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Information Regarding the STR Ban Proposed by Mayor Bissen

Please note: This information in no way represents the opinion or policies of the AOAO or board of directors.  The information is provided by owners for owners use at their own discretion.

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Nicola Durambeis and Gaye Heck are Spearheading KR Owner activity regarding the proposed STR Ban

You can contact Nicola at kaanapaliroyalj202@gmail.com  if you have any questions.

An informative session and presentation was held on 5/18/24 via zoom by Nicola and Gaye to discuss Mayor Bissens proposed Short Term Rental ban here on Maui.   The presentation was detailed and informative and can be  viewed here:

https://docs.google.com/presentation/d/11tLPgpDHPMCQU1RcoprHw1jnL_2arKpf/edit?usp=sharing&ouid=113831115159124461747&rtpof=true&sd=true

The meeting was held to get all interested owners on the same page and as a call to action for those that wish to actively oppose the ban.  As the efforts progress, more information will be posted here.

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Background Information Regarding the Proposed Ban

2024-05-11_20-06_Part1  Minatoya List

2024-05-11_20-06_Part2 S.B. NO. 2919 S.D. 2 H.D. 2 C.D.1

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Information shared by Wayne Hedani from the KOA board regarding KR and the proposed Short Term Rental Ban

We do not have any records of a hotel operation at Kaanapali Royal. That being said, there are provisions I believe in your property warranty deed which allows for the operation of units for rental operations at the property. KOA assesses different amounts for rental vs. owner occupied units for our charges based on the property deed covenants. Because your use is being challenged, I believe it would be prudent to seek legal advice from the best people you can use to research and defend your interests in rental operations. More important than that, I believe that proactive engagement by members of your board and membership with both the Maui County Council and Maui Planning Commission members would be what carries the day on this matter. Numbers of people providing testimony to the Council and Commission matter.
The points to make would be among the following considerations:
1. Kaanapali Royal has always had a rental operation since its opening.
2. This is a legal right which was granted with your certificate of occupancy.
3. It is a vested right which the owners legally are entitled to.
4. Taking of a legal right by action by the council and commission should not be done without just compensation for the loss of that right. (needs to be vetted by a competent attorney). In actions of eminent domain where the public good is advanced by the taking of private property there is a general guide that there should be no “taking” without just compensation.
5. There is a cry from the community that affordable housing is out of reach. We agree.
6. The solution that they should be seeking is to make short term rental homes in residential zoning illegal.
7. Kaanapali Royal is in a master planned resort destination area. This means it is intended for use by visitors as a destination for their travel.
8. Resort destinations are designed to provide the visitor with everything they would need for a memorable experience within the destination area. This would include a variety of unit types to meet demand. Apartments with kitchens would fall into this design intent.
9. Reducing impacts to truly affordable residential communities requires that visitors be concentrated for the most part in resort areas. Kaanapali Royal helps to do this.
10. The Minatoya list was created by the County Corp Counsel in an opinion that said these units were legal when they were built and should remain legal as “grandfathered units”. Other units which came after the opinion, could be subject to different rules but it should be made clear at the time they are being built as to what would be allowed or disallowed.
11. To take away a right which was granted when units were built is inherently unfair. Especially without just compensation.
12. The Governor has indicated that 75,000 illegal short term rentals exist within the state. This should be verified and truly illegal units should be the target of legislation.
13. The Minatoya list should be grandfathered in and new rules to should apply to new units built after the legislation takes effect.
14. Enforcement for illegal units should be the true effort of the proposed legislation. Kaanapali Royal is not illegal. It operates within its deed covenants created at the time the project was approved for occupancy by the government.
15. The world belongs to those who show up for the meetings where this will be decided.