Unlike
other vacation rentals profiled in this series, the owners of Hale Ono didn't scheme to avoid flood rules by lowballing construction
costs. Instead, they secured vaguely-worded Kauai County building
permits to enclose the downstairs in the flood zone. And though
county planning inspectors discovered in October 2009 that the ground
floor was being used for habitation, no known enforcement action has
been taken. Instead, the property has openly operated as a
multi-family vacation rental — a violation of the North Shore plan
— with no TVR permit.
Indeed,
numerous Internet ads for Hale Ono boldly showcase its zoning
violations as amenities: (emphasis added):
The
downstairs includes 2
bedrooms/1 bath and has its
own separate entrance. This would be ideal for the in-laws or nanny.
The lower level is very simply decorated.
Rental
options: You can rent the
upstairs and downstairs separately.
The rates start from $2200 - $4000/week depending on season.
Another
ad includes photos of “some of the
fine appoinments [sic] of the downstairs living area:”
It also proclaims (emphasis added):
This
completely remodeled home with exotic Balinese carvings/furniture has
2 bd/rms, 2 full baths/jacuzzi tub, ocean/mt. lanais, soothing
pool/spa, outside hot shower, barbeque, cable TV/VCR, surround sound,
fax/tele, WIFI Internet, W/Dryer, Dishwasher, & queen sleeper
sofa. An additional downstairs space is also available for
bigger groups. This includes another large living area, plus two
bedrooms and two baths. It is located 25 steps to the
OCEAN.
Two
Bedrooms, Two Baths, $2100-$2500/wk, $750 deposit, $200 outclean.
Four
Bedrooms, Four Baths, $3000-$3500/wk, $1000 deposit, $375 outclean
Now
that we know what it currently is, let's look at how it started out.
The
house was built in 1991 as an additional dwelling unit (ADU) on the
Nishimoto parcel, which is located on the makai side of Kuhio
Highway, just before the Hanalei Colony Resort. It was elevated, with
an open downstairs, in compliance with flood laws, as you can clearly see in the photo below:
In
2004, the old Nishimoto house was substantially renovated and turned
into the Hale Haena TVR, a process detailed in Abuse Chronicles 7.
The lot was subdivided, and the ADU was assigned its own TMK and
sold.
The
owner is a Nevada-based foreign limited
liability company known as Alta
Management Services LLC. According to the state Department of
Commerce and Consumer Affairs website, “This
business is not in good standing.” Toni
Sutherland is listed as the agent.
In
September 2005, Sutherland applied for a $37,200 building
permit to “enclose new storage.” The submitted plans showed an
enclosure of the entire ground floor and the application claimed,
“The bottom floor will be enclosed and used for storage
(non-habitable area). Breakaway construction shall be used.” The
permit was cleared by county flood engineer Glenn
Okamoto and planning inspector Vil Balisacan.
On
April 12, 2006, Sutherland applied for another permit, valued at
$37,200, to alter the two-bedroom, two-bath house. Though the scope
of work was vague — “Ground floor= Add Sto [sic], add 550 under
residence.” — the permit was approved on Aug. 16, 2006.
On
April 19, 2006, Sutherland applied for two more permits, both of
which were approved. One was for a 2,352-square-foot ADU valued at
$285,200. The status of this structure is unclear, as there is no
record of any inspection after Mervin Rapozo approved the foundation on Dec. 31, 2008.
The
other permit added another 852 square feet, at a cost of $65,000, to
the existing house, which is described as a “dwelling/lodge.”
Mario Antonio, previously a flood inspector with the county's
engineering division, commented on the permit: “No habitable space
allowed below BFE permitted.” Specifically,
federal flood laws state that any ground floor use, such as storage,
must be unfinished, with break-away walls and no windows or
electricity. Yet as these pictures show, that is clearly not the
case at Hale Ono:
In
2009, Sutherland applied for two
vacation rental certificates for
Hale Ono. One was for “5709A KUHIO AV
MASTER;” the other for “5-7094 A Kuhio Hwy.” The applications
prompted a site visit by planning inspector Bambi Emayo, who sent the
following inquiry to Antonio on Oct. 29, 2009:
“We
have a single family dwelling with a lower floor enclosed and used as
habitable space (dwelling or some kind or studio) have you given out
a permit for both the enclosure and the habitable use?”
The
next day, Antonio replied:
“Bambi,
there is not supposed to be any living space or equipment servicing
the house below BFE [below flood elevation].”
