zoning district;
• Residential and Agricultural (RA) zoning district;
• Family Agricultural (FA) zoning district; and
• Agricultural (A) zoning district.
PROPOSED AMENDMENTS TO HCC CHAPTER 25 (ZONING)
6. Bill 122 seeks to amend Chapter 25 as follows:
• Article 1, section 25-1-5,Definitions: Repeals the current definition of
`Bed and breakfast establishments'.
• Article 2,Division 6, Section 25-2-61(1),Applicability; use permit
required: Repeals the need to secure a use permit for bed and breakfast
establishments in RS, RA, FA, and A zoning districts within the state land
use urban district.
• Article 4,Division 1, Section 25-4-7, Bed and breakfast
establishments: Repeals the entire section relating to bed and breakfast
establishments and the standards and requirements for bed and breakfast
establishments which is currently found in section 25-4-7.
• Article 4,Division 5, Section 25-4-51 subsection (a)(2) of Chapter 25,
Required number of parking spaces: Repeals parking requirements for
bed and breakfast establishments.
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PROPOSED AMENDMENTS TO HCC CHAPTER 14 (GENERAL WELFARE)
7. Bill 122 also seeks to amend Article 4, Chapter 14,Definitions as follows:
• Section 14-20: In an effort to provide consistency throughout the County
Code, changes proposed for this section include modifying the existing
definition of`Hotel' to delete the language of bed and breakfast
establishments and to further define `Hotel' as just a"...a transient
accommodation rental. "
AGENCY COMMENTS PROVIDED
8. State Land Use Commission (Planning Department Exhibit 2—February 14,
2024 Memo)
AGENCY—NO COMMENTS/CONCERNS
9. Department of Public Works-Engineering Division, Department of Water Supply,
Police, Department of Health, State Office of Planning and Sustainable
Development
AGENCY—NO RESPONSE PROVIDED
10. Department of Public Works-Traffic Division, Department of Public Works -
Building Division, Department of Environmental Management, Civil Defense,
Department of Parks and Recreation, Fire, Office of Housing and Community
Development, State Department of Agriculture, Department of Research and
Development.
PUBLIC COMMENTS PROVIDED
11. Testimony from Kohala Coast Resort Association (Planning Department
Exhibit 3 —March 26,2024 Email)
PLANNING ANALYSIS OF THE IMPACTS OF BILL 122
In 2018, the County Council passed Bill 108, which regulated short-term vacation
rentals. Since the passing of Bill 108, the Planning Department has been instrumental in
implementing and regulating short-term vacation rentals. While Bill 108 created a set of
operational standards for un-hosted vacation rentals, some modifications were needed to
the code in order to address all types of vacation rentals such as hosted vacation rentals
which have been often confused with bed and breakfast establishments.
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Based on the preceding, in early 2022 the County Council initiated a package of
three (3)bills in an effort to address three key components to effectively regulate
transient accommodations, which included short-term housing in Bill 121, long-term
housing in Bill 123 and Bill 122 which addresses existing similarities between bed and
breakfast establishments and transient accommodation rentals.
Currently the Zoning Code requires an operator(which can be the owner) to
reside on the same building site as the bed and breakfast with no more than five guest
bedrooms for rent and a maximum guest count of 10 at any time. Similarly, Bill 121
(Transient Accommodation Rentals), will require an Owner-hosted and Operator-hosted
transient accommodation rental to have an owner or operator on the building site as well
as require that the transient accommodation rental be located within the single-family
dwelling and be subordinate and clearly or customarily incidental to the principal use as a
residence. It is important to note that the total number of guests that will be allowed
within a hosted TAR will be two for every bedroom and an additional two per dwelling.
Breakfast meals may also be offered to registered guests within a hosted TAR.
While B&Bs are currently permitted in the RD, RM, RCX, V, CN, CG, CV and
CDH districts. A B&B can also be located within the RS, RA, FA, and A district within
the State land use urban district so long as a use permit is obtained and a special permit
for those districts located within the State land use rural or agricultural districts. In
contrast to bed and breakfast establishments, Bill 121 allows for such uses as an owner-
hosted transient accommodation rentals to be allowed within any zoning district as an
outright permitted use while an operator-hosted rental will be allowed in specific zoning
districts.
In addition, Bill 121 requires registration of all types of transient accommodation
rentals as well as annual fee requirements whereas B&Bs in permitted zoning districts do
not require registration fees or have annual renewal fees. Bill 121 goes further to require
change in information and ownership of all operator and owner hosted transient
accommodation rentals be submitted to the Planning Department within a specific
timeframe to ensure that residential areas that will be affected by these uses have a
manner in which they can assist in the regulations of transient accommodation rentals.
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Due to similarities in the way that B&Bs and"hosted"rentals operate and the
duplications between transient accommodation rentals and bed and breakfast
establishments regulations, the County Council found it important to clearly identify one
land use for single-family dwellings operating with a host, as an Owner-hosted or
Operator-hosted transient accommodation rental. Therefore, the County Council went
further to simplify the regulations for these uses which are shown in Bill 121, while
repealing the use of B&Bs as shown in Bill 122. While the County Council is proposing
to repeal all terms of B&B from the Hawaii County Code, it is important to note that this
will not impact current bed and breakfast permit holders in any way.
RECOMMENDATION
The Planning Director is supportive of the intent of Bill 122 and appreciates the
time and effort the County Council has taken to draft legislation. The Director is
recommending two revisions to Bill 122 to address housekeeping changes that are needed
to implement the intent of the bill.
Recommendation #1:
Under Section 7 of the draft bill, consider changing the proposed definition of`Hotel' to
match the definition of`Hotel' that is already in place and found in Chapter 25 which
means "a building or group of buildings containing six or more rooms or suites which
provides transient lodging accommodations, meals, entertainment, and various personal
services for compensation, whether such establishment is called a hotel, motel, motor
hotel, motor lodge, inn, or otherwise. "
Reason: These definitions are important because most definitions embody the law.
