BEFORE THE MAUI PLANNING COMMISSION COUNTY OF MAUI STATE OF HAWAII

Transcription

1 BEFORE THE MAUI PLANNING COMMISSION COUNTY OF MAUI STATE OF HAWAII In The Matter of The Application of JAMES W. WALKUS MAUI HOME STRH To Obtain a Short-Term Rental Home (STRH) Permit to Operate a Five (5)- Bedroom STRH in the County R-2, Residential Zoning District and State Urban District on Approximately 7,832 Square Feet of Land Located at 1143 Front Street, Maui Tax Map Key No. (2) :058, Lahaina, Maui, Hawaii DOCKET NO. STWM T2015/0012 James W. Walkus Maui Home STRH Findings of Fact, Conclusions of Law And Decision and Order Denying a Short Term Rental Home Permit for the Maui Home STRH; Certificate Of Service FINDINGS OF FACT, CONCLUSIONS OF LAW, DECISION AND ORDER DENYING A SHORT-TERM RENTAL HOME PERMIT FOR THE MAUI HOME STRH On May 9, 2015, an application for a Short-Term Rental Home Permit (STWM T2015/0012) (collectively, the Application ) was filed by Mikal Torgerson ( Consultant ) on behalf of James W. Walkus ( Applicant ). On October 13, 2015, the Maui Planning Commission ( Commission ), held a public hearing regarding Short-Term Rental Home Permit Application No. STWM T2015/0012 submitted by Applicant. The Applicant appeared at the public hearing. The Consultant did not appear due to illness. (Short-term Rental Home Decision and Order) K:\WP_DOCS\PLANNING\STWM\T2015\0012_MauiHome\Legal Documents\Decision_&_Order_Maui_Home_Final_2-Feb-2017.docx

2 Department Staff Planner Livit Callentine presented the Department s recommendation for approval of the application for a one-year period, subject to subsequent review by the Commission upon renewal. FINDINGS OF FACT The Commission makes the following Findings of Fact, based on the record in this case, including all documents submitted and testimony provided to the Commission, as well as all other items of record properly brought before the Commission. 1. To the extent that any finding of fact is more properly characterized as a conclusion of law, the Commission adopts it as such. 2. The Application involves a request to operate a five-bedroom short-term rental home ( STRH ) named Maui Home, located at 1143 Front Street, Lahaina ( Property ) (A true and correct copy of the Planning Department s Report and Recommendation ( Staff Report ) is attached hereto and made a part hereof as Exhibit A, which includes Exhibits 1-14 of the Staff Report.). 3. The Property is approximately 7,832 square feet and is located at 1143 Front Street, Lahaina, Maui, Hawaii, further described as Tax Map Key No. (2) :058, and has a state land use classification of urban, zoning designation R-2 Residential, and community plan designation single family. (See Exhibit A, p. 3). 4. The Property contains a two-story dwelling approximately 3,191 square feet in size. The dwelling consists of 5 bedrooms, 4 bathrooms, an open kitchen, dining area and living room, and an outdoor swimming pool and spa. 5. The Applicant currently operates a permitted Bed and Breakfast Home (B&B) at the Property, and intends to relinquish his B&B permit upon approval of a Short-Term Rental Home Permit (STRH). 2

3 6. The Applicant proposes to rent the entire home to a single group of short-term guests at a time. 7. On May 26, 2015, the Applicant mailed a Notice of Application to owners and recorded lessees within 500 feet of the Property notifying them of the Applicant s filing of an STRH application with the County of Maui. 8. On August 28, 2015, the Maui Planning Department deemed the Application complete, and mailed a notice to the Applicant and appropriate State and County agencies that a public hearing was scheduled on the Application before the Maui Planning Commission on October 13, There are no pending or approved STRHs or B&Bs adjacent to the Property, although five (5) permitted STRHs exist within a five hundred foot radius of Applicant s property. 10. Four (4) owners of properties within a five hundred foot radius of Applicant s property submitted testimony stating that there were already too many STRHs in the neighborhood. (See Exhibit B, and Exhibit C, pages 3-4). 11. The five STRH properties in close proximity of Applicant s property were approved administratively prior to December 31, 2012, and as such, were not subject to public hearing. (See Exhibit C, pages 8-9). 12. Approval of this STRH application would add to the increase the density of short term rental accommodations within a five hundred foot radius of Applicant s property. (See Exhibit C, pages 7 and 10-11). 13. The number of existing STRH homes currently operating within a five hundred foot radius of Applicant s property is too high. 14. Approval of this STRH application might increase property values in the community and could adversely affect owner-occupants and long term renters. (See Exhibit C, page 11). 15. The Applicant s current B&B permit was issued prior to enactment of the current law, and was not subject to the current restrictions and standards found in Chapter 19.64, MCC. 3

4 CONCLUSIONS OF LAW Based on the foregoing Findings of Fact, the Commission hereby enters the following Conclusions of Law: 1. To the extent that any conclusion of law is more properly characterized as a finding of fact, the Commission adopts it as such. 2. The Commission has jurisdiction to review the Application because there are five existing short-term rental homes operating within a five hundred foot radius of the proposed shortterm rental home. Section , MCC (See Exhibit A - Exhibit 7.) MCC. 3. The Commission reviewed the Application under (N) and (3), (N), MCC provides that short-term rental homes shall conform to the character of the existing neighborhood in which they are situated, and that prior to issuing a permit, the department or applicable planning commission shall consider the following: (1) If a proposed short-term rental property is subject to any homeowner condominium association, or other private conditions, covenants, or restrictions, then correspondence from the association or other entity responsible for the enforcement of the conditions, covenants or restrictions is required. The correspondence shall include specific conditions that determine whether or not the proposed short-term rental home use is allowed. The correspondence shall be used to assist the department in determining the character of the neighborhood. If no such association or entity exists, this requirement shall not apply. The director and the planning commissions shall not be bound by any private conditions, covenants, or restrictions upon the subject parcel. Any such limitations may be enforced against the property owner through appropriate civil action. (2) Existing land-use entitlements and uses. (3) The applicable community plan. (4) Community input. (5) Potential adverse impacts, including excessive noise, traffic, and garbage. 5. Approving an additional STRH would not be in character with the neighborhood. 4

5 6. The proposed use described in the Application fails to meet the criteria in MCC (N) (A)(3) provides that the appropriate planning commission may consider, but is not limited to, the following factors in reviewing, and approving or denying, an application: a. The number and distance from the subject parcel to other permitted shortterm rental homes; b. The number and substance of protests for the short-term rental home application and protests related to the cumulative short-term homes in the larger neighborhood or area; c. Existing or past complaints about rental operations on the property; d. Existing or past noncompliance with government requirements and the degree of cooperation by the applicant to come into compliance; e. Correspondence received by the department pursuant to section (N)(1). 8. The proposed use described in the Application fails to meet the criteria in MCC (A)(3)(a). DECISION AND ORDER After due deliberation, hearing the arguments of the Applicant, and considering the entire record in this matter, the Commission voted on October 13, 2015 to deny the permit requested by Applicant by a vote of 5-0. Therefore, pursuant to the authority of the Commission as set forth in Sections and , MCC, Applicant s request for a Short-Term Rental Permit at 1143 Front Street, Lahaina, Maui, Hawaii is hereby DENIED. The Commission s action to deny the Application and the effective date of this Decision and Order is October 13,

6 The parties are advised of their right to appeal this Decision and Order pursuant to Section 91-14, Hawaii Revised Statutes, and Section , Rules of Practice and Procedure for the Maui Planning Commission. Dated this day of, 2017, Wailuku, Maui, Hawaii. MAUI PLANNING COMMISSION, COUNTY OF MAUI MAXWELL TSAI, Chairperson Maui Planning Commission APPROVED AND SO RECOMMENDED: WILLIAM SPENCE Planning Director County of Maui APPROVED AS TO FORM AND LEGALITY JAMES GIROUX Deputy Corporation Counsel County of Maui 6

7 In accordance with the Maui Planning Commission Rules of Practice and Procedure, , the undersigned hereby certifies that Commissioners Sandra Duvauchelle, Wayne Hedani, Richard Higashi, Ivan Lay, and Jason Medeiros voted in favor of the motion made at the meeting held In the Matter of James W. Walkus for the Maui Home at 1143 Front Street, Maui, Hawaii, Docket No. STWM T2015/0012, by the Maui Planning Commission on October 13, 2015, to deny the proposed short term rental home shown in Exhibit A. WILLIAM SPENCE Planning Director County of Maui DATED 7

