OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Policy Committee on Planning, Land Use, and Economic Development Meeting - September 1, 2026

County Council & CommitteesTuesday, September 1, 2026
BodyHawaii County, Hawaii
SessionCounty Council & Committees
DateTuesday, September 1, 2026
StatusFILED
Video Record
0:00 / 1:28:44

Transcript — Verbatim
0:01

Started the Khala Aloha and good afternoon.

0:04

Welcome to the Policy Committee on Planning Land Use and Economic Development.

0:08

We are meeting today at the Hawaii County Building Hilo Council Chamber.

0:12

Today it's Tuesday, September 1st, 2026.

0:16

It is the 30th session, and we are convening today at 2 51 p.m.

0:21

We apologize for the delay, heavy agenda schedule.

0:25

Present for committee today are council members Heather Kimball, Rebecca Vieigas, Holeka Inaba, Fresh Oneshi, James Eustis, and Jennifer Kagiwada, members Matt Kennelly E.

0:37

Kleinfelder, and Michelle Galimbo will be joining us shortly.

0:40

My name is Ashley Kirkwitz, Chair and Presiding Officer.

0:43

At this time, we will be taking statements from the public on Bill 147.

0:48

Mr.

0:48

Ariselli, if you could please kick that off.

0:51

Thank you.

0:52

Thank you so much, Madam Chair.

0:53

Noting that we do have a couple testifiers here in the Hilo chamber, a handful via Zoom.

0:57

What we'll do is we'll start in Kona, take their testifier, then we'll transition to our testifiers here in Hilo before closing it out with our Zoom testifiers.

1:05

So Scott, if you could start us off, please.

1:09

Thank you, Ray.

1:12

Today we've got John Pellateer to comment on Bill 147.

1:18

John, go ahead and state your name for the record and proceed.

1:20

You'll have three minutes.

1:29

Testifying with comments on Bill 147.

1:32

I strongly support the proposed amendments to Bill 147 that would remove multifamily residential and neighborhood commercial zoning from the districts where unhosted short-term vacation rentals are permitted.

1:44

The county and state have long identified housing affordability for residents as a top priority.

1:50

While we have made progress in providing government subsidized affordable housing, we also need to make sure that market rate housing remains attainable for people who live and work here.

2:00

Multifamily housing is the one is one of the few remaining pathways to homeownership for working residents.

2:06

It represents the missing middle that is so desperately needed in our housing market today.

2:12

Allowing these units to operate as unhosted STVRs makes them more attractive as investment properties than as homes.

2:19

It puts additional pressure on housing prices and reduces the supply of housing availability to local residents.

2:25

We all know that we need to build more housing on this island.

2:28

But if the housing we build is primarily being used as investment properties rather than homes for people who actually live here, we will spend our limited resources without making much progress on the problem.

2:39

Removing STBRs from RM zoning will not solve our housing affordability crisis by itself, but it is a necessary first step towards making sure the housing we build actually serves our residents.

2:52

On the topic of neighborhood commercial, chapter 25 says the purposes of neighborhood commercial district is to accommodate a compact shopping center that provides goods and services to a residential or working population on a frequent need or convenience basis.

3:06

It's specifically distinguished from a central commercial district that provides broader business and services to a city or region.

3:14

There are CN districts in our urban areas, but they're also found in our rural communities, including Waimea, Kohala, and Ka Baloa.

3:21

And unhosted STBR is a visitor accommodation, not a resident serving use.

3:27

So the question before us is pretty straightforward.

3:29

Should we expand a visitor-oriented use into a zoning district that is specifically intended to serve local residents?

3:36

The Kona CDP Action Committee has recommended removing STBRs from both RM and CN zoning.

3:42

Both the Winward and Leeward Planning Commissions have now made the same recommendation in their letters to the council containing communication 806.002.

3:53

And in the written testimony today, the Office of Hawaiian Affairs has similarly recommended removing STBRs from RM zoning and keeping them out of CN zoning.