Therefore, if there are two definitions of`Hotel' that are found in our Hawaii County
Code, then there is no clear guidance regarding how a Hotel is to be understood and/or
regulated. The intent of Bill 122 is to clarify any duplications, therefore, by ensuring that
the definition of Hotel matches other definitions of Hotel within the code, then it provides
clear and conciseness for staff as well as members of the public to adhere to.
Recommendation #2:
Recommend adding language in Bill 121 (Transient Accommodation Rentals) that would
allow the continued operation of existing bed and breakfast establishments that were
permitted by a special permit or a use permit prior to adoption of Bill 121. There have
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been several hundred B&Bs permitted in the past by the Planning Commissions that
should be allowed to continue operating if this bill is adopted and B&B provisions of
code are repealed. Many of these permits (including the enclosed example) (Planning
Department Exhibit 4 -Special Permit for a B&B)require that the B&B operate
according to the B&B standards currently found in section 25-4-7 of the zoning code,
which are proposed to be repealed. If this section of code is repealed, there will be no
standards for the B&B to operate within.
Reason: The Planning Director is recommending that there be language added to Bill
121 (Transient Accommodation Rentals)that would allow for the continued operation of
these existing B&Bs per the conditions of the use permit or special permit and the good
neighbor standards proposed in Bill 121. Bill 121 should also indicate that use permits
and special permits for existing B&Bs cannot be amended since bed and breakfast
establishments will no longer exist in the code should Bill 122 be passed.
For the reasons detailed above, the Planning Director recommends that the
Planning Commissions send a favorable recommendation of Bill No. 122 to the
County Council with the suggested revisions recommended by the Director.
PLANNING COMMISSION ACTION
The Windward and Leeward Planning Commissions are required to take action on
Bill 122 as described in Section 25-2-43(b) of the zoning code (Planning Department
Exhibit 5). This bill was transmitted by the County Council to the Department on
January 30, 2024, which means the commissions are required to transmit their
recommendations to the council by May 29, 2024. The commissions may recommend
approval of all, some, or none of the Director's suggested recommendations. The
commissions may also recommend their own revisions to the bill. The Windward and
Leeward Planning Commission's recommendations will be forwarded separately, but at
the same time, to the County Council for their consideration and decision. In the event
the commissions fail to act on the proposed bill by this date, such inaction shall be
considered as an unfavorable recommendation by the commissions.
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Ashley L. Kierkiewicz (808)961-8265
County Council District/Y JMtv;os M4 ashley.kierkiewicz@hawaiicounty.gov
o.
Policy Committee on Planning _ Policy Committee on Infrastructure
Land Use and Development—Chair and Assets—Vice Chair
C904- PANNING EDIEPT
HAWAI`I COUNTY COUNCIL ti AN 3.0 9094 pHQ:94
Hawaii County Building
25 Aupuni Street • Hilo,Hawaii 96720
L_1.L
TO: Zendo Kern, Director
Planning Department
FROM: Ashley L. Kierkiewicz, Council Member
DATE: January 30, 2024
SUBJECT: Referral of Bill 122; an Ordinance amending Chapter 25 and Chapter 14, Article
4, Section 14-20, of the Hawaii County Code 1983 (2016 Edition, As Amended),
relating to the Repeal of Bed and Breakfast as a permitted use.
Pursuant to Section 25-2-43(b) of the Hawaii County Code, I am submitting Bill 122, enclosed for
your comment and recommendation. I also request that you forward the same to the Windward and
Leeward Planning Commissions for their comment and recommendation.
Bill 122 was referred for comment and recommendation to the Planning Director and the Windward
and Leeward Planning Commissions by the Hawaii County Council's Committee on Planning on
January 23, 2024.
After your and the Commissions review, please forward your comments and recommendations to
Council Chairperson Heather Kimball.
Thank you for your attention to this matter.
Enc.
AK/kj
Planning Dept.
Exhibit�
Hawai`i County Is an Equal Opportunity Provider and Employer
COUNTY OF HAWAII STATE OF HAWAI`I
rT�ui,N►'��
BILL NO. 122
ORDINANCE NO.
AN ORDINANCE AMENDING CHAPTER 25 AND CHAPTER 14,ARTICLE 4,
SECTION 14-20, OF THE HAWAI`I COUNTY CODE 1983 (2016 EDITION,AS
AMENDED), RELATING TO THE REPEAL OF BED AND BREAKFAST AS A
PERMITTED USE.
BE IT ORDAINED BY THE COUNCIL OF THE COUNTY OF HAWAI`I:
SECTION 1. Chapter 25,article 1, section 25-1-5, of the Hawaii County Code 1983
(2016 Edition, as amended), is amended by repealing the definition of"Bed and breakfast
establishment":
" "Bed and br-eakfaStestablislifn " family dwellings d/
vvaiaYeaa.,u uv+i, av r•eI^S'oi'less fthan r[IIITTT'CZAyS.]
SECTION 2. Chapter 25, article 2, division 6, section 25-2-61, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection(a)to read as
follows:
"(a) The following uses shall be permitted within designated County zoning districts only if a
use permit is obtained for the use from the commission:
[(1) Bed and breakfast establishments in RS, PA, FA, and A distfiets, provided that the
pfepefty is within the state land useurban distr-iet.
(4]LD Crematoriums, funeral homes, funeral services and mortuaries in RS, RD, RM,
RCX, RA, FA, A and V districts.
[(311(2) Churches,temples and synagogues, including meeting facilities for churches,
temples, synagogues and other such institutions, in RS,RD, RM, RA, FA and A
districts; provided that a minimum building site area of ten thousand square feet is
required within the RS, RD, RM, and RA districts.
[(4)1(3� Day care centers in RS, RD, RM, RA, FA and A districts,provided that a
minimum building site area of ten thousand square feet shall be required within the RS,
RD, RM, and RA districts.