8 CERTIFICATE OF SERVICE In The Matter of The Application of JAMES W. WALKUS MAUI HOME STRH To Obtain a Short-Term Rental Home (STRH) Permit to Operate a Five (5)- Bedroom STRH in the County R-2, Residential Zoning District and State Urban District on Approximately 7,832 Square Feet of Land Located at 1143 Front Street, Maui Tax Map Key No. (2) :058, Lahaina, Maui, Hawaii DOCKET NO. STWM T2015/0012 James W. Walkus Maui Home STRH CERTIFICATE OF SERVICE CERTIFICATE OF SERVICE I hereby certify that a copy of the foregoing was duly served today, in the manner indicated below, upon the following parties by depositing the same with the U.S. mail, postage prepaid, addressed as follows: JAMES W. WALKUS By Certified Mail No Front Street (Return Receipt Requested) Lahaina, Hawaii MIKAL TORGERSON By Certified Mail No. 308 Wainohia Street (Return Receipt Requested) Kihei, Hawaii PETER H. PETERS P.O. Box Paia, Hawaii By Certified Mail No. (Return Receipt Requested) Dated: Wailuku, Maui, Hawaii,, 2017 WILLIAM SPENCE Director of Planning Department of Planning County of Maui 8

9 BEFORE THE MAUl PLANNING COMMISSION COUNTY OF MAUl STATE OF HAWAII In The Matter of The Application of JAMES WALKUS To Obtain a Short-Term Rental Home (STRH) Permit to Operate a Five (5)- Bedroom STRH in the County R-2, Residential Zoning District and State Urban District on Approximately 7,832 Square Feet of Land Located at 1143 Front Street, Lahaina, Maui, Hawaii at Maui Tax Map Key No. (2) :058 DOCKET NO. STWM T2015/0012 James Walkus Maui Home STRH Mikal Torgerson (Consultant) (L. Gallentine) MAUl COUNTY PLANNING DEPARTMENT'S REPORT TO THE MAUl PLANNING COMMISSION OCTOBER 13, 2015, MEETING DEPARTMENT OF PLANNING COUNTY OF MAUl 2200 MAIN STREET, SUITE 315 WAILUKU, MAUl, HI Short-Term Rental Home Permit K:\WP _DOCS\PLANNING\STWM\T2015\0012_MauiHome\Staff_Report_ To_Approvai\REPORT _13-0ct-2015.doc EXHIBIT A

10 BEFORE THE MAUI PLANNING COMMISSION COUNTY OF MAUI STATE OF HAWAII In The Matter of The Application of JAMES WALKUS To Obtain a Short-Term Rental Home (STRH) Permit to Operate a Five (5) - Bedroom STRH in the County R-2, Residential Zoning District and State Urban District on Approximately 7,832 Square Feet of Land Located at 1143 Front Street, Lahaina, Maui, Hawaii at Maui Tax Map Key No. (2) :058 DOCKET NO. STWM T2015/0012 James Walkus Maui Home STRH Mikal Torgerson (Consultant) (L. Callentine) DESCRIPTION OF THE PROJECT This matter arises from an application for a Short-Term Rental Home Permit ( STRH ) called Maui Home filed on May 9, 2015, by Mikal Torgerson ( Consultant ) on behalf of James Walkus ( Applicant ). The Applicant is requesting a STRH permit to operate a five (5) bedroom STRH located at 1143 Front Street, Lahaina, Maui. The location map is shown in Exhibit 1, the site and parking plan as Exhibit 2, and the floor plan as Exhibit 3. Photographs of the STRH are shown in Exhibit 4. Pursuant to Chapter of the Maui County Code, this STRH application must be submitted to the Planning Commission as An existing short-term rental home is operating within five hundred feet radius of the proposed short-term rental home lot, except that applications for short-term rental homes submitted prior to December 31, 2012, shall not be reviewed by the Planning Commission based on this subsection. The Staff Planner visited the property on August 20, 2015, to check for compliance with STRH rules and regulations. As of September 21, 2015, no letters of opposition have been received as a result of the mailing of the Notice of the Public Hearing. DESCRIPTION OF THE PROPERTY 1. The Property, which is approximately 7,832 square feet, is located on a rectangularshaped lot approximately 308 feet east of the Pacific Ocean on Front Street, Lahaina at Maui Tax Map Key No. (2) :058. (See attached aerial photograph labeled as Exhibit 5) Immediately adjacent to this Property we find numerous comparably-sized lots containing single-family homes. To the west and alongside the Pacific Ocean is Puunoa Beach Estates, a residential condominium development, and to the east across Front Street is a large vacant lot proposed to be the future home of the Kahoma Village Project (203 affordable housing units.) By recent estimates, there is a mixture of second-homes, owneroccupied homes, and five approved short-term rental homes within a 500- foot radius. The property was granted a bed and breakfast (B&B) permit in 2007, and it is currently active (BB1 2007/0001, BBWM 2009/0007). The Applicant intends to retire the B&B permit if and when a STRH permit is granted. Refer to Exhibit 6 for a letter of clarification from the consultant

11 2. Land Use Designations -- a. State Land Use District -- Urban b. West Maui Community Plan-- SF, Single Family c. Maui Island Plan -- Urban Growth Boundary c. County Zoning -- R2, Residential District d. Other-- Special Management Area, Lahaina National Historic Landmark District 3. Surrounding Uses -- North -- Residential East -- Residential South -- Residential West -- Residential 4. There are five (5) permitted STRH operations and no other permitted B&B homes within 500 feet of the subject property, displayed in Exhibit 7. As of the date of this report, there are 32 permitted STRH operations in the West Maui Community Plan region out of a total maximum limit of 88 STRH operations. There are no approved bed and breakfast operations within 500 feet of the subject property. See Exhibit 8 for an area map showing existing and pending STRH operations in the Lahaina area. The Kai Pali Place cul-de-sac is characterized by large, single-family homes and is home to four (4) of the five (5) permitted STRHs. This is a neighborhood characterized by a mixture of housing types, including single-family homes and condominiums. A map of STRHs and B&Bs in the West Maui Community Plan area is shown in Exhibit 9, and a map of STRHs and B&Bs on Maui Island is shown in Exhibit 10. APPLICABLE REGULATIONS Short-Term Rental Home Permit (STRH) Pursuant to Restrictions and Standards of the Maui County Code, short-term rental homes shall be subject to the following restrictions and standards. A. The short-term rental home use shall be permitted in no more than two single-family dwelling units per lot. No more than one short-term rental home permit shall be approved for any lot. B. Each permitted dwelling unit on a short-term rental home property shall be rented to one group with a single rental agreement, except: 1. On the island of Lanai; or 2. Any short-term rental home where the owner resides on an adjacent lot. C. The permit holder shall have a current transient accommodations tax license and general excise tax license for the short-term rental home. D. The permit holder shall: 1. Hold legal title to the lot on which the short-term rental home is located, except as provided in subsection G of this section; and 2. Serve as manager of the short-term rental home; provided that, the permit holder may designate: a. An immediate adult family member of the permit holder to serve as manager. - 3-

12 Immediate family includes a person's parents, spouse or partner through a civil union, children and their spouses, siblings, stepparents, stepchildren, adopted children and their spouses, and hanai children; b. An individual with an active State of Hawaii real estate license to serve as manager; or c. An adult to serve as a temporary manager for up to forty-five days in a twelvemonth period. 3. The permit holder shall notify the department and the immediate adjacent neighbors of: a. Any designation of an individual as manager pursuant to this section, including a statement of the designated manager's tenure, residential and business addresses, and telephone numbers; and b. Any change in the manager's addresses or telephone numbers. E. The manager of the short-term rental home shall: 1. Be accessible to guests, neighbors, and County agencies. For purposes of this section, "accessible" means being able to answer the telephone at all times, being able to be physically present at the short-term rental home within one hour following a request by a guest, a neighbor, or a County agency, and having an office or residence within thirty driving miles. 2. Ensure compliance with state department of health regulations, this chapter, permit conditions, and other applicable laws and regulations; 3. Enforce the house policies; and 4. Collect all rental fees. F. The short-term rental home shall only be rented when the manager is accessible. G. The short-term rental home permit shall be issued in the name of the applicant, who shall be a natural person or persons and hold legal title to the lot; except that, a permit may be issued for a lot owned by a family trust, a corporation, or an LLC if the following criteria are met: 1. The applicant shall be a natural person who is the trustee of the family trust, a twenty-five percent corporate shareholder, or a twenty-five percent member of an LLC; 2. The corporation or LLC shall not be publicly traded; and 3. All of a corporation's shareholders or all of the LLC's members shall be natural persons, and if there is more than one shareholder or member, they shall be related by blood, adoption, marriage, or civil union. H. An applicant may hold no more than one short-term rental home permit, except when: 1. Additional permits are for short-term rental homes that each have a County assessed market value of $3,200,000 or higher at the time of each application; and 2. The permit holder files complete applications for the short-term rental home permits within one year of this chapter's original effective date. I. A permit shall not be transferable; provided that, a permit may be transferred upon the death of a permit holder to an immediate family member as defined in section (D)(2)(a). J. The applicant shall provide with the application, copies of any applicable homeowner or condominium association bylaws or rules and any other applicable private conditions, covenants, or restrictions. The documents, if any, shall assist the department in determining the character of the neighborhood. -4-