4:04

I believe the committee should give significant weight to this agreement among the community planning process, both planning commissions and the Office of Hawaiian Affairs.

4:14

These are different bodies with different perspectives and areas of expertise, but they have reached the same conclusion on this issue.

4:25

Thank you for your testimony.

4:26

That's it for Kona.

4:27

Thank you so much, Scott.

4:29

Chair, our next testifiers we'll take are coming from Hilo.

4:32

The first of which is Joy Dillon, to be followed by Richard Henderson the second.

4:37

Joy, when you're ready to begin, you can turn that mic on by hitting the green button at the base of the mic.

4:42

Introducing yourself, and you'll have three minutes.

4:55

Hi everybody.

5:00

Aloha Chair Kirkowitz, Vice Chair Golimba, and members of the committee.

5:05

My name is Joy Dillon.

5:06

I'm a Hilo resident, and I'm testifying today as an individual citizen opposed to Bill 147 and the recent amendments put forth by the committee.

5:18

The use of different terms and definitions in the bill under undermines the stated intent of aligning the county's TVR zoning regulations with the TVR registration regulations.

5:30

The term bed and breakfast is confusing and is going to cause issues for homeowners regarding their mortgages, insurance premiums, and HOA regulations.

5:41

The county may decide to use this term innocuously, but the term B and B has traditional meanings in general and will trigger red flags for insurance companies and lenders.

5:52

Do you know that if a lender becomes aware of the existence of a B and B on a property that they that they have issued a mortgage on, that they will require the homeowner to obtain a commercial mortgage at a much more strength at much more stringent terms than a residential mortgage.

6:08

The term B and B is not used in ordinance 2550.

6:13

So to implement it now in Bill 147 will confuse both the public and property owners who wish to rent a portion of their homes as well as those who do utilize short-term rentals.

Discussion Breakdown — Share of Meeting
Zoning And Land Use█████████████████████████████████████████████55%
Housing Development████████████15%
Public Engagement███████████14%
Procedural████5%
Tourism Management███4%
Economic Development██3%
Taxation Policy██2%
Building Codes██2%
Summary of Proceedings

Policy Committee on Planning, Land Use, and Economic Development Meeting - September 1, 2026

The Policy Committee on Planning, Land Use, and Economic Development of the Hawai‘i County Council met on September 1, 2026, starting at 2:51 PM and adjourning at 4:19 PM. The primary agenda item was Bill 147, which proposes amendments to Chapters 2 and 25 of the Hawai‘i County Code to establish operational standards and use regulations for transient vacation rentals, including hosted bed and breakfasts (B&Bs) and unhosted short-term vacation rentals (STVRs). The committee heard public testimony, deliberated, and voted to postpone the bill to the September 15, 2026, committee meeting.