[(5)](44, Golf courses and related golf course uses including golf driving ranges, golf
maintenance buildings, and golf club houses in the RS, RD, RM, RCX, RA,FA,A, V,
CG, CV, and 0 districts, provided that the property is within the state land use urban or
rural district. Golf courses and golf driving ranges shall not be permitted within the
state land use agricultural district unless approved by the County before July 1, 2005.
[(6)](5) Group living facilities that exceed the criteria in subsection 25-1-5(b),paragraph
(b) of the definition of"group living facility" in the RS, RD,RM, RCX, RA, FA, A,
CN, CG, CV, and V districts.
[(-7)]M Hospitals, sanitariums, old age, convalescent, nursing and rest homes in the RS,
RD, RM, RCX, RA, FA,A, and V districts, provided that a minimum building site area
of ten thousand square feet shall be required within the RS, RD, RM, RCX and RA
districts.
[(8)](7) Major outdoor amusement and recreation facilities in RCX, RA, A, CN, CG, CV,
MCX, ML, MG and 0 districts.
[(9j] Medical clinics in RS, RD, RM,RA, FA, and A districts.
Schools in RS, RD,RM, RA, FA, A, V, MCX, ML, and MG districts,provided
that a minimum building site area of ten thousand square feet shall be required within
the RS, RD, RM, and RA districts.
[(-1 ] 10 Telecommunication antennas and towers in RS, RD, RM, RCX, RA, FA, A, IA
and 0 districts.
[(1-2)]LU1 Yacht harbors and boating facilities in the RS, RD, RM, RCX, RA, V, CG, CV,
MCX,ML, MG and 0 districts.
[(-p3)](121 Wind energy facilities in the 0 district; provided that the property is within the
state land use agricultural district.
["]CU3 Other unusual and reasonable uses which are not specifically permitted in any
zoning district with the approval of the director and the concurrence of the council by
resolution."
SECTION 3. Chapter 25, article 4, division 1, section 25-4-7, of the Hawaii County Code
1983 (2016 Edition, as amended), is repealed.
"[Seetien 23 4 7. Bed and brealdastestablishments—.
(a) Bed and breakfast establishments shall be pefmitted in the RD,, RA4, RGV V, CN, G, GV
and GDH district•. A bed nr�d breakfast establishfner,+..may be p r.....itted in the RS aistFiets
� J !1 VLLL Ul1LL V1tU117 G1
and RA, FA, A districts, within the State landuse urban distfiet, pr-evided that a use pei:fnk
is obtained for eaeh sueh use. A speeial pefmit shall also be required for any bed and
breakfast establishment leeated in either-the SteAe land use Fufal E)r-agfieultur-al distfiets.
(b) A ,1 breakfast sme + se su et to the following r .1llLLll .1
a establishment shall b bju .icucas-
ineiden4,1 + the Yrr e' 1 pal use " t,silo its aper-atof a not ltef or-L
(2) The epefa4er-ef the bed and bfeakfast establishment shall reside en the same building
site as ------b--~a .._..._.,. ...e bed.......breakfast VJlt4V 11J11111L11<.
(3) The bed and breakfast establishment may be leeated en a building site, within any
single family dwellkig , and/nr guest h (pufstiafA tw JLlt1V1 25 4 9)
(4) The bed and keakfast establisih-nent shall eefi4ain ne ffier-e than five guest bedr-aems
fbr-Fent to guests.
(5) The Enaximuffi number-of guests pefffit." hin a bed edid breakfast establishment
any one tifne hall be+
2
(6) Only breakfast meals may be effe�ed te guests. The serving of breakfast meals en4hee
building site f f to di ' t other-than + guestsshall b pfol bit ,7 A
a ,1 6•o wia.ud
b a nd hrp�Ef st establislunen+ t~ Y as 11 + + food establishment /'
restaidfant unless sueh
/a iJ «emu use
(7) One paved (with materials stieh as within the zoning distr-iet and the
pa-vers, stenes) off-street par-king stall shall be pr-evided for-eaeh guest bedfoeffl,
1
in addition to the required stall(s) for-the dwelling + exeep+that in the 17 o RA,
) A FA
7
and A distriets paved parking stalls shall net be fequifed as leng as the matefial tised
for the pafking stalls will eliminate erosion, Enud and sianding water-within the parking
stall
shall eamnly with the r-equir + ' at' + F ft ehaptef 3
(adveAising and Y iva1 az
eCode.
rnn�i iefed illegal d�.a this apte unless t noted herein.
£j uz .,1, ,
(d) Amy bed and breakfast establisIhment existing as of the effeetive date of this seetion and
eenfefmin
p to the standafdsevaatuaaati.
fellewing the effeetive date ef this seetien. Aftef this da4e, eentinued usee vnithout having
subfniAed the neeessafy peffnit applications shall be eonsidefed illegal under-this ehaptef.
nrio the "deptien of this sr+r+' shall eepAinueto apply to the bed d b / f +
]"
SECTION 4. Chapter 25, article 4, division 5, section 25-4-51, of the Hawaii County
Code 1983 (2016 Edition, as amended), is amended by amending subsection(a) to read as
follows:
"(a) The number of parking spaces for each use shall be as follows:
(1) Agricultural tourism: one for each three hundred square feet of gross floor area used
principally for the agricultural tourism activity, but not fewer than three spaces,plus
bus parking if buses are allowed.
(2) [Bed and bfeakfast establishments! ene-fer- µet, guest b d ' i1iadditioR+ f
ef
the dwelling unit.
.
(3)] Bowling alleys: four for each alley.
[(4)]0j Commercial uses, including retail and office uses in RS, RD, RM, RCX, CN, CG,
CV, MCX, V, RA, FA, A and IA districts: one for each three hundred square feet of
gross floor area.
[(5)]t4� Day care centers: one for each ten care recipients of design capacity or one for
every two hundred square feet of gross floor area, whichever is greater.
