Housing and Land Use Committee Meeting on Bill 88 to Establish H3 and H4 Hotel Districts - May 26, 2026

The Housing and Land Use Committee of the Maui County Council met on May 26, 2026, at 9:33 a.m. to discuss Bill 88 (2026), which would amend the comprehensive zoning ordinance to establish new H3 and H4 hotel districts. The bill is a recommendation from the Temporary Investigative Group (TIG) formed to address policies for transient vacation rentals (TVRs) in apartment districts. The H3 and H4 districts would mirror the A1 and A2 apartment districts in development and use standards, but would permit TVR uses that were phased out by Ordinance 5909 (Bill 9). The bill does not rezone any properties; that would require separate future legislation. The Maui, Lanai, and Molokai Planning Commissions all recommended denial. After public testimony and discussion, the committee voted 6-1-2 to recommend passage to the full council, with amendments.

Public Comments & Testimony

• Mayor Richard Tepison Jr. testified in strong support, stating Bill 88 creates a structured framework for properties to be considered for continued visitor accommodation use through future land use actions, and that it is an intentional next step in implementing Bill 9.
• John Chasen (20-year owner at Maui Sands One) supported Bill 88, saying it provides jobs and a balance of TVR condos and hotels. He urged inclusion of Maui Sands One in future rezoning.
• Travis Leggat (unsheltered citizen, founder of FleshAware.com) urged caution, citing wastewater and safety concerns, and asked for more time and a section seven for philanthropy.
• Greg Reliske questioned why H1 and H2 zoning are not sufficient, noted all three planning commissions rejected the bill, and asked for shoreline armoring and parking provisions.
• Cara Burkholtz (Kihei resident) supported passage of a clean Bill 88.
• Eve Hogan supported the bill, arguing the planning commission misunderstood it and that council members committed to passing H3/H4 zoning when Bill 9 passed.
• Sonny Cave (owner at Maalaea Kai) supported, saying it modernizes zoning to match real-world uses and mitigates litigation risk.
• Paele Kiyokona (Lahaina Strong) opposed, fearing the new zoning would be used incrementally to undo Bill 9's work; suggested attaching conditions to H1/H2 rezoning instead.
• Malama Min (Realtors Association of Maui) supported, noting many properties are not feasible as long-term housing.
• Jackie Keith opposed, expressing frustration and arguing the planning commissions' recommendations should be respected.
• Jordan Rudis (on own behalf) opposed blanket approach, supported targeted upzoning for about 10 properties that truly operate as hotels.
• Corey McKim supported, calling it a crucial step for zoning modernization.
• Pamela Tumpap (Maui Chamber of Commerce) supported, noting the bill was supported by the mayor and planning department.
• Stephen West (ILWU) supported with caveats: properties must have security, housekeeping, front desk, and sustainable wages.
• Lauren Rago (Our Hawaii) opposed, presented updated Minatoya property analysis showing most properties are not hotels.
• Kaina Nishiki urged requiring a sunset provision for shoreline properties affected by sea level rise.
• Many other testifiers expressed support or opposition.

Discussion Items

• Bill 88 Overview: Chair Nohelani Uuhajans introduced the bill, noting it originates from TIG recommendations and would establish H3 and H4 hotel districts mirroring A1 and A2 apartment districts but allowing TVR uses phased out by Ordinance 5909. The bill does not rezone any properties; that would require separate future legislation.
• Planning Department Presentation: Deputy Planning Director Anna Lillis and Greg Post presented. The department supports the bill, noting it only creates zoning districts and does not affect any property. They recommended a slight modification to clarify that only properties meeting existing TVR criteria in A1/A2 can move to H3/H4. They also noted a technical correction on side setbacks (15 feet instead of 20 for buildings over 35 feet).
• Discussion: Councilmembers debated the bill extensively. Key points included: the need for a clean zoning category to avoid forcing properties into ill-fitting H1/H2 zones; concerns about non-conformity; the potential for additional units from the ~1,700 unlisted properties; and the importance of honoring commitments made during Bill 9 deliberations. Councilmember Johnson urged site visits and expressed concern about a blanket approach. Councilmember Rollins Fernandez opposed, citing planning commission denials and policy inconsistencies.
• Amendments:
  • Amendment 1 (Paulton): Added criteria to clarify that only properties meeting existing TVR criteria in A1/A2 districts (including notification and confirmation by the department before the effective date of the ordinance) are permitted in H3/H4. Also corrected a side setback on page 6. Passed 7-0-2.
  • Amendment 2 (Rollins Fernandez): Exempted the island of Molokai from the H3 and H4 districts, as recommended by the Molokai Planning Commission. Passed 7-0-2.

Key Outcomes

• Motion to recommend passage of Bill 88 (2026) on first reading, as amended, to the full council: Passed 6-1-2 (Ayes: Chair Uuhajans, Chair Lee, Councilmembers Cook, Paulton, Senancy, Sugimura; No: Councilmember Rollins Fernandez; Excused: Councilmembers Batangan and Johnson).
• The bill will now proceed to the full Maui County Council for consideration.
• The committee also directed staff to incorporate the amendments into the bill text.
• The meeting adjourned at 4:15 p.m.