No
homestays will be allowed on agricultural land or in guest houses
under an ordinance that moves to the full Kauai County Council next
week.
The
Council's planning committee also endorsed language that requires
homeowners to live on site, and imposed a cap that limits the
planning department to reviewing 10 applications for 2015 and 2016.
But many
more will be considered initially because planners said they already
have “30 [applications] at our door.”
“We'll
start counting new applications once that law takes effect,”
Planning Director Mike Dahilig said. Property owners with
applications already in the works will be given the choice of whether
they want to be reviewed under the old or new law, he said.
“Is
that legal?” Councilwoman JoAnn Yukimura asked.
“It's
a blend of law and policy – remember you make the law,” said
Deputy County Attorney Ian Jung, noting the Council can specify in
the ordinance when things take effect.
Deputy
Planning Director Kaaina Hull said planners will be recommending the
planning commission deny applications that are actually TVRs. But
they still have the right to apply under the current law. The new law
would stop many of them from applying, though likely not completely
weed out the scammers.
“We've
seen a lot of fakes, and people are creative,” Mike said. “This
is a reaction to the creative thinking of people that we have
enforced on. This will help us in our enforcement of shutting down
these illegal TVRs from cheating the system once and for all.”
Councilman
Mel Rapozo said the ordinance needs to honor current laws that
prohibit homestays and lock out units on ag land. “We pretend those
state laws don't exist, and we worry about the financial hardships”
of the operators, he said.
Under the bill approved by the committee, property owners will have to seek a special permit to operate a home stay on ag land, as required by state law.
Only
Councilman Gary Hooser voted against the bill, including the amendment that prohibited visitors from staying in guest houses. Mel, however, said the operations should be "self-contained. We don't want to see these multiple structures." Mike supported the amendment, saying the county had experienced problems with TVR owners renting out guest houses separately from the main house, creating a multifamily dwelling.
Gary also argued that the
county should be “minimizing or eliminating the financial damage”
to people who were running illegal homestays/B&Bs for years and
are now shut down pending permit approval.
But Mike
said the county can't legally allow longtime operators to remain open
while shutting down those that just opened.
And in
response to a question from Councilman KipuKai Kualii about lessons
learned from the county's vacation rental law, community advocate
Caren Diamond noted, “I think the TVR bill is kind of the laughing
stock of the state because we're the only county who took people who
were doing illegal uses and gave them priority. And that's exactly
opposite how other counties want to do it, and how the state
Legislature recommends doing it and we really don't want to see that
happen with homestays.”
Councilman
Ross Kagawa asked how long homestay permits are valid.
“They
run with the land,” Mike said.
“Forever?”
asked Ross.
Yes,
forever, just like the TVR permits. They're an extremely valuable
entitlement that can significantly increase the value of a property.
And have no doubts, many of these are extremely lucrative businesses.
Mel said
he checked out one homestay on line, and based on its reservation
schedule, it's making $22,000 per month. John Friedman said the
six-unit operation next door to him in Waipake has been grossing
$40,000 monthly over the last eight years, while operating without a
permit. The county's attempt to shut it down has resulted in a
protracted legal process.
Gary
also contended that the county had given operators “implicit
authority to continue just by looking the other way,” and was
treating homestay owners differently than TVR owners, who were
allowed to keep operating while the county hashed out a law and
permitting process.
Mike
said the county had considered that, but the reality is “the very
first application that came through was a TVR that got shut down.”
In other words, taking Gary's approach would allow illegal TVRs to
remain open, too.
Mike
also disputed claims that the planning department had told homestay
operators they didn't need a permit, attributing it to confusion that
arose in the wake of the TVR law, where both finance and planning
were reviewing applications
“We
have always been consistent in saying homestays require a use
permit,” Mike said, noting that some people may have been told they
didn't need to go through the TVR nonconforming use process , and
interpreted that as they didn't need any permit.
Kaaina
also explained how the department came up with a cap of 10
applications, saying the commission typically reviews about 20 use
permits per year, so 10 homestay use permits seemed about the maximum
that could be handled without overwhelming commissioners or the
department.
About
100 homestays/B&Bs were identified in the state Department of
Business and Economic Development census, planners said. But no one
knows how many are actually operating on Kauai, where some websites
advertise up to 1,700 home-based visitor accommodations, most of them
unpermitted.
Though
planners said a law is needed now to stymie the flood of illegal TVRs
trying to game the system, Councilwoman JoAnn Yukimura said she
thought it was “problematic” to “give permanent rights”
without a more comprehensive law in place. Planners are viewing the
ordinance before the Council as an interim measure, while it works
out additional regulations.
Both Gary and JoAnn questioned whether B&Bs were a nuisance, with JoAnn saying the burden was on planners to show that people had complained about these uses.
Kristin Zimmerman told the Council that it needed to think about how the mushrooming home stay/TVR industry is affecting longterm housing for young people on the island, many of whom are living at home because they can't find rentals.
"We are basically Kauai the big hotel," she said. "Open your eyes to it. Thank goodness he's [Dahilig] giving some cease and desist orders."