13 K. The number of bedrooms used for short-term rental home use on a short-term rental home lot shall be no greater than six on Lanai and Maui, and no greater than three on Molokai. The total number of guests staying in the short-term rental home at any one time shall be no greater than two times the number of bedrooms. L. Single-station smoke detectors shall be installed in all guest bedrooms. M. Single-family dwellings used as short-term rental homes shall not qualify for real property tax exemptions permitted pursuant to chapter 3.48 of this code. N. Short-term rental homes shall conform to the character of the existing neighborhood in which they are situated. Prior to issuing a permit, the department or applicable planning commission shall consider the following: 1. If a proposed short-term rental property is subject to any homeowner, condominium association, or other private conditions, covenants, or restrictions, then correspondence from the association or other entity responsible for the enforcement of the conditions, covenants or restrictions is required. The correspondence shall include specific conditions that determine whether or not the proposed shortterm rental home use is allowed. The correspondence shall be used to assist the department in determining the character of the neighborhood. If no such association or entity exists, this requirement shall not apply. The director and the planning commissions shall not be bound by any private conditions, covenants, or restrictions upon the subject parcel. Any such limitations may be enforced against the property owner through appropriate civil action. 2. Existing land-use entitlements and uses. 3. The applicable community plan. 4. Community input. 5. Potential adverse impacts, including excessive noise, traffic, and garbage. 0. Short-term rental homes shall be limited to single-family structures existing and constructed at least five years prior to the date of application for the short-term rental home permit. P. A two-square-foot sign shall be displayed along the main access road of the shortterm rental home identifying the valid short-term rental home permit, a twenty-four hour telephone number for the owner or the manager, and a telephone number for the department. The signs shall not be subject to the provisions of chapter of this code. Q. The permit holder or manager shall prominently display "house policies" within the dwelling. The house policies shall be included in the rental agreement, which shall be signed by each registered adult guest. At a minimum, the house policies shall include: 1. Quiet hours from 9:00p.m. to 8:00a.m., during which time the noise from the short-term rental home shall not unreasonably disturb adjacent neighbors. Sound that is audible beyond the property boundaries during non-quiet hours shall not be more excessive than would be otherwise associated with a residential area. 2. Amplified sound that is audible beyond the property boundaries of the shortterm rental home is prohibited. 3. Vehicles shall be parked in the designated onsite parking area and shall not be parked on the street. 4. No parties or group gatherings other than registered guests shall occur. R. The County shall be restricted in approving the number of permits for short-term - 5-

14 rental homes as distributed per the following community plan areas and as further restricted by the applicable community plan: 1. Hana: Kihei-Makena: 1 00; provided that, there are no more than five permitted short-term rental homes in the subdivision commonly known as Maui Meadows. 3. Makawao-Pukalani-Kula: Paia-Haiku: Wailuku-Kahului: West Maui: 88. The council shall review the community plan short-term rental home restrictions when the number of approved short-term rental homes exceeds ninety percent of the restriction number. Short-term rental homes operating with a conditional permit pursuant to chapter of this title that meet the criteria of this section shall be included in the number of short-term rental homes permitted pursuant to this subsection. S. Prior to issuing a permit, the director or planning commission may impose conditions for a short-term rental home if the conditions are reasonably designed to mitigate adverse impacts to the neighborhood. T. Any dwelling unit developed pursuant to chapter 201 H, Hawaii Revised Statutes, or Chapter 2.96 of this code, shall not be used as a short-term rental home. PROCEDURAL MATTERS 1. On May 26, 2015, the Applicant mailed a "Notice of Application" to all owners and recorded lessees within 500 ft. of the subject property notifying them of the Applicant's filing of a short-term rental application with the County of Maui. A copy of the "Notice of Application" is on file in the Maui Planning Department. 2. On August 28, 2015, the Maui Planning Department mailed a notice to the Applicant and appropriate State and County agencies notifying them of the scheduled public hearing. 3. On September 12, 2015, the Applicant mailed a letter of notification and location map to all owners and recorded lessees adjacent to the subject property describing the application and notifying them of the scheduled hearing date, time and place by either certified or registered mail receipt. 4. On September 11, 2015, a notice of hearing on the application was published in the Maui News by the Maui Planning Department. 5. On September 20, 27, and October 4, the Applicant published a notice of hearing and location map in the Maui News once a week for three consecutive weeks prior to the date of the hearing on the STRH application. 6. The subject action does not involve an action that triggers compliance to Chapter 343, Hawaii Revised Statutes, relating to Environmental Impact Statements. 7. Pursuant to Chapter , this STRH application must be submitted to the Planning Commission as "An existing short-term rental home is operating within five hundred feet radius of the proposed short-term rental home lot, except that applications for short-term rental homes submitted prior to December 31, 2012, shall not be reviewed by the Planning Commission based on this subsection." -6-

15 ANALYSIS LAND USE 1. The proposed use is in conformance with the goals, objectives and policies of the Hawaii State Plan. It will provide additional opportunities for employment and economic growth in the visitor industries. 2. The subject property is in the State and County Residential District. The proposed use for a short-term rental 3. As stated in the Maui County Charter, as amended in 2002: "The General Plan shall indicate desired population and physical development patterns for each island and region within the county; shall address the unique problems and needs of each island and region; shall explain the opportunities and the social, economic, and environmental consequences related to potential developments; and shall set forth the desired sequence, patterns, and characteristics offuture developments. The general plan shall identify objectives to be achieved, and priorities, policies, and implementing actions to be pursued with respect to population density, land use maps, land use regulations, transportation systems, public and community facility locations, water and sewage systems, visitor destinations, urban design, and other matters related to development." The County of Maui 2030 General Plan Countywide Policy Plan, adopted by the Maui County Council on March 19, 2010, is the first component of the decennial General Plan update. The Countywide Policy Plan replaces the General Plan as adopted in 1990 and amended in The Countywide Policy Plan acts as an over-arching values statement and umbrella policy document for the Maui Island Plan and the nine Community Plans that provides broad goals, objectives, policies, and implementing actions that portray the desired direction of the County's future. The plan includes: a A vision statement and core values for the County to the year 2030 b c d e An explanation of the plan-making process A description and background information regarding Maui County today Identification of guiding principles A list of countywide goals, objectives, policies, and implementing actions related to the following core themes: A. Protect the Natural Environment B. Preserve Local Cultures and Traditions C. Improve Education D. Strengthen Social and Healthcare Services E. Expand Housing Opportunities for Residents F. Strengthen the Local Economy G. Improve Parks and Public Facilities -7-

16 H. Diversify Transportation Options I. Improve Physical Infrastructure J. Promote Sustainable Land Use and Growth Management K. Strive for Good Governance The proposed project is in keeping with the following Countywide Policy Plan goals, objectives and policies: Population, Land Use, the Environment and Cultural Resources Population Objective 1. To plan the growth of resident and visitor population through a directed and managed growth plan so as to avoid social, economic and environmental disruptions. Policy c. Maintain a balance between resident and visitor population by controlling and regulating growth of visitor facilities. Economic Activity General Objective 1. To provide an economic climate which will encourage controlled expansion and diversification of the County's economic base. Policy a. Maintain a diversified economic environment compatible with acceptable and consistent employment. Objective 8. To provide a balance between visitor industry employment and non-visitor industry employment for a broader range of employment choices for the County's residents. Policy a. Encourage industries that will utilize the human resources available from within Maui County rather than having to import workers. Visitor Industry Objectives 1. To encourage exceptional and continuing quality in the development of visitor industry facilities. 2. To control the development of visitor facilities so that it does not infringe upon the traditional social, economic, and environmental values of the community. Policy a. Limit visitor industry development to those areas identified in the appropriate community plans, and to the development of projects within those areas which are in conformance with the goals and objectives of those plans. -8-

17 Objective 3. To ensure that visitor industry facilities shall not disrupt agricultural and social pursuits and will not be allowed to negatively impact the County's natural and cultural pursuits. 4. The Maui Island Plan (MIP) was adopted by the County Council on December 28, The plan provides direction for future growth, the economy, and social and environmental decisions through the year The plan looks comprehensively at many factors that influence the physical, social and economic development of the island. In addition to establishing a directed growth strategy to identify areas appropriate for future urbanization and revitalization, the plan also identifies and addresses key environmental, housing, and economic development issues relevant to Maui's current and future generations. The plan is intended by the County Council, Planning Department, and Maui Planning Commission as a policy foundation for day to day decisions and is specifically intended to be used to assist in reviewing discretionary permits. According to the Directed Growth Plan (DGP) in the MIP, the subject property is located in the Urban Growth Boundary. The permit request is also in conformance with the following plan goals, objectives, and policies: Economic Development Goal 4.2. A healthy visitor industry that provides economic well being with stable and diverse employment opportunities. Objective Increase the economic contribution of the visitor industry to the island's environmental well-being for the island's residents' quality of life. Policies a Engage the visitor industry in the growth of emerging sectors where practicable d Provide a rich visitor experience, while protecting the island's natural beauty, culture, lifestyles, and aloha spirit e Diversify the tourism industry by supporting appropriate niche activities such as ecotourism, cultural tourism, voluntourism, ag-tourism, health and wellness tourism, educational tourism, medical tourism, and other viable tourism related businesses in appropriate locations f Recognize the important economic contributions that the visitor industry makes ad support a healthy and vibrant visitor industry. Objective Maximize residents' benefits from the visitor industry. Land Use Goal 7.3 Maui will have livable human-scale urban communities, an efficient and sustainable land use pattern, and sufficient housing and services for Maui residents. Objective Strengthen planning and management of the visitor industry to protect resident quality of life and enhance the visitor experience. Policies -9-

