May 11, 2009

RE: COMMITTEE TO REVIEW THE PROPOSED BILL TO AMEND THE HOTEL

ZONING DISTRICT ORDINANCE

Dear MHLA Members and Affected Parties:

A bill by the Maui County Council’s Planning Committee proposes to remove the current provision
that permits all residential and apartment uses in hotel zoning districts. The reference in the current
ordinances to the uses in the residential and apartment districts is called “stacking”. This bill would
remove the stacking provisions and would also effectively not allow apartments, condominiums and
single-family units to be built within the hotel zoning districts as is currently permitted. The bill was
referred by the County Council on March 6, 2009 to the County of Maui’s Planning Commission for
review and recommendations.

A quick review of the bill shows that it could substantially impact a great number of residents, hotel
operators and owners, and homeowners associations living on or conducting business within hotel
zoning districts. These impacts were not analyzed or quantified when the bill was originally drafted.
Howard Hanzawa of Ka`anapali Land Management Corp. presented testimony at the March 6, 2009
County Council hearing and stated that there could be many unintended consequences should the bill
pass in its current form. The bill was still referred by the County Council to the Planning Commission,
and Mr. Hanzawa was asked by the Council members to form a committee to assess the possible
impacts and to present testimony at the Planning Commission hearings.

A committee was put together composed of affected property owners and organizations, small
businesses, residents, and professional planners. Our committee met a number of times over the last
two months. As an affected party, our committee members felt that it was appropriate to share our
preliminary findings with you.

The committee developed questions and raised concerns involving severe limitations on future
improvements to properties and the permitting of repair and maintenance activities on existing
structures. These were identified among a number of key issues for potential stakeholders.

A summary of key issues and questions was formulated in a document to provide you with a better
understanding of the purpose of the proposed bill and to help you consider the anticipated impacts
should the hotel stacking bill be passed by the Maui County Council. Please see attached “Key
Questions Related to Proposed Legislation Amending Permitted Uses in Hotel Districts.”

1727-B Wili Pa Loop • Wailuku, HI 96793 • 808/244-8625 • 808/244-3094 fax • info@mauihla.org

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As a potential affected party that owns, leases, or resides on property designated within the hotel
district, our committee encourages you to submit written testimony or to personally testify at the Maui
Planning Commission hearing that is scheduled to review and make recommendations on this bill.
The Maui Planning Commission hearing will be held on May 26, 2009 at 9:00 am at the Planning
Department conference room on the first floor at 250 South High Street in Wailuku. Their
building is directly across from the Wailuku Library.

Please review the information provided in the attached summary to form your own conclusions. We
again encourage you to testify at the Maui Planning Commission hearing. Should you elect to submit
written testimony and in order to be considered by the Maui Planning Commission, we ask that you
mail your letter by May 15, 2009 to:

Maui Planning Commission

c/o Maui County Planning Department
250 South High Street
Wailuku, Hawaii 96793

Upon the committee’s review of the bill and after much deliberation of the anticipated impacts to
stakeholders, our committee will recommend to the Maui Planning Commission members that
they not support the bill and that the provisions of the hotel zoning ordinances be left
unchanged.

Should you have any questions about the hotel stacking bill or the attached information sheet please do
not hesitate to contact me at 244-8625 or creimann@mauihla.org.

Sincerely,

Carol Reimann
Executive Director

1727-B Wili Pa Loop • Wailuku, HI 96793 • 808/244-8625 • 808/244-3094 fax • info@mauihla.org