Public Comments & Testimony

  • John Pellateer (Kona CDP Action Committee) supported removing STVRs from RM (multifamily residential) and CN (neighborhood commercial) zoning, citing the need to preserve housing for residents and align with recommendations from the Windward and Leeward Planning Commissions and the Office of Hawaiian Affairs.
  • Joy Dillon (Hilo resident) opposed Bill 147, arguing that the term “bed and breakfast” creates confusion for mortgages, insurance, and HOA regulations, and that proposed penalties are punitive.
  • Richard Henderson (individual resident) expressed concerns about the bill’s impact on legally established RM visitor use projects, reliance on General Plan resort nodes, CN zoning eligibility, and the definition of hosted rentals, recommending amendments to preserve existing uses.
  • Mary Begier (individual citizen) urged the committee to leave the existing bed and breakfast rules unchanged.
  • Caitlin Miller (Executive Director, Hawaii Mid and Short-Term Rental Alliance) thanked the committee for amendments but requested further refinement of definitions (e.g., B&B, host, hosted TVR) and urged careful review of practical impacts before moving forward.
  • Sherry Rockwood (Wycloa Village resident) asked the committee to distinguish between owner-occupied hosted rentals and investor-owned vacation rentals, noting that her property taxes increased from $1,900 to $9,000 after renting part of her home, and urged protection for resident hosts.
  • Madeline Ross (North Kohala farmer and Airbnb co-host) opposed the bill, stating that it would prohibit existing hosted rentals with more than five bedrooms without a grandfather clause, and that the council’s own economic impact study found only 4% of owners would convert to long-term housing. She requested a grandfather clause and definition of “hosted” as living on the same TMK.
  • Jesse Rubendahl (North Kohala property manager and farmer) opposed the bill, emphasizing that the five-bedroom cap would eliminate his family’s affordable housing provided by the rental, and requested a grandfather clause for existing operators.
  • Martina Wing (Big Island resident, 25+ years) opposed Bill 147, calling the permitting process “cumbersome and confusing,” and argued that the bill adds bureaucratic burdens on small operators, especially after Hurricane Lala.
  • Anna Ruth Piffer (North Kohala hosted rental owner) opposed the five-bedroom rule, stating that her seven-bedroom property supports numerous local jobs and that a reduction to five bedrooms would cut revenue by 40%, harming the local economy and tax revenue. She recommended increasing the cap to 10 for existing compliant properties.
  • John Moss (Waikaloa vacation rental operator, 16 years) opposed the bill, citing cumulative tax increases that have made Hawaii too expensive for visitors, leading to a decline in bookings.
  • Julie Eliason (Kohala Ranch resident) opposed the bill, expressing concerns about the cost and complexity of obtaining a special use permit, excessive fines, and lack of clarity on midterm rentals (31-179 days). She requested lower fines and clear guidance.
  • Linda Halbriter (North Kohala resident, 79 years old) opposed the bill, stating that the new rules would be a “huge burden” on her as a kapuna, and that the permit process is overwhelming. She asked that existing legal operators be guaranteed permits.
  • Jamie Humphrey (North Kohala single mom and cleaner) opposed the bill, stating that her cleaning jobs for five Airbnb owners with more than five bedrooms provide flexible work and that shutting down these rentals would harm local families. She noted that the homes would not become affordable long-term housing.
  • Gina Gugliamelli was called but did not testify.

Discussion Items

  • Councilmember Heather Kimball, the bill’s sponsor, introduced a motion to approve Bill 147 and forward it to the full council with a favorable recommendation. She described the bill as a “housekeeping” measure that clarifies existing policies, aligns with state law, and removes administrative burdens for hosted rentals by eliminating the need for use permits in state land use urban and rural areas. She noted that the five-bedroom cap aligns with existing zoning and building code requirements for lodges or hotels.
  • Councilmember James Hustace raised questions about terminology (TVR vs. hosted/unhosted vs. B&B), the definition of midterm rentals (31-179 days), and the burden of proof in enforcement, suggesting that the fine schedule may lack a clear rebuttal process.
  • Planning Director Jeffrey Darrow explained that the bill is the result of eight years of work and aims to bring existing hosted rentals into compliance without requiring land use permits, in coordination with the new registration system (Chapter 6) that launched on September 1, 2026. He noted that the fines were based on other counties’ rates.
  • Councilmember Jenn Kagiwada asked about outreach to the public and the impact on property loans. Councilmember Kimball noted a webinar and website (HawaiiCountyTVR.com) with FAQs, and Darrow stated that the administration has been asked to do a public media announcement.
  • Councilmember Matt Kāneali‘i-Kleinfelder expressed concerns about the density implications of allowing multiple units on pre-1976 lots, including impacts on infrastructure (roads, water, sewer). He noted that while the bill is about housekeeping, it could lead to significant density increases. Councilmember Kimball responded that the bill does not increase density and that Bill 123 already limits STVRs to one per building site when an ADU is present.
  • Councilmember Ashley Kierkiewicz (Chair) proposed postponing the bill to allow fresh minds and further public input, noting the complexity and the late hour. Councilmember Kimball made a motion to postpone to September 15, 2026, which was seconded by Councilmember Inaba.