18 7.3.4.c Manage short-term rentals and bed and breakfast homes through a permitting and regulatory process in accordance with adopted ordinances and community plan policies. 5. According to the West Maui Community Plan, the property is identified as SF, Single-Family Residential and is consistent with the land use map of the Community Plan. The proposed action is in keeping with the following Community Plan recommendations: Economic Activity Goal: A diversified economy that provides a range of stable employment opportunities for residents, allows for desired commercial services for the community, and supports the existing visitor industry and agricultural industries, all in a manner that will enhance both the community's quality of life and the environment. Objectives and Policies d. Provide a diversified economic base which offers long term employment to West Maui residents, and maintains overall stability in economic activity in the areas of: a) Visitor accommodations, b) visitor-related service/commercial services,... Planning Standards 1. Land Use Standards a. All zoning applications and/or proposed land use maps and developments shall be consistent with the West Maui Community Plan and its land use policies. 6. Maui County Zoning. According to Chapter 19.08, MCC, short-term rental homes are allowed within the R-2, Residential District of the subject Property with a short-term rental home permit, which is the subject of this report and application. As previously indicated, pursuant to Chapter , this STRH application must be submitted to the Planning Commission as "An existing short-term rental home is operating within five hundred feet radius of the proposed short-term rental home lot, except that applications for short-term rental homes submitted prior to December 31, 2012, shall not be reviewed by the Planning Commission based on this subsection." Furthermore, Chapter states the following: "The department or appropriate planning commission may consider, but is not limited to, the following factors in reviewing, and approving or denying, an application: a. The number and distance from the subject parcel to other permitted short-term rental homes; Response: As of the date of this report, there are five (5) permitted STRH operations and no permitted B&B homes located within 500 feet of the subject property, as displayed in Exhibit 7. There are 32 permitted STRH operations in the West Maui Community Plan region out of a total maximum limit of 88 STRH operations. b. The number and substance of protests for the short-term rental home application and protests related to the cumulative short-term homes in the larger neighborhood or area; Response: From the initial Notice of Mailing of Application done on May 26, 2015, one (1) protest Jetter from an owner of a parcel within 500 feet of the subject property has been submitted to the Department. The letter focuses on the potential for enhanced noise,. 10.

19 vacationer's lack of concern for neighbors, and concern that short-term rentals will come to dominate the neighborhood. See Exhibit 11 for a location map showing the property in protest relative to the subject parcel, and Exhibit 12 for the letter of concern. In response to the letter, the Applicant's Consultant submitted a letter, shown in Exhibit 13, addressing these concerns, stating that an existing B&B on the property has not generated any complaints, the owner and property managers are both sensitive to this issue and will vigorously enforce the house rules. A 24-hour phone number for the manager will be posted at the front of the property. c. Existing or past complaints about rental operations on the property; Response: There are no Police Reports on this property regarding excessive noise or other complaints. d. Existing or past noncompliance with government requirements and the degree of cooperation by the applicant to come into compliance; Response: The Applicant submitted a short-term rental application in order to come into compliance with the short-term rental ordinance requirements and has been cooperative in allowing Planning Department staff to inspect the property on August 20, 2015, and has followed the public hearing noticing requirements. e. Correspondence received by the department pursuant to section (N)(1 ). Response: No private conditions or covenants are indicated for this property, thus no correspondence. Under the provisions of the Short-Term Rental Home permit, professional STRH management available 24-hours a day to respond to noise and other complaints is required. The 24-hour Manager Designation Form is included as Exhibit 14. The Applicant has arranged professional management from licensed realtor Erica Thoele. The STRH permit approval process allows for an initial approval of one year, with an additional two-year "renewal" if no substantive complaints have been received. Section Compliance and Revocation from MCC provides review and revocation procedures if legitimate concerns are demonstrated after approval of the STRH. The Code reads as follows: "If the department receives at least three complaints about a short-term rental home within a twelve-month period, and the director's investigation of the complaints is inconclusive, the director shall refer the complaints to the applicable planning commission for a determination of whether the permit shall be revoked. Complaints must be from property owners or lessees of record located on two or more different lots within a five hundred foot radius of the proposed short-term rental home. The planning commission may consider any of the following during its investigation of the complaints: Evidence of non-responsive management; Police reports of noise or other disturbances on the property; Warnings resulting from requests for service; and, Neighbor complaints of noise and other disturbances relating to the short-term rental operation." If a permit is revoked, the department shall not accept a new application from the

20 permit holder for two years after the revocation date. Consequently, strict measures are in place to regulate the compliance of short-term rental home permit holders. SHORT-TERM RENTAL HOME PERMIT CRITERIA The Applicant has satisfactorily demonstrated that the short-term rental home meets the restrictions and standards outlined in Section , MCC as follows: A. The short-term rental home use shall be permitted in no more than two single-family dwelling units per lot. No more than one short-term rental home permit shall be approved for any lot. Response: This application is for one dwelling. B. Each permitted dwelling unit on a short-term rental home property shall be rented to one group with a single rental agreement, except: 1. On the island of Lanai; or 2. Any short-term rental home where the owner resides on an adjacent lot. Response: If approved, the permit will be restricted by a condition requiring that the dwe/ling be rented to one group with a single rental agreement. C. The permit holder shall have a current transient accommodations tax license and general excise tax license for the short-term rental home. Response: Department. The applicants have TAT and GET licenses which are on file with the D. The permit holder shall: 1. Hold legal title to the lot on which the short-term rental home is located, except as provided in subsection G of this section; and 2. Serve as manager of the short-term rental home; provided that, the permit holder may designate: a. An immediate adult family member of the permit holder to serve as manager. Immediate family includes a person's parents, spouse or partner through a civil union, children and their spouses, siblings, stepparents, stepchildren, adopted children and their spouses, and hanai children; b. An individual with an active State of Hawaii real estate license to serve as manager; or c. An adult to serve as a temporary manager for up to forty-five days in a twelvemonth period. 3. The permit holder shall notify the department and the immediate adjacent neighbors of: a. Any designation of an individual as manager pursuant to this section, including a statement of the designated manager's tenure, residential and business addresses, and telephone numbers; and - 12-

21 b. Any change in the manager's addresses or telephone numbers. Response: Licensed Realtor Erica Thoele is listed as the property manager on the Manager Designation Form. A Copy of the Manger Designation forms for each dwelling are included as Exhibit 14. E. The manager of the short-term rental home shall: 1. Be accessible to guests, neighbors, and County agencies. For purposes of this section, "accessible" means being able to answer the telephone at all times, being able to be physically present at the short-term rental home within one hour following a request by a guest, a neighbor, or a County agency, and having an office or residence within thirty driving miles. 2. Ensure compliance with state department of health regulations, this chapter, permit conditions, and other applicable laws and regulations; 3. Enforce the house policies; and 4. Collect all rental fees. Response: A copy of the signed Manager Designation forms indicating the minimum manager responsibilities as listed above are included as Exhibit 14. F. The short-term rental home shall only be rented when the manager is accessible. Response: If approved, this will be a condition on the permit. G. The short-term rental home permit shall be issued in the name of the applicant, who shall be a natural person or persons and hold legal title to the lot; except that, a permit may be issued for a lot owned by a family trust, a corporation, or an LLC if the following criteria are met: 1. The applicant shall be a natural person who is the trustee of the family trust, a twenty-five percent corporate shareholder, or a twenty-five percent member of an LLC; 2. The corporation or LLC shall not be publicly traded; and 3. All of a corporation's shareholders or all ofthe LLC's members shall be natural persons, and if there is more than one shareholder or member, they shall be related by blood, adoption, marriage, or civil union. Response: The property is owned by James Walkus which meets the above requirements. H. An applicant may hold no more than one short-term rental home permit, except when: 1. Additional permits are for short-term rental homes that each have a County assessed market value of $3,200,000 or higher at the time of each application; and 2. The permit holder files complete applications for the short-term rental home permits within one year of this chapter's original effective date. Response: The Applicant does not hold a STRH permit for another property

