HomeMy WebLinkAbout2024-04-20 Bill 121 Bruce Paoli OP From: Pu'uhonua House
To: LPCtestimony
Subject: Written testimony-Proposed Bill 121
Date: Friday,April 19,2024 3:51:44 PM
To whom it may concern,
My name is Bruce Paoli. I own a property in south Kona and have been running a hosted
STVR on my property since 2006. It has done very well with thousands of happy visitors over
the years of operation. My property is zoned AGI and the main house was built with permits
in 1985 along with what is on county records as an additional building recorded at the time as
shop with full bath. The smaller building which sits within 50 ft of the main house has been
used as an ohana for close to 40 years. I have had a separate fire and hurricane policy for this
home since 2006. The larger main house is the structure that has been functioning as the
STVR since 2006. Some organized thoughts and notes below with respect to the new proposed
legislation.
The direct effect this legislation has if passed in its current form on my life, my family
and local folks related to the operation of the STVR.
-This vacation rental provides a steady income for me and my extended family. It also
provides a substantial portion of income for two other people involved in the operation. My
cleaner and my host. It also is a source of income that subsidizes my family farm in south
kona and it allows me to subsidize the ohana rental on the STVR property as well as 3 other
rentals on my farm, one of which my cleaner lives in. I am able to offer below market rents in
these four homes because of the income generated by my vacation rental. If I lose the ability to
continue with my hosted STVR, I will need to increase rents in four homes which I am quite
sure will push those rents to a level that the current tenants will need to find other housing.
And with respect to our family farm, the reduced income will have a substantial impact on
farm expansion plans moving forward. It is also very likely I will need to sell the property
with the STVR. This STVR home would not fetch enough as long term rental in south kona to
offset the expenses. So,just to summarize; If I am forced to discontinue the STVR, 2 people
who count on work related to my STVR would lose a substantial portion of their income and I
would potentially need to ask four tenants to pay substantially more rent or to relocate.
The potential impact of the sale of my STVR property with respect to the local housing if
this bill passes in its current form.
-My STVR property is worth somewhere close to 2 million dollars. This is not a price point
that is anywhere near affordable for most of the population in south kona. It is most likely that
because of this price point and the neighborhood it is in that it would most likely be purchased
by retirees from the mainland as a primary residence or as a 2nd home. And if this was to be
the outcome it would not help with the local housing problems.
My thoughts related to reduced availability of SVTR's on our Island
-Prior to purchasing my STVR property in 2006,my family and I had traveled to the islands
many times. We really enjoyed having the ability to stay in STVR's in different places on the
Island. It allowed for us to travel economically with the entire family and enjoy the culture of
the area we were staying in. I only travel this way now no matter where I go. I would never
stay in a hotel or condo. And over the years I have had conversations with many of the guests
that have stayed in my STVR and they all say the some thing. I am surprised that the state of
Hawaii is entertaining substantially reducing the inventory of STVR's. In my opinion, like
myself and many others I have talked with, these travelers are a demographic that will only
entertain traveling where there is the option to stay in a STVR. I am concerned that this
reduction in STVR's will have a negative effect on the economy locally and state wide. And
just to note that my SVTR alone contributed almost$40K dollars in taxes to the state and
county in 2022.
My thoughts related to the use of a detached bedroom as housing for the host with a
hosted STVR.
-I believe it is short sighted not to consider a detached bedroom as a viable living space for the
host with respect to a hosted STVR. The detached bedroom model is a pretty typical living
situation in south kona. There is absolutely no need to have a full kitchen to be able to have a
decent living space with everything you would need to prepare meals. All that is required is a
sink, storage, and either a toaster oven or microwave and maybe a hot plate. And I am pretty
sure that unless you are in an HOA with guidelines to the contrary, that you could live in a tent
on your own property if you wished.
So in closing, I think that I would caution against not taking a middle ground with respect to
the hosted STVR. As hosts,we provide a valuable service to travelers and support our
community with employment and our state with income. And unlike the un-hosted STVR, as a
hosted rental we have much more control over the process.
Mahalo,
Bruce Paoli
4/20/24