[(6)](Q Dwellings, multiple-family: one and one quarter for each unit. In the CDH district,
one for each unit on a property maintaining a unit density higher than one thousand
square feet of land area per rentable unit or dwelling unit.
3
[(�)]& DwelIings, single-family and double-family or duplex: two for each dwelling unit.
In the CDH district, one for each unit on a property maintaining a unit density higher
than one thousand square feet of land area per rentable unit or dwelling unit.
[(8)](D Dwellings, single-family and double-family or duplex that are occupied for any
period of less than one hundred eighty days: one space for each rented bedroom in
addition to one space for the dwelling unit if rooms in the dwelling unit are rented
individually, or two spaces if the dwelling unit is rented as a whole.
[M](8) Funeral homes, funeral services,mortuaries, and crematoriums: one for each
seventy-five square feet of gross floor area.
[(48)1(9) Golf courses: four for every hole.
[(44)](1LO) Hospitals: one for each bed.
[(1 J 11 Hotels and lodges:
(A) For hotel guest units without a kitchen, one for every three units;
(B) For hotel guest units with a kitchen, one and one quarter for each unit.
["1 12 Industrial uses in ML, MG, MCX, RA,FA, A and IA districts: one for each four
hundred square feet of gross floor area.
["] 13 Laundromats, cleaners (coin operated): one for every four machines.
["]CU4 Major outdoor amusement and recreation facilities: one for each two hundred
square feet of gross floor area within enclosed buildings, plus one for every three
persons that the outdoor facilities are designed to accommodate when used to the
maximum capacity.
[(-1-6)] 15 Meeting facilities, including churches: one for each seventy-five square feet of
gross floor area.
[(17)] 1(^6� Nursing homes, convalescent homes, rest homes and homes for the elderly: one
for every two beds.
[(l-$ ](17) Parks: as determined by the director.
[(1-9)](18) Recreation facilities, outdoor or indoor, other than herein specified: one for each
two hundred square feet of gross floor area, plus three per court (racquetball, tennis or
similar activities).
[(2-)]LU9 Rooming and lodging houses, religious, fraternal or social orders having
sleeping accommodations: one for each two beds.
[( }] 20 Schools (elementary and intermediate): one for each twenty students of design
capacity, plus one for each four hundred square feet of office floor space.
[(22)] 21 Schools (high, language, vocational, business, technical and trade, college): one
for each ten students of design capacity,plus one for each four hundred square feet of
office floor space.
[(23)] 22 Sports arenas, auditoriums,theaters, assembly halls: one for every four seats.
[(24)] 23 Swimming pools (community): one for each forty square feet of pool area.
[(2-5)]kL41 Warehouse and bulk storage establishments where there is no trade or retail
traffic: one for each one thousand square feet of gross floor area."
4
SECTION 5. The following provisions of the Hawaii County Code 1983 (2016 Edition,
as amended):
Chapter 25, article 5, division 1, section 25-5-3, subsection (b), (relating to RS, single-
family residential districts);
Chapter 25, article 5, division 2, section 25-5-22, subsection(a), (relating to RD, double-
family residential districts);
Chapter 25, article 5, division 3, section 25-5-32, subsection (a), (relating to RM,multiple-
family residential districts);
Chapter 25, article 5, division 4, section 25-5-42, subsection(a), (relating to RCX,
residential-commercial mixed use districts);
Chapter 25, article 5, division 5, section 25-5-52, subsection (c) and subsection(d),
(relating to RA, residential and agricultural districts);
Chapter 25, article 5, division 6, section 25-5-62, subsection (c) and subsection(d),
(relating to FA, family agricultural districts);
Chapter 25, article 5, division 7, section 25-5-72, subsection(c) and subsection(d),
(relating to A, agricultural districts);
Chapter 25, article 5, division 9, section 25-5-92 subsection (a), (relating to V,resort-hotel
districts);
Chapter 25, article 5, division 10, section 25-5-102, subsection(a), (relating to CN,
neighborhood commercial districts);
Chapter 25, article 5, division 11, section 25-5-112, subsection(a), (relating to CG, general
commercial districts);
Chapter 25, article 5, division 12, section 25-5-122, subsection(a), (relating to CV, village
commercial districts); and
Chapter 25,article 7, division 2, section 25-7-22, subsection(a), (relating to CDH,
downtown Hilo commercial district),
are amended by repealing the paragraphs containing the use"Bed and breakfast establishments
as permitted under section 25-4-7" or"Bed and breakfast establishments, as permitted under
section 25-4-7."
SECTION 6. In printing this ordinance, the list of permitted uses contained in subsections
25-5-3(b), 25-5-22(a), 25-5-32(a), 25-5-42(a), 25-5-52(c) and (d), 25-5-62(c) and (d),25-5-72(c)
and(d), 25-5-92(a), 25-5-102(a), 25-5-112(a), 25-5-122(a),25-5-162(a), and 25-7-22(a) may be
reordered and renumbered as appropriate.
SECTION 7. Chapter 14, article 4, section 14-20, of the Hawaii County Code 1983 (2016
Edition, as amended), is amended by amending the definition of"Hotel"to read as follows:
subsection (a) to read as follows:
""Hotel"means a transient [vanatiert] accommodation rental[, *her-than ^ bed an
] „
5
SECTION 8. Material to be repealed is bracketed and stricken. New material is
underscored. In printing this ordinance,the brackets,bracketed and stricken material, and
underscoring need not be included.
SECTION 9. Severability. If any provision of this ordinance or the application thereof to
any person or circumstance, is held invalid,the invalidity does not affect other provisions or
applications of the ordinance which can be given effect without the invalid provision or
application, and to this end the provisions of this ordinance are severable.
SECTION 10. This ordinance shall take effect upon its approval.