22 I. A permit shall not be transferable; provided that, a permit may be transferred upon the death of a permit holder to an immediate family member as defined in section (D)(2)(a). Response: If approved, the permit will list the above restriction as a condition on the permit. J. The applicant shall provide with the application, copies of any applicable homeowner or condominium association bylaws or rules and any other applicable private conditions, covenants, or restrictions. The documents, if any, shall assist the department in determining the character of the neighborhood. Response: There is not a homeowner's association for this neighborhood. K. The number of bedrooms used for short-term rental home use on a short-term rental home lot shall be no greater than six on Lanai and Maui, and no greater than three on Molokai. The total number of guests staying in the short-term rental home at any one time shall be no greater than two times the number of bedrooms. Response: The applicants are asking for the use of 5 bedrooms in one main dwelling. The maximum number of guests on the property is restricted to 10 guests, including children over the age of 2. If approved, the permit will Jist the maximum occupancy as a condition. L. Single-station smoke detectors shall be installed in all guest bedrooms. Response: Photos of the smoke detectors are on file with the Department. M. Single-family dwellings used as short-term rental homes shall not qualify for real property tax exemptions permitted pursuant to chapter 3.48 of this code. Response: If approved, a copy of the approval letter will be sent to the Maui County Department of Finance Real Property Tax Division so that they may assign the proper tax classifications to the property. N. Short-term rental homes shall conform to the character of the existing neighborhood in which they are situated. Prior to issuing a permit, the department or applicable planning commission shall consider the following: 1. If a proposed short-term rental property is subject to any homeowner, condominium association, or other private conditions, covenants, or restrictions, then correspondence from the association or other entity responsible for the enforcement of the conditions, covenants or restrictions is required. The correspondence shall include specific conditions that determine whether or not the proposed short- term rental home use is allowed. The correspondence shall be used to assist the department in determining the character of the neighborhood. If no such association or entity exists, this requirement shall not apply. The director and the planning commissions shall not be bound by any private conditions, covenants, or restrictions upon the subject parcel. Any such limitations may be enforced against the property owner through appropriate civil action. 2. Existing land-use entitlements and uses. 3. The applicable community plan. 4. Community input. 5. Potential adverse impacts, including excessive noise, traffic, and garbage. Response: Section (N) directs the Maui County Planning Department or the - 14-

23 applicable planning commission to consider the following prior to issuing a permit: 1. If a proposed short-term rental property is subject to any homeowner, condominium association, or other private conditions, covenants, or restrictions, then correspondence from the association or other entity responsible for the enforcement of the conditions, covenants or restrictions is required. Response: The subject property is not subject to any homeowner, condominium association, or other private conditions, covenants, or restrictions. 2. Existing land-use entitlements and uses. Response: The subject property is located in the State Urban District, the R-2 Residential Zoning District, and is designated Single Family by the West Maui Community Plan. Furthermore, with the approval of a STRH Permit, the use will be allowed in the R-2 Residential Zoning District. There is an existing B&B permit on this property, and the Applicant asserts that he will surrender the B&B permit if and when the subject STRH application is approved. (See Exhibit 6) 3. The applicable community plan. Response: The subject property is designated Single Family by the West Maui Community Plan (WMCP). The WMCP does not prohibit short-term rental use in the designated area. 4. Community input, Response: On May 26, 2015, property owners located within 500 feet were notified by the Applicant that a permit application for a short-term rental home was filed with the Department. In response to that mailing, one (1) protest letter from an owner of a parcel within 500 feet of the subject property has been submitted to the Department. The letter focuses on the potential for enhanced noise, vacationer's lack of concern for neighbors, and concern that short-term rentals will come to dominate the neighborhood. See Exhibit 11 for a location map showing the property in protest relative to the subject parcel, and Exhibit 12 for the letter of concern. In response to the letter, the Applicant's Consultant submitted a letter, shown in Exhibit 13, addressing these concerns, stating that an existing B&B on the property has not generated any complaints, the owner and property managers are both sensitive to this issue and will vigorously enforce the house rules. A 24-hour phone number for the manager will be posted at the front of the property. The community was given ample opportunity to comment on the subject application. Pursuant to Section (8), MCC, the Applicant sent, by certified mail to the owners and lessees of record located within a five-hundred foot radius ofthe subject parcel, written notice of the short-term rental home application. Pursuant to Section (C), MCC, at least five days prior to submitting the application the Applicant displayed a four-square foot sign along the main access road, notifying interested parties of the proposed short-term rental use of the property, including contact information. Additionally, at least thirty days prior to the public hearing, the Applicant sent, by certified mail to the owners and lessees of record located within a five-hundred foot radius of the subject parcel, written notice of the short-term rental home public hearing. The Applicant published three (3) notices of the public hearing and the Maui County Department of Planning published one (1) notice of the public - 15-

24 hearing in the Maui News newspaper. Finally, the Maui Planning Commission will hold a public hearing on the application during which public testimony will be taken. 5. Potential adverse impacts, including excessive noise, traffic, and garbage. Response: Potential adverse impacts, including noise, traffic, and garbage were considered. Because the STRH is allowed to be used by only one group at a time, the impacts are considered to be comparable to those of either a homeowner occupant or a long-term rental occupant. The Department had no record of complaints on the subject property. 0. Short-term rental homes shall be limited to single-family structures existing and constructed at least five years prior to the date of application for the short-term rental home permit. Response: As shown in Maui County Real Property Tax Division records the main house was constructed in P. A two-square-foot sign shall be displayed along the main access road of the short-term rental home identifying the valid short-term rental home permit, a twenty-four hour telephone number for the owner or the manager, and a telephone number for the department. The signs shall not be subject to the provisions of chapter of this code. Response: If approved, the permit approval letter will contain the above requirement as a condition that must be met prior to operating. Q. The permit holder or manager shall prominently display "house policies" within the dwelling. The house policies shall be included in the rental agreement, which shall be signed by each registered adult guest. At a minimum, the house policies shall include: 1. Quiet hours from 9:00 p.m. to 8:00 a.m., during which time the noise from the shortterm rental home shall not unreasonably disturb adjacent neighbors. Sound that is audible beyond the property boundaries during non-quiet hours shall not be more excessive than would be otherwise associated with a residential area. 2. Amplified sound that is audible beyond the property boundaries of the short-term rental home is prohibited. 3. Vehicles shall be parked in the designated onsite parking area and shall not be parked on the street. 4. No parties or group gatherings other than registered guests shall occur. Response: A copy of the house policies was duly noted by the Staff Planner upon inspection of the property on August 20, 2015 and will be included as a condition of project approval. R. The County shall be restricted in approving the number of permits for short-term rental homes as distributed per the following community plan areas and as further restricted by the applicable community plan: 1. Hana: Kihei-Makena: 100; provided that, there are no more than five permitted short-term rental homes in the subdivision commonly known as Maui - 16-

25 Meadows. 3. Makawao-Pukalani-Kula: Paia-Haiku: Wailuku-Kahului: West Maui: 88 The council shall review the community plan short-term rental home restrictions when the number of approved short-term rental homes exceeds ninety percent of the restriction number. Short-term rental homes operating with a conditional permit pursuant to chapter of this title that meet the criteria of this section shall be included in the number of short-term rental homes permitted pursuant to this subsection. Response: The West Maui Community plan area currently has 32 short-term rental home permits, which is Jess than the imposed cap of 88. S. Prior to issuing a permit, the director or planning commission may impose conditions for a short-term rental home if the conditions are reasonably designed to mitigate adverse impacts to the neighborhood. Response: Conditions that have been recommended by the Department are included in the Department's Recommendation to the Maui Planning Commission (MPC). The MPC may impose additional conditions designed to mitigate adverse impacts to the neighborhood at the hearing. T. Any dwelling unit developed pursuant to chapter 201 H, Hawaii Revised Statutes, or Chapter 2.96 of this code, shall not be used as a short-term rental home. Response: The property was not subject to chapter 201 H HRS or Chapter of the Maui County Code. INFRASTRUCTURE AND PUBLIC FACILITIES AND SERVICES Water -- The subject property is currently serviced by County of Maui water. Sewers -- The subject property is serviced by County of Maui wastewater system. Roadways, Curbs, Gutters and Sidewalks --Access to the project site is from the paved Front Street. Public Services- Public services are regularly available in this developed West Maui Napili region. This property is serviced by the Napili Fire Station from the County of Maui. The proposed short-term rental home is located in an existing developed area and no expansion of the home is being proposed, thus no impact on infrastructure is anticipated, and no building permits are required. SOCIO-ECONOMIC IMPACTS The proposed use will continue to allow for the owner and his family to make use of the property as residential housing, as well as support the visitor industry. Further, the proposed project would use locally available goods, labor, and services for the operation of the short-term rental; and offers an opportunity for visitors to stay and contribute to the local economy outside of the hotel/resort areas

