KEY QUESTIONS RELATED TO

PROPOSED LEGISLATION AMENDING

PERMITTED USES IN HOTEL DISTRICTS

Prepared by the
Committee to Review the Proposed Bill to Amend the Hotel District Ordinancea
May 11, 2009

What is the purpose of the hotel “stacking” bill?

Eliminate “stacking” of permitted uses in the Hotel Zoning District (i.e., H-1, H-2 and H-3 zoning
districts. See Exhibit “A” for copy of Bill for Ordinance.

Who are the stakeholders who may be affected by the bill?

1. Hotel Owners/Operators
2. Homeowners Associations of condominium complexes having an underlying hotel zoning
designation
3. Apartment complex owners having apartment buildings in one of the hotel zoning districts
4. Individual owners of condominiums units or single-family residences located on lands with
an underlying hotel zoning designation
5. Timeshare owners

What does “Stacking” mean?

The Maui County Zoning Ordinance (Chapter 19 of the Maui County Code) defines permitted uses
for each zoning category. In some instances permitted uses in one zoning category includes uses
from another zoning category. In the “Hotel” zoning districts, for example, permitted uses currently
include any use permitted within the residential and apartment zoning districts. This method of
identifying permitted uses in a particular zoning category through referencing permitted uses in other
zoning categories is referred to as “stacking”.

What zoning districts will the bill affect?

The H-1, Hotel; H-M, Hotel; and H-2, Hotel zoning districts would be affected.

What are the effects of the bill?

a
The Committee to review the Proposed Bill to Amend the Hotel District Ordinance is a group of concerned
residents and business leaders seeking to ensure that the proposed bill for ordinance can be fairly applied
without detriment to existing owners and tenants.

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In the case of the proposed hotel “stacking” bill, only hotels, apartment-hotels, auditoriums and
theaters, automobile parking lots and buildings, non-profit uses, and related accessory uses will be
permitted in the Hotel Zoning District. Other uses, such as residential condominiums, residential
apartments, single-family residences which are currently allowed, will no longer be permitted.

The proposed hotel stacking bill would eliminate or place restrictions on future uses already allowed
in the hotel district. Placing restrictions and limits to the development of these uses would pose
economic impacts to the building and construction industries.

The proposed bill may also have a detrimental economic impact to owners of single-family and
apartment residences who, on hotel zoned property, wish to make renovations, carry out extensive
repairs to their units, or sell their property. Impacts to property values may be experienced with the
elimination of uses currently allowed in Hotel districts.

What is the primary area of potential concern for stakeholders?

The key issue for stakeholders relates to the notion of “nonconformity”. That is, if the bill for an
ordinance is adopted and non-hotel uses such as condominiums, apartments, and single-family
residences are no longer permitted in the hotel zoning district, these uses become non-conforming.
That is, they can continue operating if they are already established, but limitations are imposed which
may affect their continued viability. The allowance of the existing use to continue is sometimes
referred to as “grandfathering”, however, it can come with future problems since it will be a non-
conforming use within the district.

What does “nonconformity” mean to stakeholders?

The Maui County Code has strict limitations on nonconforming uses. These limitations would apply
to residential condominiums, apartments and single-family residences if the proposed hotel
“stacking” bill is approved. Here are a few of the applicable provisions which may need to be
considered by stakeholders.

1. Work may be done on any structure devoted in whole or in part to any nonconforming use;
provided that work is limited to ordinary repairs, including repair or replacement of walls,
fixtures, wiring or plumbing.
2. Ordinary repairs shall not exceed fifty percent of the current replacement cost of the structure
within a twelve-month period, and the floor area of the structure, as it existed at the time the
nonconforming use was created, shall not be increased. Further, “ordinary repairs” is not
defined in the County Code; left to discretion of each plan reviewer.
3. Any nonconforming use that is discontinued for twelve consecutive months shall not be
resumed.
4. If a nonconforming structure is destroyed by any means to an extent of more than fifty
percent of its replacement cost at the time of destruction, it shall not be reconstructed unless
the nonconforming structure is a historic property as defined by Hawai`i State law. In
addition, no nonconforming structure that is voluntarily razed or required by law to be razed

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 by the owner may be restored except in full conformity with the provisions of the zoning
code.

What are the important questions which need to be clarified for stakeholders?

