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The Honolulu Advertiser
Updated at 3:18 p.m., Sunday, August 31, 2008

Celebrity status earns no points for TVRs in Kihei

By CHRIS HAMILTON
The Maui News

WAILUKU — Prince, Michael Jackson, Mel Gibson and Mike Myers may not be back as visitors to a massive Keawakapu transient vacation rental home after a decision Tuesday by the Maui Planning Commission.

The Maui News reported that commissioners voted unanimously to recommend that the Maui County Council reject conditional use permits applications by Maui Blue LLC to continue to operate three vacation rentals in R-3 residential districts along the shoreline at Keawakapu and at Halama Street. Commissioners and Planning Department staffers said no matter how famous the customers are, short-term rentals don't belong in these quiet neighborhoods.

Maui Blue and the homes are owned by Charles Thieriot of San Francisco. The largest, called Sandy Surf, is 15,000 square feet and has 10 bedrooms.

Thieriot's representative, planning consultant Mich Hirano, said the home is popular among celebrities who often desire privacy and travel with large entourages, security staff and family members.

"Can Maui afford to turn these customers away?" Hirano asked. "If these accommodations are not available, these people will go to other locations where their needs can be met."

He said the Sandy Surf at 3244 S. Kihei Road is where Gibson, Jackson, Myers and Prince have stayed. It helps fill an important niche market. Continuing to provide these vacation rentals is essential to Maui regaining its reputation as the best island in the world, Hirano argued.

But Samuel Dolphin, who lives near Maui Blue's Mango Surf short-term rental at 1490 Halama St., said he wasn't impressed with Hirano's "name dropping."

"That doesn't mean anything to me," Dolphin said.

He said his street is filled with illegal vacation rentals and visitors often disturb the neighborhood's peace with all-night parties. The tranquility he and his artist wife worked their whole lives to achieve on Maui is constantly disrupted by inconsiderate renters and their irresponsible landlords, he said.

Commissioner William Iaconetti also was not swayed by Hirano's arguments. The island has plenty of high-end private accommodations within the hotel/resort districts where they are intended to be, he said.

"I have a hard time believing that Maui cannot afford to attract the kind of celebrity client you described," Iaconetti said to Hirano.

He also questioned why the county should give special treatment to Thieriot, a landlord who doesn't live on Maui and pays nominal taxes here compared to island residents.

County planner Paul Fasi said all three Maui Blue vacation rentals, including the Plumeria Surf at 3254 S. Kihei Road, are situated in dense neighborhoods.

"You can literally throw a stone in almost any direction and hit another home," Fasi said.

The short-term rentals do not have on-site managers, a standard the county requires for permitted bed-and-breakfast operations in residential zones.

Bed and breakfasts are rentals in which the homeowners rents rooms within their homes.

The County Code provides permits for bed and breakfasts, but bans short-term rentals except in resort/hotel districts. The county has been allowing transient vacation rentals - short-term rentals in which the owner does not live in the rental house - by conditional permit.

Maui Blue LLC was seeking conditional permits for all three properties.

Fasi said the county has received complaints about the homes in question, as well as a several letters from neighbors in support. But, overall, he said, the three vacation rentals are severely inconsistent with the code and Kihei-Makena Community Plan. These neighborhoods were never intended to be locations for short-term rentals, he said.

Hirano argued that the Plumeria Surf and Sandy Surf vacation rentals are adjacent to the Wailea Resort.

County planners said the houses are set up exclusively for business purposes, the largest of which costs up to $9,000 a night to rent. The Planning Department recommended against the applications.

Iaconetti said the commission's decision may contribute to the county's goal to increase housing stock and long-term rentals.

However, Commissioner Ward Mardfin said the owner could just decide to let the homes sit empty, as they have been since January, the deadline the administration set for vacation rental operators to get permits or shut down.

The administration began issuing warnings to nonpermitted short-term rental operators shortly after Mayor Charmaine Tavares took office, saying many vacation rentals damage the character of neighborhoods, deplete a already stunted long-term rental housing supply and keep affordable homes off the market.

Opponents say vacation rentals are essential to maintaining the island's tourism-based economy and have sought numerous compromises with Tavares and Planning Director Jeff Hunt.

While denying Maui Blue, the commission on Tuesday recommended approval for a bed-and-breakfast permit for Tonaz Foadi for Maui Beach Bed and Breakfast at 4780 Lower Honoapiilani Road in Napili. The vote was 5-1 with Mardfin voting no and Vice Chairman John Guard IV abstaining.

The Planning Department and Tavares have taken a sunnier view on bed and breakfasts, since the owners live on site and often have more support from neighbors.

The commission deferred making a decision until mid-October on an application by Jay and Kathy Wisthoff to operate their six-bedroom Hoolio House vacation rental on agricultural land at 138 Awaiku St. in Lahaina. The couple's daughter and son-in-law live in an ohana unit on site and manage the property, which includes productive orchards as well as sellable tropical plants and flowers.

Commissioners said they wanted more up-to-date information from the couple before voting on the applications for a state Land Use Commission special use permit and county conditional use permit.

For more Maui news, visit www.mauinews.com.