26 ENVIRONMENTAL IMPACTS No environmental impacts are anticipated as this application concerns visitor use in existing dwellings. OTHER GOVERNMENTAL APPROVALS No other governmental approvals, aside from this STRH application, are required for shortterm rental of the existing dwelling. TESTIMONY From the Mailing of the Notice of Public Hearing. As of September 22, 2015, no letters of support or protest have been received as a result of the mailing of the Notice of Public Hearing, which was sent on September 12, From the Mailing of the Notice of Application for a Short-Term Rental Home. Testimony from the initial mailing of the Notice of the Short-Term Rental Home Application, sent on May 26, 2015, has been previously discussed in detail in the section entitled Analysis, Maui County Zoning, Section 6. b. See previously noted Exhibit 12 for a protest letter from the initial mailing of the Notice of the Application. Following this letter is the Applicant's response to the neighbor's concerns. (Exhibit 13) ALTERNATIVES 1. Deferral. The Commission may defer action to another meeting date in order to obtain additional information that will assist in their deliberation on the request. 2. Approve With No Conditions. The Commission may take action to approve the permit request without imposing any conditions. 3. Approve With Conditions. The Commission may take action to approve the permit request with conditions. 4. Denial. The Commission may take action to deny the permit requests APPROVED: - ~~ WILLIAM SPENCE Planning Director - 18-

27 MAUl HOME STRH APPLICATION NO. STWM 12015/0012 TMK: (2) :058 Location Map Lahaina Cannery Mall A Tl Teddy's Bigger Burgers KeaweS\ ulupono St Tt Star Noodle Puunoa Point Kupuohi St La!jaina Ala MoanaS\ Cho1ce Kelawea Mauka /II Park aoa Beach Estates 7l ~ OJ. ~ Lahaina Kaanapali r.;1 & Pacific Railroad W Go gle Wo Hing Q Temple Museum D Mau. Theatre Send feedbacl X B I

28 MAUl HOME STRH APPLICATION NO. STWM 12015/0012 TMK: (2) :058 Site and Parking Plan 1- Ill Ill ~ 1- t- z 0 II:... ~ k STRH1

29 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 First Floor Plan I I OfFICE BEDROOM 1 DINING LANAI GRUT IIIOOM MAIN FLOOft w~-1...

30 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 Second Floor Plan BEDROOM I MASTER BEDROOM LANAI MDttOOM FAMILY ltoom T 3&.

31 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 Property Photographs

32 MAUl HOME STRH APPLICATION NO. STWM 12015/0012 TMK: (2) :058 Property Photographs Back of House facing East Facing West from 2nd floor

33 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 Property Photographs Backyard Pool & Spa

34 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 Property Photographs living Room

35 MAUl HOME STRH APPLICATION NO. STWM 12015/0012 TMK: (2) :058 Property Photographs Kitchen Dining Area EXH BIT 1/c-

36 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 Property Photographs Master Bedroom Bedroom 2

37 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 Property Photographs Bedroom 3 Bedroom4

38 MAUl HOME STRH APPLICATION NO. STWM 12015/0012 TMK: (2) :058 Aerial Photograph B

39 ,. July 23, 2015 Uvit Callentine Maui County Planning Department One Main Plaza Wailuku, HI RE: OPEN B&B PERMIT ON 1143 FRONT STREET Dear Ms. Callentine: I write this letter to clarify my clients' intent for the currently valid Bed and Breakfast permit on the property which is the subject of a STRH permit under review by you. It is my clients desire to abandon the B&B permit at the same time the STRH permit is issued. If however the STRH permit were to be denied for whatever reason he would like to keep the B&B permit. Sincerely, ~~ Mikal Torgeraon, Architect/ Planner Maui Permitted, LLC

40 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 Surrounding STRHs and B&Bs within 500 feet Dllpllly Symbology El i.iaui Dyn1mlc Theme Lltt El APPROVED BED A/ ID BREAKFAST PERMIT 0 APPROVED STRH PERIArf 0 BED A/ ID BREAKFAST PERMIT Rl REUEWAl * EJ MAUl MEADOWS STRH PERMIT El PENOIIIG BED A/ID BREAKFAST PERMIT EJ PEI'IOIIG STRH PERMIT 0 STRH PERMIT I REI IE\\/Al X B

41 MAUl HOME STRH APPLICATION NO. STWM 12015/0012 TMK: (2) :058 Surrounding STRHs and B&Bs in the Area Dynomlc 111omo LIM 1!J AFPR0\11:0 BED.WID MfAI<I'A51 PERMIT 1!J APPROVED II1RH PERMIT I!J BED AIID BREAI<FASI PERMIT fl REIIEIVAl * EI IAAO.I MI!AOOWS STil>t I'ERI.IT A EJ PEIIOII IG BED AIIO BRfAJ<FASI Pf RLUI 6 B I'EIIOIIG 111RH PERMIT I!J S!RH PER!.VIV I REIIEW"'- 8

42 MAUl HOME STRH APPLICATION NO. STWM 12015/0012 TMK: (2) :058 STRHs and B&Bs in the West Maul Community Plan Area Dlap.. y Symbology 1!J MAUl Dynamic Theme Lilt EJ APPROVED BED A/ 10 BREAKFAST PERMIT EJ APPROVED STRH PERMIT * 1!J MAUl MEADOWS STRH PERMIT EJ PEUOU IG BED A/10 BREAKFAST PERMIT EJ BED AI ID BREAKFAST PERMIT IN REIIEWAL 6 EJ PENOitiG STRH PERMIT 1!J STRH PERMIT I RENEWAL I

43 MAUl HOME STRH APPLICATION NO. STWM 12015/0012 TMK: (2) :058 STRHs and B&Bs on the Island of Maui Dlsp'-Y Symbology EJ MAUl Dynamic Theme List 0 APPROVED BED AI ID BREAKFAST PERMIT 0 APPROVED STRH PERMIT * 0 MAUl MEADOWS STRH PERMtT 0 PEND ~ IG BED AltO BREAKFAST PERMIT 0 BED Al to BREAKFAST PERMIT Ill REIIEWAL A 0 PENDBIG STRH PERMIT 0 STRH PERMIT I REI IEWAl X 10

44 MAUl HOME STRH APPLICATION NO. STWM T2015/0012 TMK: (2) :058 Protest Map 1/

45 IS- 30~ John Wright P.O. Box Lahaina, HI June 2, 2015 Department of Planning 2200 Main Street, Suite 315 Wailuku, HI Re; Application for short-term rental, TMK To Whom It May Concern: I am writing to oppose the short-term rental application for TMK due to noise concerns, especially if this property has a pool I I own the property at 1155 Lahllahl Pl. TMK and feel there are so many of these applications for this area the neighborhood will become dominated by shortterm renters who are on "holiday and not too concerned about their neighbors, hence I am opposed to this application. Thank you for your assistance in this matter. COUN-l Y OF MAUl DEPT OF PLANNING - CURRENT JUN RECEIVED,,..

46 ,. July 23, 2015 Livit Callentine Maui County Planning Department One Main Plaza Wailuku, HI RE: RESPONSE TO LETTER OF OPPOSITION FROM MR. JOHN WRIGHT OF 1155 LAHILAHI PLACE Dear Ms. Callentine: I write this letter in response to a letter of opposition sent to your department regarding my clients STRH permit application at 1143 Front Street in Lahaina. The writer, Mr. John Wright raises two concerns In his letter. First, Mr. Wright mentions a concern about noise that may be generated by the STRH "especial because it has a pool". The owner and property managers are both sensitive to this issue, and will vigorously enforce the house rules which state in part "Quiet hours are from 9:00P.M. to 8:00A.M. during which time you shall not unreasonably disturb adjacent neighbors. Sound that is audible beyond the property boundaries during non-quiet hours shall not be more excessive than would typically be associated with a residential area. Amplified sound that is audible beyond the property boundaries is prohibited'. The second concern raised by the writer is that he feels there are "so many" of these appl\cations in his area, and doesn't want the neighborhood dominated by short term renters who are on holiday and not too concerned about their neighbors". It should be noted that the subject property currently has a valid and operating B&B permit, so the granting of the requested STRH permit would not increase the number of short term renters in the neighborhood. Additionally, the writer might be pleased to know that as a fully approved and permitted STRH, he and all surrounding neighbors would be empowered to control the behavior of any guests who aren't respectful of their neighbors. The phone number for a manager who will respond to any and all concerns 24 hours a day will be posted in front of the property and any subsequent renewals of the subject permit would take into consideration any past problems that may have arisen in the preceding year. I certainly appreciate the concerns that Mr. Wright has raised, however I believe that just as there have been no concerns raised about the current permitted B&B operation, the proposed transition to STRH will be properly managed, to ensure that it is compatible with and respectful of the neighborhood that it is a part of. ~ Mikel Torgerson, Architect/ Planner Maui Permitted, LLC EX 13