Key Outcomes

  • Motion to postpone Bill 147 to the September 15, 2026, committee meeting was passed unanimously (9-0). The bill was not approved or forwarded to the full council. The committee will consider the bill and four proposed amendments (clerical, midterm rentals, CN zoning, RM zoning) at the next meeting.

Meeting Transcript

Started the Khala Aloha and good afternoon. Welcome to the Policy Committee on Planning Land Use and Economic Development. We are meeting today at the Hawaii County Building Hilo Council Chamber. Today it's Tuesday, September 1st, 2026. It is the 30th session, and we are convening today at 2 51 p.m. We apologize for the delay, heavy agenda schedule. Present for committee today are council members Heather Kimball, Rebecca Vieigas, Holeka Inaba, Fresh Oneshi, James Eustis, and Jennifer Kagiwada, members Matt Kennelly E. Kleinfelder, and Michelle Galimbo will be joining us shortly. My name is Ashley Kirkwitz, Chair and Presiding Officer. At this time, we will be taking statements from the public on Bill 147. Mr. Ariselli, if you could please kick that off. Thank you. Thank you so much, Madam Chair. Noting that we do have a couple testifiers here in the Hilo chamber, a handful via Zoom. What we'll do is we'll start in Kona, take their testifier, then we'll transition to our testifiers here in Hilo before closing it out with our Zoom testifiers. So Scott, if you could start us off, please. Thank you, Ray. Today we've got John Pellateer to comment on Bill 147. John, go ahead and state your name for the record and proceed. You'll have three minutes. Testifying with comments on Bill 147. I strongly support the proposed amendments to Bill 147 that would remove multifamily residential and neighborhood commercial zoning from the districts where unhosted short-term vacation rentals are permitted. The county and state have long identified housing affordability for residents as a top priority. While we have made progress in providing government subsidized affordable housing, we also need to make sure that market rate housing remains attainable for people who live and work here. Multifamily housing is the one is one of the few remaining pathways to homeownership for working residents. It represents the missing middle that is so desperately needed in our housing market today. Allowing these units to operate as unhosted STVRs makes them more attractive as investment properties than as homes. It puts additional pressure on housing prices and reduces the supply of housing availability to local residents. We all know that we need to build more housing on this island. But if the housing we build is primarily being used as investment properties rather than homes for people who actually live here, we will spend our limited resources without making much progress on the problem. Removing STBRs from RM zoning will not solve our housing affordability crisis by itself, but it is a necessary first step towards making sure the housing we build actually serves our residents. On the topic of neighborhood commercial, chapter 25 says the purposes of neighborhood commercial district is to accommodate a compact shopping center that provides goods and services to a residential or working population on a frequent need or convenience basis. It's specifically distinguished from a central commercial district that provides broader business and services to a city or region. There are CN districts in our urban areas, but they're also found in our rural communities, including Waimea, Kohala, and Ka Baloa. And unhosted STBR is a visitor accommodation, not a resident serving use. So the question before us is pretty straightforward. Should we expand a visitor-oriented use into a zoning district that is specifically intended to serve local residents? The Kona CDP Action Committee has recommended removing STBRs from both RM and CN zoning. Both the Winward and Leeward Planning Commissions have now made the same recommendation in their letters to the council containing communication 806.002. And in the written testimony today, the Office of Hawaiian Affairs has similarly recommended removing STBRs from RM zoning and keeping them out of CN zoning. I believe the committee should give significant weight to this agreement among the community planning process, both planning commissions and the Office of Hawaiian Affairs. These are different bodies with different perspectives and areas of expertise, but they have reached the same conclusion on this issue. Thank you for your testimony. That's it for Kona. Thank you so much, Scott. Chair, our next testifiers we'll take are coming from Hilo. The first of which is Joy Dillon, to be followed by Richard Henderson the second. Joy, when you're ready to begin, you can turn that mic on by hitting the green button at the base of the mic. Introducing yourself, and you'll have three minutes.

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