INTRODUCED BY:
CIL IV , COUNTY OF HAWAI`I
COUNCIL MEMBER, COUNTY OF HAWAI`I
Hawaii
Date of Introduction:
Date of 1st Reading:
Date of 2nd Reading:
Effective Date:
REFERENCE Comm. 676
6
P °�°F°°y'qk, LAND USE COMMISSION JOSHGREEN,GOVE NO.
,t ti959 y
yo Komikina Ho'ohana 'Aina SYLVIA LUKE
LT.GOVERNOR
o DEPARTMENT OF BUSINESS, ECONOMIC DEVELOPMENT&TOURISM
DANIELORODENKER
Ka 'Oihana Ho'omohala Pd'oihana, 'Imi Wai wai a Ho'omdka'ika'i LUC EXECUTIVE OFFICER
e � �E 235 S.Beretania Street,RM 406,Honolulu,Hawaii 96813 Telephone: (808)587-3822
@........... ...... Mailing Address: P.O.Box 2359,Honolulu,Hawaii 96804 Fax: (808)587-3827
Email Address:dbedt.luc.web@hawa°ii.gov Website: luc.hawaii.gov
February 14, 2024
Zendo Kern, Director of Planning
Department of Planning County of Hawaii,
East Hawaii Aupuni Center,
101 Pauahi Street, Suite 3
Hilo, HI 96720
SUBJECT: Comments on Council Initiated Bills
Dear Zendo:
Thank you for the opportunity to review and comment on the County Council initiated
bill. Land Use Commission Staff offers the following comments:
Bill No. 121 Relating to Transient Accommodation Rentals and Hosting Platforms
Land Use Commission Staff have no comment at this time.
Bill No. 122 Relating to the Repeal of Bed and Breakfast as a Permitted Use
Land Use Commission Staff support the repeal of Bed and Breakfast as a
Permitted Use.
Bill No. 123 Relating to `Ghana Dwelling Units
The Land Use Commission Staff is acceptive of Bill No. 123 Relating to `Ohana
Dwelling Units, with the understanding that Section 25-6-38 Prohibited Uses
states "Accessory dwelling units shall not be for use as transient vacation
accommodation rentals".
Should you have any questions, please contact my office, at (808) 587-3823 or
via email at dbedt.luc.webp_hawaii.gov.
Sincerely,
Daniel Orodenker
Executive Officer
Land Use Commission
State of H awa i i
From: kohaIacoastresortassnCcbomai1.com
To: WPCtestimony
Subject: Written testimony for Windward Planning Commission hearing on 4/5/24-Bills 121, 122 and 123
Date: Tuesday, March 26,2024 12:31:00 PM
Attachments: Testimony in support of Bills 121^1_3 122 and 123-TAR Windward Plannino Commission -3.26.24.pdf
AlltheRooms Hawaii County TAR Report 3.8.24.pdf
Aloha Chair Lim and Members of the Windward Planning Commission,
Attached please find:
1. Testimony from the Kohala Coast Resort Association on Bills 121, 122 and 123
2. Hawaii County Report—AlltheRooms.com—showing the impact ofTARs on Hawaii
Island
Mahalo for the opportunity to provide our testimony.
Aloha,
Stephanie Donoho
Administrative Director
Kohala Coast Resort Association
PO Box 6991
Kamuela, HI 96743
kohalacoastresortassn(c).i�mai l.com
(808)747-5762
Plannerig Dr7p _
xhjbit ..____ 3 ___
Kohala ofist
RESORT ASSOCIATION
March 26, 2024
Dennis Lin, Chair
Windward Planning Commission
Hawaii County Aupum Center
101 Pauahi Street, Suite 3
Hilo,Hawaii 96720
Support for and Comments on Bills 121, 122 and 123
Dear Chair Lin and Members of the Windward Planning Commission,
The Kohala Coast Resort Association(KCRA)is in support of Bills 121, 122 and 123,updating our short-term
vacation rental laws, and incentivizing homeowners to build more accessory dwelling units for local residents to use.
We are grateful to Councilmembers Heather Kimball and Ashley Kierkiewicz, Planning Director Zendo Kern and
Deputy Planning Director Jeff Darrow, for stewarding this process during the last year-and-a-half.
There are several reasons we support these bills:
1) They will create a more equitable playing field in terms of taxation and regulations by addressing all types of
transient accommodations rentals (TAR)—owner-hosted, operator-hosted and un-hosted,
2) They will help protect and hopefully create new affordable workforce and residential housing across the island
with the clarification on accessory dwelling units,
3) They will aid Civil Defense in communicating with our visitors during natural disasters and emergencies,
4) They will provide an oversight framework to make sure that accommodations being offered are safe, secure, and
follow our required building codes and county laws,
5) They will help us avoid bait-and-switch scams where one property is advertised,but another property, or none at
all is delivered,
6) They will help us obtain more accurate visitor counts and distribution models island-wide,
7) They will make sure the hosting platforms are transparent and accountable for reporting to the government, and
8) They will provide more comprehensive data, so that economic forecasting can be more accurate, and planning for
key infrastructure improvements can be considered.
There are a few comments we would like to make on specific sections of Bill 121:
1) Section 25-4-16.7 Rental Registration Process, Sub-section (a), Number(6) a notarized affidavit in a format
determined by the director, and submitted under penalty of perjury, that the transient accommodation meets
health, safety and code requirements. As has been the lawful standard, any time there is a change in use of any
structure or property,the owner is required to go through the existing planning,building and engineering
processes. The County of Hawaii is then responsible for verifying that the owner is meeting health, safety and
code requirements before the new use is allowed. Allowing the owner to simply provide an affidavit stating that
they have met those requirements,without the necessary follow-up, skirts the checks and balances the public
requires. This puts visitors' and residents' health, safety and welfare in danger. We suggest that this section be
amended so that the County of Hawaii requires, at minimum an inspection of all TARS to verify that they are
structurally sound,have adequate means of access and egress, and comply with all other code requirements,
before they are issued a TAR license. While later sections of Bill 121 assess penalties and violations if sections of
the owner's affidavit are found to be false,we believe the information contained in the affidavit should be verified
at the outset.