47 COUNTY OF MAUl DEPARTMENT OF PLANNING 2200 MAIN STREET, SUITE 315 =~~~:::;.., SHORT-TERM RENTAL HOME (STRH) PERMIT MANAGER DESIGNATION FORM Plo pnnt logl:ti or~ 1n tho 1nlormn6on bolaw SHORT-TERM RENTAl HOUE NAME, PROPERTY, & PERMIT INFORMATION Name of Short-Tenn Rental Home: Maui Home Tu Mlp Key No: Pormtt Numbor: ST_ - Physical Address: AppiJcantiPonnlt HoldOr'e Name: Man~ger Contact lnfomldon: 1143 Front Street, lahaina HI James Walkus MANAGER _J.)ESIGNATION Manager a Name. Enca Thoe!e ertca@maulrentalmanager.com Ma lng Adctels: 308 Wa!nohla Street. Kihei HI ResidenceiBuU.ess Add wihin 30-divlng mles: 308 Wainohia St 24-Hcu Phone Number{ I) bl.a 1m eel ,... EUgtbllty Rlqu... _ (Check 11 dllt lltiiiv-): 0 I em the ~ellalntjpermit Holder. 0 I am an lmmecllta adut fami!x member R8latl0nlhi2 IKI 1 hold an ac:bve Sbll of HOWiir reel esmte ltcen&e License RS am an adult wno Wll len8 temporariiy less than forty.five (45) 0 days par yet~~ (Note: temporary mlnalirs mav not serve the lnltiat manager ). Mlnlmum Mlnag RelpGMiblllll!l (18 e5.030.:g)(f)) Tho ~r Of tne ahort-term rental home shall: 1. Be accessible to guests. neaghbors w Ccu1ly agencies. For purposes of INs section, "accessible" means being able to answet the telephom et el times. beitg able to be physically present at the short-term rental nome MNn ewte hour following e r..,_ by a guest, a neighbor. or a Ccotty agency, and having an office or fllldence wi1h~ t~ny driving muea. 2 Ensure cgmpiii1ce With liblta department of hdth regutationa. 1hil cnaprsr, permit conditions. and other applicable laws and regulations. 3. Entorce 1ne nouae pclllclea: and 4 Cdled au rental fen_ Tenu,.: Q5l Penmr~ent OHJgnauon 0 TemporafY Tenn. From: To: Dltlgnatl_.. and Ac;ceptance: /'1 L a ApplconttPermlt Holder'& (_ j" Manager' a Ooslpuon J.J;~ ~ Aecep1rce -A... ~ ~n,m.,.. Cf~L h [;..,;J 'D I $.,. "ilio l lots Date Date' ' Page t4ol14 X BIT /tf'

48 BEFORE THE MAUl PLANNING COMMISSION COUNTY OF MAUl STATE OF HAWAII In The Matter of The Application of JAMES WALKUS To Obtain a Short-Term Rental Home (STRH) Permit to Operate a Five (5)- Bedroom STRH in the County R-2, Residential Zoning District and State Urban District on Approximately 7,832 Square Feet of Land Located at 1143 Front Street, Lahaina, Maui, Hawaii at Maui Tax Map Key No. (2) :058 DOCKET NO. STWM T2015/0012 James Walkus Maui Home STRH Mikal Torgerson (Consultant) (L. Gallentine) MAUl COUNTY PLANNING DEPARTMENT'S RECOMMENDATION TO THE MAUl PLANNING COMMISSION OCTOBER 13, 2015, MEETING DEPARTMENT OF PLANNING COUNTY OF MAUl 2200 MAIN STREET, SUITE 315 WAILUKU, MAUl, HI Short-term Rental Home Permit K:\WP _Docs\Pianning\SlWM\T2015\0012_Mauihome\Staff_Report_ To_Approvai\Recommendation_13-0ct-2015.doc

49 BEFORE THE MAUl PLANNING COMMISSION COUNTY OF MAUl STATE OF HAWAII In The Matter of The Application of JAMES WALKUS To Obtain a Short-Term Rental Home (STRH) Permit to Operate a Five (5) - Bedroom STRH in the County R-2, Residential Zoning District and State Urban District on Approximately 7,832 Square Feet of Land Located at 1143 Front Street, Lahaina, Maui, Hawaii at Maui Tax Map Key No. (2) :058 DOCKET NO. STWM T2015/0012 James Walkus Maui Home STRH Mikal Torgerson (Consultant) (L. Gallentine) CONCLUSIONS OF LAW Short-term Rental Home Permit The application for a Short-term Rental Home Permit complies with the applicable standards for a short-term rental home in accordance with Chapter Restrictions and Standards, Maui County Code (MCC) as follows: A The short-term rental home use shall be permitted in no more than two singlefamily dwelling units per lot. No more than one short-term rental home permit shall be approved for any lot. B. Each permitted dwelling unit on a short-term rental home property shall be rented to one group with a single rental agreement, except: 1. On the island of Lanai; or 2. Any short-term rental home where the owner resides on an adjacent lot. C. The permit holder shall have a current transient accommodations tax license and general excise tax license for the short-term rental home. D. The permit holder shall: 1. Hold legal title to the lot on which the short-term rental home is located, except as provided in subsection G of this section; and 2. Serve as manager of the short-term rental home; provided that, the permit holder may designate: a. An immediate adult family member of the permit holder to serve as manager. Immediate family includes a person's parents, spouse or partner through a civil union, children and their spouses, siblings, -2-

50 stepparents, stepchildren, adopted children and their spouses, and hanai children; b. An individual with an active State of Hawaii real estate license to serve as manager; or c. An adult to serve as a temporary manager for up to forty-five days in a twelve- month period. 3. The permit holder shall notify the department and the immediate adjacent neighbors of: a. Any designation of an individual as manager pursuant to this section, including a statement of the designated manager's tenure, residential and business addresses, and telephone numbers; and b. Any change in the manager's addresses or telephone numbers. E. The manager of the short-term rental home shall: 1. Be accessible to guests, neighbors, and County agencies. For purposes of this section, "accessible" means being able to answer the telephone at all times, being able to be physically present at the short-term rental home within one hour following a request by a guest, a neighbor, or a County agency, and having an office or residence within thirty driving miles. 2. Ensure compliance with state department of health regulations, this chapter, permit conditions, and other applicable laws and regulations; 3. Enforce the house policies; and, 4. Collect all rental fees. F. The short-term rental home shall only be rented when the manager is accessible. G. The short-term rental home permit shall be issued in the name of the applicant, who shall be a natural person or persons and hold legal title to the lot; except that, a permit may be issued for a lot owned by a family trust, a corporation, or an LLC if the following criteria are met: 1. The applicant shall be a natural person who is the trustee of the family trust, a twenty-five percent corporate shareholder, or a twenty-five percent member of an LLC; 2. The corporation or LLC shall not be publicly traded; and 3. All of a corporation's shareholders or all of the LLC's members shall be natural persons, and if there is more than one shareholder or member, they shall be related by blood, adoption, marriage, or civil union. H. An applicant may hold no more than one short-term rental home permit, except when: -3 -

51 1. Additional permits are for short-term rental homes that each have a County assessed market value of $3,200,000 or higher at the time of each application; and 2. The permit holder files complete applications for the short-term rental home permits within one year of this chapter's original effective date. I. A permit shall not be transferable; provided that, a permit may be transferred upon the death of a permit holder to an immediate family member as defined in section (D)(2)(a). J. The applicant shall provide with the application, copies of any applicable homeowner or condominium association bylaws or rules and any other applicable private conditions, covenants, or restrictions. The documents, if any, shall assist the department in determining the character of the neighborhood. K. The number of bedrooms used for short-term rental home use on a short-term rental home lot shall be no greater than six on Lanai and Maui, and no greater than three on Molokai. The total number of guests staying in the short-term rental home at any one time shall be no greater than two times the number of bedrooms. L. Single-station smoke detectors shall be installed in all guest bedrooms. M. Single-family dwellings used as short-term rental homes shall not qualify for real property tax exemptions permitted pursuant to chapter 3.48 of this code. N. Short-term rental homes shall conform to the character of the existing neighborhood in which they are situated. Prior to issuing a permit, the department or applicable planning commission shall consider the following: 1. If a proposed short-term rental property is subject to any homeowner, condominium association, or other private conditions, covenants, or restrictions, then correspondence from the association or other entity responsible for the enforcement of the conditions, covenants or restrictions is required. The correspondence shall include specific conditions that determine whether or not the proposed short-term rental home use is allowed. The correspondence shall be used to assist the department in determining the character of the neighborhood. If no such association or entity exists, this requirement shall not apply. The director and the planning commissions shall not be bound by any private conditions, covenants, or restrictions upon the subject parcel. Any such limitations may be enforced against the property owner through appropriate civil action. 2. Existing land-use entitlements and uses. 3. The applicable community plan. 4. Community input. -4-