1. A hotel owner chooses to convert a portion of hotel property into a condominium ownership
format, where condominium owners can place their units back into the hotel rental pool.
Will this be permitted?
2. If a fire or hurricane damages a common area element of a residential condominium property
located on hotel zoned property, and the value of repairs exceed 50% of the replacement
value of the structure, is it true that the homeowners association will not be able to rebuild
the structure?
3. If such repairs are less than 50% of the replacement value of the structure, but involves work
over and beyond “ordinary repairs”, such as replacing a load-bearing wall and related
structural roof and flooring members, can this work be undertaken by the homeowners
association?
4. If an owner of a residential condominium located on a hotel zoned property wishes to update
his unit, and the value of that remodeling exceeds 50% of the replacement value of the
current improvements, will this be permitted?
5. If a residential condominium unit located on a hotel zoned property is damaged by fire or
flooding, and the value of restoring the unit to its original condition exceeds 50% of the
improvements being replaced, can the owner of the unit do the work?
6. Since owners of condominiums and single-family residences located on hotel zoned
properties will need to disclose nonconforming conditions in any sales transactions, how will
such disclosure affect an owner’s ability to sell his or her property?
7. Structures that have grandfathered uses are limited to ordinary repairs. How will this affect
the ability of landowners to obtain insurance for structures that have grandfathered uses?

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 ORDINANCE NO. _______________

BILL NO. ____________ (2006)

A BILL FOR AN ORDINANCE AMENDING SECTION 19.14.020, MAUI COUNTY CODE,

RELATING TO PERMITTED USES IN HOTEL DISTRICTS

BE IT ORDAINED BY THE PEOPLE OF THE COUNTY OF MAUI:

SECTION 1. Section 19.14.020, Maui County Code, is amended to read as follows:

“19.14.020 Permitted uses. Within hotel districts, the following uses

shall be permitted:
A. [Any use permitted in residential and apartment districts;
B. ]Hotels;
[C.] B. Apartment-hotels;
[D.] C. Auditoriums and theaters;
[E.] D. Automobile parking lots and buildings;
[F.] E. Bona fide nonprofit clubs and lodges;
[G.] F. Nonprofit museums, libraries[ and], art galleries, and philanthropic
institutions;
[H.] G. Accessory uses:
1. Accessory buildings, the use of which is customary and incidental,
usual, and necessary to that of the main building or to the use of the land;
2. Bar,
[2.] 3. Barber shops,
[3.] 4. Beauty parlors,
[4.] 5. Dancing and hula studios,
6. Day care nurseries,
[5.] 7. Flower shops,
[6.] 8. Gift and curio shops,
9. Greenhouses, flower and truck gardens, and nurseries;
[7.] 10.Haberdasheries,
[8.] 11.Massage studios,
[9.] 12.Music stores and studios,
[10.] 13. Newsstands and magazine stands,
[11.] 14. Pharmacies and drug stores,
[12.] 15. Restaurants, with or without nightclub facilities,
[13.] 16. Sandwich or coffee shops,
[14.] 17. Tour service agencies and travel ticket offices,
[15.] 18. Wearing apparel shops,

Exhibit "A"
 [16.] 19. Other accessory, business, or service establishments which
supply commodities or perform services primarily for the hotel guests; however,
such uses shall be approved by the commission as conforming to the intent of this
title;
[I.] H. Restrictions on accessory uses:
1. All such hotel and apartment-hotel buildings in which such
accessory uses shall be permitted and allowed shall contain more than twenty
rooms, and such accessory uses shall be permitted and allowed only as an adjunct
to, and as part of, the main building and no other,
2. All such personal service shops and businesses shall be operated
primarily as a service to, and for the convenience of, the tenants and occupants of
the buildings in which such services are located,
3. Where the lot area is in excess of twenty thousand square feet,
doors and entrances to such shops and businesses may be allowed to open to the
public street, further, the shops and businesses may be constructed as separate
buildings; provided, that location of such shops and businesses shall have been
approved by the commission.”

SECTION 2. Material to be repealed is bracketed. New material is underscored. In

printing this bill, the County Clerk need not include the brackets, bracketed material, or the

underscoring.

SECTION 3. This ordinance shall take effect upon its approval.

APPROVED AS TO FORM AND LEGALITY:

Department of the Corporation Counsel

County of Maui

paf:cmn:05-217a

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