2) Section 25-4-16.7 Rental Registration Process, Sub-section (a), Number(8) copies of a current State of Hawaii
general excise tax license. Many testifiers on these bills during the January meeting of the Planning Committee of
the Hawaii County Council stated that they "pay all their taxes."We would suggest that in addition to the State of
Hawaii general excise tax license,that the County of Hawaii also require the registrant to submit their transient
accommodations tax license,if the unit has been operating as a TAR prior to this bill's passage.
These bills are in complete alignment with Hawaii County's Destination Management Action Plan (DMAP)2021-2025,
which was completed with community,government and industry stakeholder involvement in partnership with the Hawaii
Tourism Authority(HTA), the Island of Hawaii Visitors Bureau(IHVB)and County of Hawaii Department of Research
and Development. Efforts are currently underway at the Hawaii State Legislature to codify the DMAPs into Hawaii state
law. Better management of TARS was identified in the top 10 needs for Hawaii Island and can be found here -HTA
Hawaii Island Action Plan(hawaiitourismauthori . .or .
As a board member for the Hawaii Island Safety and Security Professionals Association (HISSPA),I am grateful that this
suite of bills helps to address visitor safety. As a member of the Kona-Kohala Chamber of Commerce's Government
Affairs and Economic Development Committees, and the Vibrant Hawaii Housing Coalition, I appreciate that these bills
provide measures to address our housing crisis. And as a former Executive Director of the Visitor Aloha Society of
Hawaii, Hawaii Island(VASH)I am grateful that these bills will ensure that accommodations offered online are safe,
secure, and actually exist, as I had to find alternate accommodations for multiple visitors during my tenure who were the
victims of bait-and-switch scams online.
Finally, I'm attaching a report from www.AlltheRooms.com as an addendum to our written testimony. It shows that there
were more than 19,000 units on Hawaii Island advertised through Airbnb,VRBO, HomeAway and similar websites
during the last year. Those units range from studios,to a single bedroom in someone's home,to entire homes with up to
12 bedrooms. If the average unit had just 2 bedrooms,that would mean more than 38,000 rooms were advertised on our
island last year. In comparison,the hotels along the Kohala Coast of Hawaii Island(Mauna Kea Beach Hotel,Westin
Hapuna, Waikoloa Beach Marriott, Hilton Waikoloa,Auberge Mauna Lam, Fairmont Orchid, and Four Seasons Hualalai)
have a combined total of 2,915 hotel rooms.
The Kohala Coast Resort Association is a collection of master-planned resorts, situated north of the Ellison Onizuka Kona
International Airport at Keahole. KCRA members employ more than 5,000 Hawaii Island residents, supporting 20,000
family members,at our hotels,timeshares,golf courses,restaurants, shopping centers and spas. The members of the KCRA
annually pay more than $40 million in TAT and $40 million in GET to the State of Hawaii and the County of Hawaii.
KCRA's members, as well as the businesses and residents within the resorts along the Kohala Coast,paid more than $135
million in property taxes to Hawaii County in 2022, accounting for one-third of all property taxes collected island wide,
according to Hawaii County's Real Property Tax office.
Thank you for your consideration of our comments and suggested amendments to Bill 121. We encourage your support of
Bills 121, 122, and 123 to better manage TARS across Hawaii Island.
Sincerely,
- P
Stephanie Donoho
Administrative Director, Kohala Coast Resort Association
Craig Anderson,VP Operations,Mauna Kea Resort—President
Pat Fitzgerald, CEO,Hualalai Investors—Vice President
Charlie Parker, General Manager, Four Seasons Hualalai— Secretary
Charles Head, General Manager, Fairmont Orchid—Treasurer
Mike Hoover, Director, Kona Villag Operations—Board of Directors
Daniel Scott,Managing Director Rosewood Kona Village— Board of Directors
Scott Head,VP Resort Operations, Waikoloa Land Company—Board of Directors
David Givens, General Manager, Hilton Waikoloa Village— Board of Directors
Rob Gunthner, Area VP Resort Operations, Hilton Grand Vacations —Board of Directors
Pete Alles,Regional VP and GM,Mauna Lam, Auberge Resorts Collection—Board of Directors
Steve Yannarell, General Manager, Waikoloa Beach Marriott—Board of Directors
PO Box 6991, Kamuela, HI 96743*(808) 747-5762*kohalacoastresortassn(&-gmail.com*www.kohalacoastresorts.com
Market ■Selected Market Boundary
Characteristics ` � '
SELECT MARKET Provider
Hawaii County,Hawaii,United States o... X - (4)airbnb,booking,... X - +
Filters CO) a O
Property Type Instant Bo... Sleeps Min... Max... Beds Number Of Revi...
Select values - (3)True,Fals.. - - -
Is Managed Is Active Rooms Min Stay L... Max... Bath... Rating
(2)True,False False True _
X 0 100
Revenue LTM Average Da... Average Ac... Booked Nig... Hosts Properties
$213M $275.05 6,947 775,094 41546 19,655
Provider Listing Distribution Rooms Sleeps
airbnb 0—1.31 k(6.67%) 0—196(1.00%)
booking 1—6.63k(33.72%) ® 1—153(0.78%)
homeaway 2—6.78k(34.47%) 2—3.69k(18.75%)
vrbo .I. 3—3.45k(17.53%) I 3—1.07k(5.42%)
4—1.01 k(5.12%) . 4—5.43k(27.63%)
5—344(1.75%) 5—871(4.43%)
6—83(0.42%) 6—5.2k(26.43%)
7—31(0.16%) 7—259(1.32%)
8—15(0.08%) 8—1.51 k(7.681A)
9—1 (0.01%) . 9—89(0.45%)
10—4(0.02%) 10—594(3.02%)
12—1(0.01%) 12—252(1.28%)
—11 i n fn n[Ul 1� 1 Q/n no°4)
Property Types Bathrooms Is Super Host
aparthotel 195 0-1.35k(6.85%) False
barn q 2.36k 1-8.04k(40.88%) True
boutique hotel 8 2-7.08k(36.04%) null
. 0 3-2.25k(11.44%) null-4.92...