52 5. Potential adverse impacts, including excessive noise, traffic, and garbage. 0. Short-term rental homes shall be limited to single-family structures existing and constructed at least five years prior to the date of application for the short-term rental home permit. P. A two-square-foot sign shall be displayed along the main access road of the short-term rental home identifying the valid short-term rental home permit, a twenty-four hour telephone number for the owner or the manager, and a telephone number for the department. The signs shall not be subject to the provisions of chapter of this code. Q. The permit holder or manager shall prominently display "house policies" within the dwelling. The house policies shall be included in the rental agreement, which shall be signed by each registered adult guest. At a minimum, the house policies shall include: 1. Quiet hours from 9:00 p.m. to 8:00 a.m., during which time the noise from the short-term rental home shall not unreasonably disturb adjacent neighbors. Sound that is audible beyond the property boundaries during non-quiet hours shall not be more excessive than would be otherwise associated with a residential area. 2. Amplified sound that is audible beyond the property boundaries of the short-term rental home is prohibited. 3. Vehicles shall be parked in the designated onsite parking area and shall not be parked on the street. 4. No parties or group gatherings other than registered guests shall occur. R. The County shall be restricted in approving the number of permits for short-term rental homes as distributed per the following community plan areas and as further restricted by the applicable community plan: 1. Hana: Kihei-Makena: 100; provided that, there are no more than five permitted short-term rental homes in the subdivision commonly known as Maui Meadows. 3. Makawao-Pukalani-Kula: Paia-Haiku: Wailuku-Kahului: West Maui: 88. The council shall review the community plan short-term rental home restrictions when the number of approved short-term rental homes exceeds ninety percent of the restriction number. Short-term rental homes operating with a conditional permit pursuant to chapter of this title that meet the criteria of this section shall be included in the number of short-term rental homes permitted pursuant to this subsection. -5-

53 S. Prior to issuing a permit, the director or planning comm1ss1on may impose conditions for a short-term rental home if the conditions are reasonably designed to mitigate adverse impacts to the neighborhood. T. Any dwelling unit developed pursuant to chapter 201 H, Hawaii Revised Statutes, or Chapter 2.96 of this code, shall not be used as a short-term rental home. RECOMMENDATION The Maui County Planning Department recommends approval subject to the following conditions: 1. That the STRH Permit shall be valid until October 31, 2016, subject to further time extensions by the Director, pursuant to the provisions of Section A, MCC. 2. That the STRH Permit may be extended by the Department for a period up to two (2) years provided there are no recorded complaints against the STRH operation, and subject to payment of time extension fees. Shorter extension periods may be granted to mitigate adverse impacts based on the Department's investigation of recorded complaints. 3. Subsequent renewals shall be filed at least ninety (90) days prior to the expiration date of the permit. Included with the time-extension request shall be two (2) copies of a detailed Compliance Report addressing compliance with these conditions of approval and the above listed restrictions and standards. The Compliance Report shall include the name of the Applicant, the address, and Tax Map Key number of the STRH and the STRH Permit number. This must be followed by writing out each of the restrictions, standards, and conditions word for word, as they are written on the STRH Permit approval. Then immediately after each restriction, standard, and condition, include a response as to how the specific restriction, standard, and condition is being met. 4. That upon approval of the permit, the permit holder shall send a copy of this permit approval letter, the permit number, a copy of the house rules, twenty-four (24) hour contact information to the owners and lessees of abutting properties and their adjacent properties and properties directly across the street from the STRH home. Proof of the mailing and a list and map of the property shall be submitted to the Department within thirty (30) days of the date of this letter. 5. That the permit holder shall notify the Department and the owners and lessees of abutting properties and their adjacent properties and properties directly across the street from the STRH of any changes in the manager's addresses or telephone numbers. Such notification shall be sent prior to, or immediately after, the change in contact information occurs. Proof of mailing shall be submitted to the Department within thirty (30) days of mailing. 6. That the owner-proprietor of the permitted STRH shall exercise reasonable due care as to third parties with respect to all areas affected by subject STRH Permit and shall procure at its own cost and expense, and shall maintain during the entire period of this STRH Permit, a policy or policies of comprehensive liability in the minimum amount of ONE MILLION AND N0/1 00 DOLLARS ($1,000,000.00) naming the County of Maui as an additional insured, insuring and defending the County of Maui against any and all -6-

54 claims or demands for property damage, personal injury and/or death arising out of this permit, including, but not limited to: (1) claims from any accident in connection with the permitted use, or occasioned by any act or nuisance made or suffered in connection with the permitted use in the exercise by the Applicant of said rights; and (2) all actions, suits, damages and claims by whomsoever brought or made by reason of the non-observance or non-performance of any of the terms and conditions of this permit. A copy of the Certificate of Insurance naming County of Maui as an additional insured shall be submitted to the Department within ninety (90) calendar days from the date of approval of this STRH Permit, or prior to starting operations, whichever is first. A copy of the Certificate of Insurance naming County of Maui as an additional insured shall be submitted to the Department upon renewal of existing policies, and with the submittal of a time-extension request. (Continued documentation is required in Compliance Report) 7. That the permit holder shall provide photographic evidence that a two (2) square foot sign is displayed along the main access road, identifying the name of the STRH establishment, the permit number, the name of the manager (optional), the manager's twenty-four (24) hour telephone number, and the words "Department of Planning, Zoning Administration & Enforcement Division: (808) ," within thirty (30) calendar days from the date of the date of this letter, or prior to starting operations, whichever is first. 8. That the house rules shall be prominently displayed in the dwelling and shall be included in the rental agreement, which shall be signed by each registered adult guest. 9. That all advertising shall include the permit number. Reservation websites shall include the house policies or a working link to the house policies. Reservation websites shall also include notification to potential guests of the limit to one rental group at a time, and maximum occupancy of the unit. A copy of the website information shall be submitted to the Department within thirty (30) calendar days from the date of the date of this letter, or prior to starting operations, whichever is first. 10. That each permitted dwelling unit on the property shall be rented to one (1) group, with the exception of on the island of Lanai or where the owner resides on an adjacent lot. 11. That the STRH Permit is limited to five (5) bedrooms in the main dwelling. The total number of guests shall be limited to up to two (2) guests per bedroom. The maximum occupancy of the property is ten (10) guests, including children over the age of two (2) years old. 12. That no parties or group gatherings other than registered guests shall occur. 13. That the STRH shall not operate when the manager is not accessible. Being accessible means being able to answer the telephone at all times, being able to be physically present at the STRH within one (1) hour following a request by a guest, a neighbor, or County agency, and having an office or home within thirty (30) driving miles. 14. That a fire escape plan shall be posted in the interior of each sleeping room. 15. That all smoke detectors shall be operable and tested monthly. Older homes that were not equipped with hard wired smoke detectors must be battery operated at a minimum. -7-

55 A smoke detector shall be installed in each sleeping area. A log of the monthly testing shall be maintained by the owner-proprietor. (Continued documentation is required in Compliance Report) 16. That a fire extinguisher with a minimum rating of 2A 1 OB:C shall be mounted within seventy-five feet (75') travel distance of all interior portions of the facility. The fire extinguisher shall be clearly visible and accessible to potential users. 17. That the STRH operation shall be available for bi-annual fire inspections. 18. That the STRH operation shall be subject to periodic inspections by County enforcement personnel at reasonable times upon presentation of appropriate credentials. 19. That the STRH operation shall be conducted in substantial compliance with representations made by the Applicant and continue to meet the restrictions and standards pursuant to Section , MCC. 20. That full compliance with all applicable governmental requirements shall be rendered. The Director will determine the effects to this permit from any such non-compliance. Any such non-compliance may result in revoking, not renewing or have no effect of this permit, as determined by the Director. 21. That the STRH Permit is subject to revocation by the Director pursuant to the provisions of Sections F, MCC. 22. The owner-proprietor shall provide written verification of tax payments when filing a renewal request. The written verification shall be the State of Hawaii Department of Taxation, Form A-6, and 'Tax Clearance Application". 23. That the STRH Permit shall not be transferred, provided that a permit may be transferred upon the death of a permit holder to an immediate family member as defined in MCC Section (D)(2)(a). In consideration of the foregoing, the Planning Department recommends that the Maui Planning Commission adopt the Planning Department's Report and Recommendation prepared for the October 13, 2015, meeting as the Findings of Fact, Conclusion of Law and Decision and Order and authorize the Planning Director to transmit said written Decision and Order on behalf of the Maui Planning Commission APPROVED: WILLIAM SPENCE Planning Director -8-

56 Maui Planning Commission October 13, 2015 Item C.1. Maui Home STRH Conversion of Existing Maui Home B&B 1143 Front Street, Lahaina, Maui, Hawaii Applicant: James W. Walkus Handout: Protest Letters & Map EXHIBIT B

57 Maui Home STRH Application No. STWM T2015/ Front Street Protest Map 3 4 X 2 1 Legend Address Location Owner Name X Front Street Doreen Nellie Walkus (Applicant: James Walkus) 1150 Kaahanui Place Mark Richard Allen; letter unsigned 45 Kai Pali Place Puunoa Beach Estates, 10 CPR owners; letter unsigned 46 Ala Moana Street Jason Abbey; letter unsigned 1155 Lahilahi Place John Wright K:\WP_DOCS\PLANNING\STWM\T2015\0012_MauiHome\Project_Background\Letters\Protest_Map.docx 9/29/2015 1:20:34 PM

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