According
to the county TVR log, both applications were “withdrawn” and
there is no record of any non-conforming use permits being issued for
Hale Ono. Yet county tax records classify the property as a vacation
rental. Tax records also describe the property as
two bedrooms and one bath, with a total living area of 2,016
square feet.
Meanwhile,
numerous Internet ads reveal Hale Ono
offering its services as a four-bedroom, four-bath “bed and
breakfast” that sleeps 10-13.
This
new completely remodeled custom home with exotic Balinese carvings
and furniture has 2 bedrooms and 2 Master Bathrooms upstairs and
3 rooms and 2 Master Bathrooms downstairs. Room for up to 12 people.
The
upstairs is private and is accessed by a stairway overlooking the
ocean. It is not connected to the downstairs which provides secluded
separation. The new downstairs area is accessed
through the main front door to the right of the Antique Balinese
gate/pool area; and also independently through custom teak/screened
sliders from each room below to the pool area. The
fourth exit is through a tall, glass/screen slider that looks out
over the ocean (downstairs in the large Flat Screen media room) that
steps out onto another lanai (great for lounging/reading/etc. This
leads directly to the secluded beach which is on the property about
30 steps away.
Though the ad describes Hale Ono as a “BED AND BREAKFAST ONLY for FAMILY
AND FAMILY FRIENDS,” it's clear from comments left by guests that
this is an active commercial enterprise. As a couple who rented the
downstairs on Jan. 23, 2013 noted:
Nothing
about this rental is what the owners have posted. Once arriving you
feel that the mgmt/owners would of said anything to rent out this
unit. They noted my wife would be able to access the lower unit with
2-3 steps. This was very important since they were told she still
uses a walker and wheelchair, their were no less then 5-6 steps. The
pool was broken down,no heat and the jets were broken. The house
fans barely worked and there were a lot of wiring problems with the
unit. We put up with construction workers that left nails all over
the lawn causing us a flat tire. We even repaired the downstairs
toilet seat. The mgmt/owner made no effort to apologize for our
inconveniences. Instead they changed there listing to "no
handicaps". A very callous and insensitive move.
To
which the “owner” (Sutherland?) replied, while simultaneously
acknowledging the property's longstanding use as an unpermitted TVR:
Our
family at Hale Ono do our absolute best with excellent service to
help all who have stayed and have only received 5 STAR RATINGS over
the last 9-10 years at Hale Ono on the beach in paradise.
Another
guest, who rented the property on Sept. 9, 2012 for her “dream
beach wedding,” revealed additional construction was under way:
We
drove up the driveway, parked in the yard next to the most perfect
little Balinese tiki hut being built for future renters
The
“hut” is described in the same ad as:
There
is a small Hale Bali with ocean view, barbeque, Tahitian hot/cold
shower; micro wave; refrigerator; wet bar; bathroom, etc. near the
home that also may be available. It accomodates [sic] two for
sleeping in the loft and a futon/sofa on the lower floor and is
completely enclosed by bamboo/teakwood fencing for privacy, etc.
Pricing: $245 per night + cleaning, etc. and may be rented separately
or with the main home.
It's
unclear whether this property, which can now apparently accommodate 16
persons, exceeds its wastewater system,
which is limited to 800 gallons per day, according to the state
Department of Health.
It's
also unclear how an ADU could become what Bali Hai Realty's Michael
Schmit described as:
The
property includes both units of the two-unit CPR. With one beach
house already built and another that could be built next door (the
home may be purchased separately).
Or how Schmidt can treat the enclosed downstairs as a
selling point, when it's a blatant violation of federal flood laws:
This
Tropical Balinese home has two bedrooms and one bath upstairs and as
well as three rooms downstairs along with two full baths, totaling
more than 2,000 square feet of living area.
What
is clear, however, is the tremendous impact of these apparently
fraudulent activities on the community and its fragile resources.
What began as a residential lot with two small houses, each occupied
by one longterm renter, has become a commercial resort with three vacation rentals that together sleep 26 people. The guests, meanwhile, are
allowed to sleep in the flood zone and hold weddings on the beach. They are also directed for recreation to Kee, which is described as a
“long
calm bathtub protected by a long reef,” and told the
rough, reefy shoreline in front of the property is "ideal for
children" and "great for snorkeling."
As a Hale Ono ad chortles:
JUST BECAUSE is the phrase for HALE ONO and our beloved beach neighbors.
But just because the county lets you get away with something doesn't mean it's right.