Higher fees for B&Bs proposed

WAILUKU - Most bed-and-breakfast owners would pay more to set up shop under a new fee schedule proposed by the county Planning Department.

The new fees come in wake of the passage of legislation establishing regulations for bed-and-breakfasts by the Maui County Council earlier this spring. Planning Director Jeff Hunt said the higher fees would help cover the cost of processing permits, but an advocate for the vacation rental industry said they were too onerous and could discourage bed-and-breakfast owners from complying with county regulations.

The council's Budget and Finance Committee is considering the proposed fees as part of its ongoing review of the annual county budget.

Under the Planning Department's proposal:

* An initial bed-and-break-fast permit would cost $400 with an additional $550 if a public hearing is required.

* Permits approved for two years would cost an additional $200, three years would cost an additional $400. Permits approved for one year would face no extra charge.

* Permits extensions would cost $300, plus an additional $200 to $800 for extensions between two and five years.

Currently, bed-and-break-fast fees are set depending on the type of permit required. Permits that need only administrative approval cost $110 with a $55 annual extension; if planning commission review is required, the cost is $330 with a $110 annual extension; County Council review costs $440 with a $220 annual extension.

Hunt said the proposed higher fees reflected the greater amount of Planning Department review required under the new bed-and-breakfast ordinance. In addition, an audit of the department in 2005 found that most permit fees are too low to cover the cost of processing, he noted.

But Thomas Croly of the Maui Vacation Rental Association said the proposed fees were too high.

He said a fee of $250 with a $60 annual renewal would be a "reasonable compromise."

If the fees are too high, they could push bed-and-breakfast owners to try to skirt county regulations, he said.

* Ilima Loomis can be reached at iloomis@mauinews.com.