bus 2 4-596(3.03%) false-6....
campervan 649 5-197(1.00%)
casa particular 6-113(0.57%)
chalet 7-22(0.11%)
condo 4 6.081 8-12(0.06%)
cottage 189 11-2(0.01%)
true-8.59k(43
earth house ....
farm stay 4 6
guest suite ��
homestay o3
hotel 322
house 4.89k Min Length Stay Max Length Stay
igloo
lodge 7 1-5.97k(30.39%) 1-7(0.04%)
minsu ®2-3.62k(18.43%) 2-13(0.07%)
other 3-3.13k(15.90%) 3-38(0.19%)
recreational ve... 4-1.33k(6.79%) 4-22(0.11%)
resort village 517 5-1.38k(7.01%) / 5-54(0.27%)
294 6-177(0.44%) 6-59 (1.695)
shipping contai... 0 7-677(3.4445) 7-333(1.6945)
tent 8-7(0.04%) 8-24(0.12%)
tipi 9-5(0.03%) 9-11(0.06%)3
townhouse 77 W'V'A
10-33(0.17%) 10-112(0.57%)
3
vacation home 1.23k 12-3(0.02%) 11-4(0.02%)
yurt 14-45(0.23%) 12-19(0.10%)
0 5k 15-3(0.02%) 13-7(0.04%)
L 9---1 1A ALA--N
Hosts, Gross Revenue and Properties by Portf... Gross Revenue by Properties Under Managem...
Gross Revenue Hosts $750M 100--267
$0.00 $400,000,000,000.00 Gross Revenue 10--19
Properties 1--1
IR 20--45
1 1 2--3
_d 4--9
50--91
8170--8170
2--3
4--9
$55013
w
N 10--19
Ln
0
Property Operator Groups by Revenue by Port...
LL
r
00 20--45 Portfolio
a Bin PORTFO...
Group Hosts SIZE Gross Revenue Properties
2 3,228 1 --1 $61,948,623.41 3,228
50--91 3 888 2--3 $97,856,290.27 2,025
4 310 4--9 $153,965,754.18 1,686
5 54 10--19 $145,683,568.01 730
6 43 20--45 $576,382,144.11 1,334
100--267 7 12 50--91 $752,687,862.38 777
8 11 100--267 $5,499,339,246.20 1,640
9 0 8170 $545,833,050,991.13 8,235
8170--8170
0 2,000 4,000 6,000 8,000
Hosts,Properties
Of a AIITheRooms. Summary for Hawaii County, null
Supply, Demand & Revenue KPIs at a glance
The market overview lets you analyze the key performance metrics of the selected market in a quick
snapshot.The key metrics are aggregated by month. Use the SELECT MARKET dropdown to toggle between
purchased markets. Use the PLATFORM dropdown to toggle between Airbnb,VRBO,and booking.com. The
Timeframe menu allows you to view the data for various periods.
SELECT MARKET* TIMEFRAME PLATFORM*
Hawaii County,Hawaii,United States of America-county x 8 Last 12 months(02/2023... x Airbnb x -
ADR Booked Nights Revenue
$325.28 59,049 $19,207,436.48
Monthly Metrics
Mo... Revenue ADR RevP... Occup... Active S... Available S... Mean Stay L... Booked ... Month N...Sum of Available...
202... $19,207,4... $32... $4,06... 40.31% 7,298 4,725 5 59,049 January 146488
202... $19,481,2... $31... $3,81... 39.31% 7,224 5,103 5 62,182 December 158200
202... $16,165,2... $27... $3,02... 37.15% 7,167 5,351 5 59,647 November 160539
202... $16,716,5... $26... $3,03... 36.58% 7,188 5,510 5 62,486 October 170818
202... $15,306,5... $25... $2,68... 35.77% 7,145 5,695 5 61,119 September 170855
202... $17,907,4... $27... $3,23... 38.22% 7,003 5,535 5 65,585 August 171591
202... $17,091,3... $28... $3,25... 37.19% 6,991 5,248 5 60,507 July 162679
202... $16,514,5... $26... $3,06... 38.57% 6,794 5,393 5 62,402 June 161785
202... $17,352,0... $24... $3,12... 40.30% 6,808 5,557 5 69,422 May 172264
202... $17,836,4... $26... $3,41... 43.65% 6,717 5,226 5 68,425 April 156776
202... $20,803,4... $27... $4,20... 49.17% 6,557 4,951 5 75,453 March 153466
202... $18,804,8... $27... $3,97... 51.96% 6,425 4,730 5 68,817 February 132452
SUMMARY $213,187,011.92 40.68% 6,943 $275.61 $3,407.67
12 rows-16 columns Sum of Revenue - Avg of Occupancy - Avg of Active Supply - Avg of ADR - Avg of RevPAL -
Key Summary Metrics for Hawaii County
Market Revenue
$20,000,000.00
$213,187,011.92
Gross Market Revenue
$15,000,000.00
a
c
a
$10,000,000.00
$5,000,000.00
775,094
Total Nights Booked
$0.00
2023-02 2023-04 2023-06 2023-08 2023-10 2023-12
Month
J�SY%OF N
Mitchell D. Roth o. t Barbara DeFranco, Chair
Mayor Zaheva Knowles, Vice Chair
*: :+ Michael Dela Cruz
Lee E. Lord Clement"CF Kanuha III
Managing Director
•�•'
EOFN K...�`� Mahina Paishon-Duarte
AT pi�
County of Hawaii
LEEWARD PLANNING COMMISSION
Aupuni Center • 101 Pauahi Street,Suite 3 • Hilo,Hawaii 96720
Phone(808)961-8288 • Fax(808)961-8742
August 30, 2023
VIA EMAIL
SUBJECT: Special Permit (PL-SPP-2023-000045)
Applicant:
Permitted Use: Allows the Establishment of a Three-Bedroom Bed and
Breakfast Operation Within an Existing Dwelling
Tax Map Keys:
The Leeward Planning Commission, at its duly held public hearing on August 17, 2023, voted to
approve the above-referenced request to allow the establishment of a three-bedroom bed and
breakfast operation within an existing dwelling. The project site is located at 75-800B Hiona
Street, approximately 1.0 miles southwest(makai) of its intersection with Mamalahoa Highway,
Holualoa, North Kona, Hawaii.
