LIHU‘E — Several community members, mostly tourism and development industry professionals, attended a workshop Tuesday intended to clarify questions related to a law that could set strict parameters on the proliferation of hotels and vacation rentals on Kaua‘i. In the
LIHU‘E — Several community members, mostly tourism and development industry professionals, attended a workshop Tuesday intended to clarify questions related to a law that could set strict parameters on the proliferation of hotels and vacation rentals on Kaua‘i.
In the 2008 elections, nearly 70 percent of voters cast ballots in favor of a County Charter amendment that transferred the decision-making authority on tourism accommodation unit permits to the Kaua‘i County Council from the Planning Commission.
The measure, put on the ballot via citizens’ petition, was intended to slow down the growth of tourism units on the island, according to Carl Imparato, chair of the Coalition for Responsible Growth.
The charter amendment gave the council some options on how to proceed. The council could keep this permitting power or return it to the commission through an ordinance that would either limit the TAU annual growth rate to no greater than 1.5 percent or establish such rate within the guidelines of a future General Plan.
Two years later the council put forward Draft Bill 2386. This legislation proposes to establish the TAU annual growth rate at 1.5 percent, and applies to zoning permits, variances, use permits and subdivision approvals for more than one TAU. The bill also exempts existing resort projects that have already been approved.
Perhaps one of the most controversial aspects of the proposed bill is that the distribution of permits would be via a lottery system.
The commission invited three representatives of distinct stakeholders to participate in the workshop.
Workshop
“Exempt means exempt, no need comply,” said David Arakawa, executive director of the Land Use Research Foundation.
Arakawa said fundamental fairness would say that projects that have already been granted discretionary approval by the county should be exempted. “We would argue that they don’t come under that 1.5 percent.”
LURF promotes equitable and streamlined state and county land use laws and regulations that advance economic development for the benefit of its members through research, testimony, education and working directly with government decision-makers, department heads and administrative staff, according to the LURF website.
“We respect the charter amendment, but exempt the guys that should be exempted,” Arakawa said.
Commission Chair James Nishida asked Arakawa why the LURF did not get involved when the amendment was passed in 2008.
“I was probably asleep at the wheel,” said Arakawa, who is from O‘ahu. “We talked with some people on Kaua‘i. … They didn’t think that the charter amendment would pass.”
Peter Sit, general manager of Pono Kai Resort, said he didn’t have a true position regarding the bill, but questioned the bills intent, fairness and strength.
“This bill limits growth. It ties your hand and there’s a lot of loopholes and fairness involved,” said Sit, adding that he had a lot of questions regarding the lottery.
Sit said no developer would spend millions of dollars in financing a plan for a project, and then wait in line, hoping to get drawn in the lottery.
“I have a real difficulty in understanding the lottery system,” Sit said.
Imparato, instrumental in the campaign to put the charter amendment question on the 2008 ballot, said if the people really want to get the amendment working, they will have to collaborate to produce a bill that satisfies a majority.
“The real fight will be over what gets grandfathered,” he said.
Developers of the Kukui‘ula project on the South Shore have been approved to build 1,500 units, but most of what they have done so far is complying with other permit requirements, including workforce housing agreements.
“They front-loaded their cost into this. It should be fair to say these people shouldn’t have to come through the lottery and hope they would win each year, because they’ve really worked their way through the process,” Imparato said.
Looking at about 160 units allowed each year, depending on how the calculation is done, a 20-year span would amount to 3,200 allowable units.
“There’s no reason why you have to do a lottery every year,” said Imparato, explaining that a developer asking for a project with 400 units would borrow allowances from future years.
“You could look five years ahead, which would be 800 units,” he said.
However, Imparato said the units that have already been approved should be considered into the equation, and then the remaining units would be thrown into the lottery.
He was also worried that a broad definition of already-approved permits would include zoning ordinance changes, which could potentially allow much more growth than intended.
Presentation
Early in the workshop, county long-range planner Marie Williams gave a detailed presentation of the proposed bill.
The lottery would be conducted at a commission meeting, and it would be through a random drawing.
The first drawing would comprise 10 percent of the certificates, and would be for applications of five TAUs or fewer. The second drawing would comprise 90 percent of the certificates, and would be for applications of six TAUs or more.
If the winner of the lottery requests more than what is available, the commission would reserve the discretion of taking certificates from subsequent years.
If undeveloped Visitor Destination Area lots would be considered into the equation, then approximately 168 units would be awarded in the drawing, given a 1.5 percent growth rate calculated into the equation.
If no undeveloped lots would be considered into the equation, then the commission would draw approximately 138 units in the first year.
The bill would not change county zoning requirements. Resort development would still be limited to VDAs.
Winning a TAU certificate would not guarantee project approval.
Existing projects may be exempted from the drawing, but would still not be exempted from other CZO requirements.
Owners of transient vacation rentals built through a TAU certificate would still have to apply for a TVR registration permit.
The public hearing will continue at a later date. The commission may make changes to the bill before sending it to the council for further revisions and final approval before it goes to the mayor.
• Léo Azambuja, staff writer, can be reached at 245-3681 (ext. 252) or lazambuja@kauaipubco.com.
