WAILUKU - Maui County is seeking more than $800,000 in civil fines from a Waiehu couple who operate the School of Tantra offering, among other things, "dating, mating and relating" classes.
The county's lawsuit against Janet "Kira" and Alex "Sasha" Lessin alleges they have been running an illegal short-term rental operation by providing visitor accommodations to seminar participants since at least August 2006, when a county inspector reviewed Web site material for the property.
Deputy Corporation Counsel Jane Lovell said that while the school appears to be legal, the county takes issue with the couple offering visitor accommodations on the upper portion of Malaihi Road.
When the case first began less than three years ago, the School of Tantra Web site said, "Enjoy seven days of exotic erotic fun in paradise!" Lovell said. "So we said, 'Aha, this is still a violation of short-term rentals, once we say that they advertised to provide accommodations there."
The county's penalty for the Lessins, now about $800,000 in fines, increases by $1,000 a day for allegedly continuing to operate an unpermitted transient vacation rental at their compound at 1371 Malaihi Road.
"We're not even doing short-term rentals; we never did it here," said Janet Lessin when contacted by phone Thursday. "It's my home, and I'm running a farm right now. And we have a church. It's just absurd . . . I'm just totally blown away."
The Lessins said they do not offer retreats at the property because home-based businesses are not allowed on agricultural property. They had a center in Wailuku, but had to close it in November because of the poor economy, she said.
Now, they only offer the occasional classes, which often have sexual themes, or therapy sessions in rented community rooms or maybe while taking a hike, she said. However, a look at the March calendar of events on the couple's Web site was nearly filled with activities.
Lessin said she and her husband have not seen a copy of the complaint yet, and she never received any notices or fines from the county. She was shocked to learn about the complaint, she said.
Lovell said the Lessins had directed the county to deliver all paperwork to their lawyers.
It is by far the largest civil case to date against a vacation rental operator in Maui County. The next biggest fine was last summer and involved a $214,000 penalty, but negotiations reduced the amount to $35,000.
According to the civil complaint against the Lessins, which was filed March 5 in 2nd Circuit Court, Planning Department inspectors went to the property Aug. 8, 2006, after receiving a complaint from a guest. They said they found four structures on the property with multiple rooms and kitchens as well as people staying there.
(The property is near Kope Gulch where floodwaters flipped over a Jeep Cherokee and swept three people to their deaths in January 2002.)
Over the next two months, the inspectors issued three violations for operating a vacation rental without the proper permits and having single-family homes with more than one kitchen. The Lessins appealed the decision to the county Board of Variances and Appeals. They lost their appeal on May 22, 2007. They did not appeal to state court.
"I thought it was all over," said Lessin, who said she is a counselor and her husband is a psychotherapist.
But, according to court documents, they never paid fines levied by the county, which would have been roughly $50,000 at the time of the board of appeals decision.
Negotiations for a settlement also never got anywhere, Lovell said. So the clock on the fines continues to run to this day. She said she doubts the county will back down much from the $800,000 figure since she does not believe the Lessins have made a good-faith effort to resolve the case.
And, if indeed they no longer operate short-term rentals, at this point it's the Lessins' responsibility to pay their fines and invite the inspectors out to clear up the matter for good, Lovell said.
When The Maui News inspected the Lessins' Web site Thursday, there was still a link for "accommodations." But it could not be accessed without a name and password.
Currently, vacation rentals are only allowed in select hotel/resort districts and not in residential or agricultural zones without county conditional use permits. In an agricultural zone, the applicants also need a special use permit from the state.
Obtaining a permit is a laborious, expensive and time-consuming process that short-term rental owners for years have tried to change and streamline. They continue to say it is an unfair process and the Maui Vacation Rental Association has tried unsuccessfully to halt Mayor Charmaine Tavares' crackdown on illegal vacation rentals.
However, last year - after months of Planning Committee meetings - the County Council passed a new ordinance that expanded the definition of bed-and-breakfast businesses and allowed them in agricultural and rural areas. The Planning Committee, which was given a new chairman, Sol Kaho'ohalahala, in January has yet to take up the more controversial vacation rental legislation, but has pledged to do so.
Proponents have maintained it is a vital piece of Maui County's tourism economy, especially on Molokai, Lanai and Maui's north shore. They say the county's actions have cost people their homes and caused related businesses to suffer unduly.
Tavares and vacation rental opponents have said that the transient accommodations can negatively impact neighborhoods with noise and excessive vehicle traffic.
* Chris Hamilton can be reached at chamilton@mauinews.com.
