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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Summary of STR Facts Related to Kaanapali Royal” by Gaye Heck (owner)
1) Kaanapali Royal is located within the Kaanapali Beach Resort on the 16th Fairway of the Kaanapali Royal Golf Course. This Planning Commission has designated Kaanapali Beach Resort as a place where visitor-oriented activities and lodgings should be located. Banning Kaanapali Royal from hosting resort vacation rentals violates the 2022 West Maui Planning Commission’s Report by banning visitors’ lodgings in the Kaanapali Resort. Consequently, visitors who prefer a STR lodging will be pushed into STRs located in residential areas where Maui residents reside.
2) In December 1978, the State of Hawaii issued a public Preliminary Condominium Report on Kaanapali Royal (Registration No. 1066) (the “Report”). In the Report, the State of Hawaii granted rights to Kaanapali Royal that run with land, including that the intended purpose and building use of Kaanapali Royal Apartments “shall be occupied and used only as permanent or temporary residences or lodgings.” (Page 10, Preliminary Condominium Report on Kaanapali Royal). No where in the Report does the State of Hawaii state that the Kaanapali Royal Apartments’ intended purpose or building use was intended for workplace housing. Given that the proposed bill’s reason for passage is to return the properties back to their purported original purpose to provide workplace housing, the bill as proposed is based on false supporting facts and recitals/premises, especially as it relates to Kaanapali Royal.
3) The covenants and declarations contained in the deeds that are granted to Kaanapali Royal Apartment Owners allow owners to operate resort vacation rentals. (See covenants, conditions and restrictions as set forth in the Deed from Amfac, Inc., a Hawaii corporation to Kaanapali Royal Associates, a Hawaii general partnership, dated December 1, 1978 filed as Document No. 911189). Accordingly, the right of Kaanapali Royal Owners to operate a resort vacation rental is not a right granted by county ordinance but is a property right that runs with the land, its deeds, covenants and restrictions. Taking away a property right is against the U.S. Constitution Fifth Amendment. For the government to take away an owner’s property right, the government must show that the taking is for a “public use” and then it must provide “just compensation for the taking of that right. (See Fifth Amendment, U.S. Constitution). Maui County has shown no public use for the taking of Kaanapali Royal Owner’s property right if this bill passes. Taking a private property right and giving it to another private property owner is not a “public use” and is not permitted in our democracy. Kaanapali is well maintained and is not a “blighted property” that needs to be developed. Even if Maui County could prove that the taking is a “public use,” Maui County would have to pay ALL Kaanapali Royal Owners (not just those operating STRs) for the taking of their property right to operate a resort vacation rental. The impact of litigation costs and the most likely outcome that Maui County will lose in a judicial process should give this Commission pause and should result in a DENIAL of the bill.4) Kaanapali Royal is not affordable housing. As stated previously, Kaanapali Resort is located within the Kaanapali Beach Resort. The State of Hawaii requires Kaanapali Royal to pay a portion of its AOAO budget to the Kaanapali Beach Resort. (See Page 15, Preliminary Condominium Report on Kaanapali Royal). In addition, the monthly AOAO dues are $1,420. These dues will not decrease if STRs are banned on the property since they pay for maintenance of the common areas of the property, maintenance and office staff salaries, property manager salary, property insurance, maintaining the state and county required contingency fund, etc. Also, the current owners expect the dues to increase since Kaanapali Royal will be having its aging roof replaced this year. Furthermore, since a large part of the AOAO’s budget comes from STR visitor’s parking fees, the owners will be required to pay more in dues to make-up for the budget shortfall from the loss of this income.
5) The Kaanapali Royal is not conducive to multi-family housing. The bylaws state that no pets are allowed (not even goldfish), only one parking space, and no storage. These apartments are not meant for multi-family housing since they are two bedroom, 2 baths units, and the county fire code limits the occupancy to 6 people.
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Links to Documents pertinent to the STR Ban and KR
2022 Brewbaker Economic Study of STR Removal
Maui Planning Commission Presentation.pptx
The Preliminary Condominium Public Report on Kaanapali Royal issued December 29, 1978
MVRA Board Member and Hawaii Life Realtor Jeremy Stice BLOG POST on the STR Bill
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MVRA ACTION PLAN
· MVRA is creating a step by step document on where to submit testimony and talking points for your testimony
· MVRA is actively engaged with STR platforms Airbnb and Expedia (VRBO) to coordinate activities and leverage resources.
· MVRA is also actively engaged with other industry organizations including HIMAST to mobilize advocates on Maui and throughout the state.
· MVRA is in discussions with expert attorneys to support our industry as we push back on proposed policies.
Thank you for your continued support of MVRA!
We are making a difference together!
If you have any questions please feel free to email me
at membership@mauivacationrentalassociation.org
Mahalo
Caitlin Miller, Executive Director &
MVRA Board of Directors: Amy Ramos, Jeremy Stice, JP Parrish, Leo Szakacs-Kekona & Pamela Scarth
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Nicola Dourambeis and Gaye Heck (Owners) 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:
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.