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Kona rental owner could faces fines
Planning department accuses Alii Drive business of running hotel
by Erin Miller
West Hawaii Today
emiller@westhawaiitoday.com
Sunday, May 17, 2009 7:02 AM HST
The Planning Department issued a cease-and-desist letter to property owners allegedly running a hotel out of a single-family home.

Planning Director Bobby Jean Leithead-Todd said her department mailed the letter to the Kona Sugar Shack Vacation Inn May 5 after receiving an anonymous complaint.

"We had a complaint alleging that there was a hotel business with units and illegal kitchens," Leithead-Todd said. "If they can't satisfy us that we are wrong, we'll start issuing fines."


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The location, a 3,532-square-foot house zoned single-family residential, sits on about a quarter of an acre across from Laaloa Beach on Alii Drive in Kailua-Kona. The inn's Web site advertises three suites, one with a full kitchen, one with a small stove and kitchen appliances and one with an outdoor kitchen, that can house up to 15 people.

Owner John McCaskill said he isn't running a hotel. The use of the word "inn" as part of the property name was done to help with marketing, he claimed.

"It's a vacation property," he said. "We never meant to be a hotel."

He denied that the property had or advertised full kitchens with each suite. He was already working to remove the stove from the property's downstairs ohana, which would help bring him into compliance.

Further, he said, he doesn't understand why the Planning Department is scrutinizing his property when neighbors also operate vacation rentals, some possibly not permitted.


"We're not trying to do anything illegal," McCaskill said. "We operate like any of the other vacation properties."

McCaskill purchased the home in 2000. The previous owner also used it as a vacation rental, he said.

A Planning Department inspector checked property records for permits, online for advertisements and the property for signs. Leithead-Todd said the inspector found no special permits, but did find ads and signs indicating the house was being used as a hotel.

The cease-and-desist letter instructed the property owners to stop using the house as a hotel, to remove the kitchens and all signs indicating the property was a hotel and to schedule an appointment with a surveyor to determine whether some of the items on the property encroach on the setbacks around the location.

Those actions must be completed by June 30, or the county will fine the owners $1,500 to $2,000, followed by a $100 fine each day thereafter, Leithead-Todd said. The owners have the right to appeal.


"I think we have evidence they're doing something they're not supposed to," the planning director said.

Hawaii County code does not distinguish between short-term and long-term rentals and does not require a special permit for a vacation rental. The county does require special permits for bed and breakfasts, Leithead-Todd said. The presence of multiple kitchens at the McCaskill property is one of the ways to determine whether the property is a vacation rental or a hotel.

Since taking the planning director post, Leithead-Todd has issued about one violation letter a month, she said.





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There are 2 comment(s) comments to this story.

zarley2k wrote on May 19, 2009 9:50 PM:

" The Planning Director should be applauded for taking actions to ensure that the requirements of conditional permits are complied with.
I'm not sure that Ms Miller's description of the alleged violations are accurate. "

s_troop2 wrote on May 17, 2009 9:34 AM:

" "Leithead-Todd said. "If they can't satisfy us that we are wrong, we'll start issuing fines."
So much for "innocent until proven guilty". Here in Hawaii County you must PROVE your innocence. All this because of a stove and the word INN?? "

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