The city Planning Commission held off on voting on a proposal yesterday to lift the ban on bed-and-breakfast operations, after spending nearly three hours listening to arguments from both camps.

More than 125 people came out yesterday afternoon for the hearing, much of which was dedicated to allowing those who have not yet testified at meetings on two bed-and-breakfast bills a chance to speak.

The commission will take up the issue again Jan. 30. The bills will go before the City Council after the review by the city Planning Commission.

Attendees at the hearing were split between opponents of bed-and-breakfast operations, who say the businesses chip away at the sense of place in neighborhoods and cause a nuisance, and supporters, who argue that the businesses thrive around the world and offer tourists a unique stay.

Larry Bartley, executive director of Save O'ahu's Neighborhoods, worries that allowing bed-and-breakfast operations will mean an influx of the businesses in neighborhoods islandwide. He said the City Council members who proposed a lift on the ban are "out of touch."

Another opponent called the vacation rental industry "organized crime," alluding to illegal rental operations that do not have permits.

But Rachel Weyenberg, who has cleaned and managed vacation rentals in Waimanalo and Kailua, said visitors can be good neighbors — if there are good rules in place. "The issue here should be regulation," she said. "There is a place for B&Bs. Our economy here does thrive."

Bed-and-breakfast supporters also argue that regulating the industry — instead of banning it — would address the concerns of some neighbors, while allowing more bed-and-breakfasts to meet a growing demand.

One proposed amendment taken up yesterday calls for the repeal of the existing bed-and-breakfast law, allowing them in residential communities, while also setting up ways for neighbors to block the homes.

A second amendment also being considered by the Planning Commission requires transient vacation units, including bed-and-breakfasts, to include the permit number and addresses for units in advertisements. And it establishes fines for noncompliance.

If passed, the amendments would dramatically overhaul the city ordinance on short-term rentals passed in 1989, which banned opening new bed-and-breakfasts. Currently, there are fewer than 100 legal bed-and-breakfasts operating under nonconforming use permits.

Bed-and-breakfasts can take in renters for less than 30 days. About 1,000 owners have permits to rent an empty home for less than 30 days, although those operations are not strictly considered bed and breakfasts.

Many other vacation rentals are operating without permits.

Angie Larson, coordinator for Homes of Hospitality of Hawai'i, said many vacation rental and bed-and-breakfast operators want to work with their neighbors and the city to hammer out a solution amenable to all.

The organization represents about 400 vacation rental operators.

"We work to be self-regulating," she said, in a written news release, "putting together a process to take care of complaints, resolve issues and work with neighborhood boards and city government."

Karin Holma, chairwoman of the Planning Commission, said members are taking into account the tensions between opponents and supporters of the bills. "It's created really hard feelings," Holma said. "It's really a difficult issue. Both sides have very valid points."

The growing controversy over bed-and-breakfasts and transient vacation rentals came to a head two years ago, when residents took their concerns to neighborhood boards and the City Council.

The most vocal opponents to the businesses live in Kailua and Lanikai, where there are a host of vacation rentals. Residents of Manoa, Waimanalo, 'Ewa Beach and other communities have also voiced concerns, while some residents have supported lifting the ban.

Planning commission members did not voice their opinions on the amendments yesterday. Though members are expected to vote on the bed-and-breakfast bills on Jan. 30, the vote could be deferred again.

It's still unclear when the amendments will go before the City Council.

Some attendees were still not sure how the bills would work.

Suzanne Gilbert asked how the city Department of Planning and Permitting would regulate the industry, especially a provision that would limit one bed-and-breakfast home per 500 feet.

"Who's going to get that one coveted vacation rental in my neighborhood?" Gilbert asked.

Reach Mary Vorsino at mvorsino@honoluluadvertiser.com.