Approval of this permit is subject to the following conditions:
1. The applicant(s), its successor(s) or assign(s) ("Applicant") shall be responsible
for complying with all of the stated conditions of approval.
2. The operation of the bed and breakfast shall be conducted in a manner that is
substantially representative of plans and details as contained within the Special
Permit application received by the Planning Department and representations made
to the Leeward Planning Commission. Any substantial expansion or uses beyond
what is represented in these documents shall require an amendment to this permit.
Planning Depi.
Hawaii County is an Equal Opportunity Provider and Employer Exhibit 4
August 30, 2023
Page 2
3. The Applicant shall comply with all requirements of Section 25-4-7 of the County
of Hawaii Zoning Code, as amended, relating to bed and breakfast
establishments. Further, the bed and breakfast shall require guests to observe quiet
hours between 9:00 p.m. to 8:00 a.m., during which time the noise from the bed
and breakfast shall not unreasonably disturb adjacent neighbors. Sound that is
audible beyond the property boundary during non-quiet hours shall not be more
excessive than would be otherwise associated with a residential area.
4. The bed and breakfast operation shall be limited to the use of three (3)bedrooms.
5. The Applicant shall consult with Hawaii County Real Property Tax regarding
potential modification of the subject property's tax rates and/or tax exemptions
which may change as a result of establishing the bed and breakfast operation.
6. The applicant shall comply with Hawaii Administrative Rules, Department of
Health, Chapter 11-50 (Food Safety Code) related to food service for bed and
breakfast establishments.
7. The Applicant shall comply with all applicable County, State and Federal laws,
rules, regulations, and requirements. Further, within one year from the issuance of
this permit the applicant shall remove the front yard and any rear yard structure
encroachments or secure a variance from the planning department.
8. As represented, the Applicant shall conduct a system-wide review of the
residential and irrigation water usage with the objective of coming up with ways
to reduce the site's potable water consumption and submit the plan to the
Department of Water Supply (DWS), within 90 days of the effective date of this
Special Permit. The Applicant shall subsequently implement the water
conservation measures, within one year of the effective date of this Special
Permit.
9. Should any of the conditions not be met or substantially complied with in a timely
fashion, the Director may initiate procedures to revoke this permit.
This approval does not, however, sanction the specific plans submitted with the application as
they may be subject to change given specific code and regulatory requirements of the affected
agencies.
August 30, 2023
Page 3
Approval of this request is based on the reasons given in the enclosed Findings Report.
Should you have any questions regarding the above, please contact Clinton Mercado of the
Planning Department at(808) 961-8136 or by email at clinton.mercadoghawaiicoun ov
Sincerely,
5N-bw 'DeTkolco
Barbara DeFranco(Aug 30,2023 13:56 HST)
Barbara DeFranco, Chairperson
Leeward Planning Commission
\\P\W60\PC\PCC2023-3\LLoneyPL-SPP-2023-0451pc
Enclosure: Planning Commission Findings Report
cc w/enclosure via email: Department of Water Supply
County Real Property Tax Division
State Department of Health
Land Use Commission
GIS Section
ZONING § 25-2-43
Section 25-2-43. Amendments initiated by the council and director.
(a) Any amendment initiated by the director shall be reviewed by the commission.
(1) The amendment shall be submitted to the commission with the director's
justification and recommendation on the amendment.
(2) Upon receipt of a proposed amendment from the director, the commission shall
hold at least one public hearing. Notice of the hearing by the publication shall
be provided by the commission in accordance with section 25-2-5, except that
when a proposed amendment involves a specific parcel of land, notice shall be
provided by the commission in accordance with subsections (c) and (d).
(3) Within sixty days after receipt of the amendment from the director, the
commission shall transmit the proposed amendment together with its
recommendations thereon through the mayor to the council. The commission
shall recommend approval in whole or in part, with or without modifications,
or rejection of such amendment. In the event that the commission fails to act
on the amendment within the sixty-day period, such inaction shall be
considered as unfavorable recommendation by the commission, and the
amendment shall then be submitted through the mayor to the council with
such recommendation.
(b) The council shall refer any proposed council-initiated amendment to this chapter to
the director and the commission with requests for their respective comments and
recommendations thereon, prior to the first reading of any such amendment. The
director and the commission shall each submit comments and recommendations on
the proposed amendment to the council within one hundred twenty days from the
date that the amendment is transmitted by the council to the director and the
commission.
(1) The director shall submit comments and any recommendations to both the
commission and the council within the one-hundred-twenty-day review period.
(2) The commission shall hold at least one public hearing on the proposed
amendment. Notice of the hearing by publication shall be provided by the
commission in accordance with section 25-2-5, except that when a proposed
amendment involves a specific parcel of land, notice shall be provided by the
commission in accordance with subsections (c) and (d).
(3) The commission shall transmit the amendment together with its
recommendations thereon through the mayor to the council. The commission
shall recommend approval in whole or in part, with or without modifications,
or rejection of such amendment. In the event that the commission fails to act
on the amendment within the one-hundred-twenty-day review period, such
inaction shall be considered as an unfavorable recommendation by the
commission.
(4) After the one-hundred-twenty-day review period has expired, the council may
proceed to act on the proposed amendment as it deems appropriate.
25-27 Planning Depi.
Exhibit _.__ 5