Maui Council deadlocks on resolution for new hotel zoning districts

The Maui County Council reached a standstill Friday over a resolution intended to implement key recommendations of a Temporary Investigative Group aimed at implementing the phase-out of transient vacation rentals in apartment-zoned districts.

Ultimately, council members tabled Resolution 25-230, introduced by Council Member Tom Cook. The measure is not expected to resurface until January.

The resolution would refer a proposed bill to the Maui, Molokaʻi and Lānaʻi planning commissions. The bill seeks to establish new H-3 and H-4 hotel districts to accommodate existing transient vacation rental uses at certain properties currently zoned as apartment districts.

The move is part of the implementation of Bill 9, which was recently signed into law by Mayor Richard Bissen to phase out more than 6,000 short-term rentals in apartment zones over the next few years. Cook noted that the proposal was unanimously approved by a Temporary Investigative Group and is supported by the administration.

After signing Bill 9, Bissen said he supports the TIG recommendations, which including reclassifying more than 4,500 units into the new H-3 or H-4 Hotel zoning designation.

Deadlock over shoreline requirements

The stalemate began when Council Member Tamara Paltin moved to amend the resolution to include specific legislative intent for the planning commissions to consider. Her proposed amendment would require H-3 and H-4 districts within the shoreline area to provide shoreline access and parking, as well as an annual 10% contribution of profits toward a managed retreat fund for shoreline properties.

Council Member Keani Rawlins-Fernandez seconded Paltin’s motion and argued that the amendment was necessary to address sea-level rise and environmental accountability.

“These buildings were constructed before climate change impacts were being felt, before sea level rise was a thing,” Rawlins-Fernandez said. “To just allow for status quo to continue on and march forward, as if we haven’t learned better by now, is ridiculous and irresponsible.”

Cook initially opposed the amendment, preferring to keep the referral “clean,” but later agreed to accept it after receiving guidance from the Department of the Corporation Counsel. First Deputy Corporation Counsel Mimi DesJardins advised that including the language in the referral would prevent the bill from potentially having to be sent back to the commissions later if the Council decided to add those requirements after the initial review.

Concerns over transparency and timing

Despite the agreement between Cook and Paltin, the Council could not secure the six votes required to waive Rule 19 and adopt the amended resolution on the same day.

Rawlins-Fernandez expressed frustration over the process, noting that she and other council members were not members of the TIG, and she said the public had been “disenfranchised” by the investigative group’s seven meetings held in private.

“The planning commissioners, who are volunteers, deserve the lengthy discussions that we would have before they get it, so that they have more substance to consider,” she said, advocating for the bill to be sent to a Council committee first.

Planning Director Kate Blystone informed the Council that the planning commissions are currently booked through February. She noted that a referral must be transmitted by Jan. 9 to secure a spot on the late February agenda.

Future schedule set

With the Council unable to muster six votes to move forward, members agreed to table the resolution. To meet the Planning Department’s deadlines, the Council reorganized its upcoming schedule.

A special Council meeting is planned for 9 a.m. Jan. 5 to allow the Council to adopt a resolution amending Resolution 25-5 on committee membership. The Council also anticipates holding a committee meeting at 1:30 p.m. Jan. 5 to discuss Paltin’s proposed amendment to Resolution 25-230. That resolution will be taken up again at the Council’s first regularly scheduled meeting of the new year, beginning at 9 a.m. Jan. 7.

Other council action

In other business Friday, the Council:

• Adopted Resolution 25-231 to hire special counsel to assist the Department of Environmental Management with the permitting process for the Lahaina Wastewater Reclamation Facility.
• Passed Resolution 25-232 urging the Hawaiʻi State Legislature to ensure long-term funding for public, educational and governmental access media.
• Approved Bill 183 on first reading to increase building heights for the Front Street Apartments to allow for 240 units instead of 143.
• Passed on first reading Bill 194, which revamps the process for filling Council vacancies.