PAIA – A Paia businessman with a history of run-ins with neighbors and Maui County building and zoning inspectors has run afoul of them again.

This time the stakes are higher for Michael Baskin. He faces $119,000 in civil fines and a county order that he close two short-term rental businesses next month.

Since May, the county Department of Planning has revoked two short-term rental permits and issued 26 notices of zoning and special management area violations against five properties owned, partially owned or operated by Baskin. Those include short-term rental properties called Paia Place, Paia Pad and Paia Life.

The Paia Inn at 93 Hana Highway and a parking lot at 75 Hana Highway also have notices of violations pending, both for failing to get a special management area determination or an SMA permit. Civil fines against the inn amount to $30,000 and those against the parking lot $50,000, according to May 28 notices of violations.

Baskin is appealing those violations and fines, according to Department of Planning Director Will Spence.

Neighboring Paia landowner Francine K. Aarona said it’s about time for the county to take enforcement action against Baskin.

“Michael Baskin has been upsetting the apple cart since he arrived in Paia,” she said this month. “He seems to think he owns the whole town. He’s a very shrewd man. He’s really nice and say things and then do completely the opposite.”

When Baskin gets caught with unpermitted work on his properties, “he always goes back . . . after the fact” to get permits, she said. “He’s been getting away with it all this time. No more. We’re saying no more. He is doing illegal things, and we want it stopped.”

In a written response this month to the permit revocations and complaints, Baskin said: “It is painfully clear that we are now involved in disputes with our neighbors that have spun out of control, and as a result the county has become involved in a manner that threatens the continued operation of the inn.

“These past few months have been among the most difficult, sad and frightening times our family has ever faced,” he said. “All of our hard work, and all that we have invested is suddenly at risk. Perhaps the most troubling part of this whole situation to us is that our neighbors feel we have not been pono in our words and deeds . . .

“We acknowledge and take responsibility for anything we’ve done that has created bad feelings, made for poor communication or has created misunderstandings or disputes,” he said. “We are committed to doing all that we can to earn the trust of those of our neighbors who have felt in any way disrespected by listening to their concerns, working with them to find win-win solutions where possible and continue to be a valued and respected member of our community.”

Regarding Aarona specifically, Baskin said: “She is a respected elder in the community. We have tremendous respect for her and her family. We have made an effort over the years to be good neighbors and respond quickly to her requests.”

Baskin said his problems with land-use citations stem from owning several properties in Paia, including some with structures that date back to the 1920s.

“The county process to bring old properties into compliance with the new codes is very difficult, and the county imposes unreasonable violations on property owners,” he said. “The county can impose a fine immediately, without a warning, to correct the violation if there is a complaint from a neighbor. But they can take more than six months to issue an SMA permit to correct the problem and over a year to issue a building permit. So the whole process of trying to bring things into code is an arduous and expensive process.”

And, regarding the charge that he habitually seeks after-the-fact permits for unpermitted work, Baskin said: “We do seek after-the-fact permits whenever necessary. The fact is that most of these after-the-fact permits were secured to bring pre-existing buildings, constructed before permitting was necessary, into compliance. In addition, in the course of a repair or maintenance project, unanticipated things can arise, and after-the-fact permitting becomes necessary.”

He maintained that seeking such permits shows that “we are doing our best to be in compliance with county requirements.”

Baskin stressed that “if, indeed, we are not in compliance, we intend to work with the county to remedy those situations.”

He said the county’s enforcement process is primarily complaint driven, and “enforcement actions can arise in an arbitrary manner based on personal animosities or business competition considerations . . . rather than as a result of deliberate and material violations of the law that affect public health or safety.”

Baskin said that, “in our case, it is pretty well-known that in large measure the current permit complaints have been instigated by our adjoining neighbor Flatbread (a pizza restaurant). The fact is that we have had some disputes over property boundary issues, fire exits and related access concerns and our plans to open a competing restaurant.”

When asked for comment Thursday, Josh Stone, one of the Flatbread Co. owners, said: “I needed a good holiday laugh. This is the first I’ve heard of a restaurant coming to Paia Inn. What kind of restaurant is it going to be because Paia could use good Chinese food. I wish them the best of luck.”

Also Thursday, Maui County Council Member Mike White, who holds the council’s Makawao-Haiku-Paia residency seat, said that last spring he was asked by Paia residents to meet with them and to view a number of alleged land-use violations on Baskin properties.

The neighbors felt “some degree of intimidation” from Baskin, he said.

White said he saw an instance where two bedrooms were added to a house, and the additions brought the structure right up to a property line where there should have been a setback. And, there were concerns about shoreline setbacks, he said.

The council member said he found the neighbors’ concerns to be “valid,” but they were “all very hesitant to take any specific filing action with the Planning Department.” So, he said, he offered to file a request for county action on their behalf.

White said that what he saw pointed to “somebody not following the rules” and getting away with it. “I took the action on behalf of my constituents,” he said.

On May 30, White submitted a request for the county to look into complaints about Baskin’s properties.

Since then, “I believe the Planning Department has done an outstanding job in following up on this,” he said. “I am stunned by the amount of violations . . . Not in my wildest imagination did I think there would be that many violations.”

In the permit revocation letters for the Paia Place and Paia Pad properties, Planning Director Spence said there was “false and misleading” information during both application processes for short-term rental permits.

For example, in the case of the Paia Place property, an additional six bedrooms (only three were permitted) were identified in permit applications as being for other uses.

According to the notice of revocation, a room described as an “office” in permit applications is being advertised for rent as a “bedroom”; a “living room” as a “junior suite”; a “study” as a “second bedroom”; a converted garage area referred to as an “office” as a “junior suite”; and two “storage rooms” advertised as “deluxe rooms.”

Baskin took exception to the “false and misleading” charge.

“We respectfully disagree that any information we provided on applications was false or misleading in any material respect,” he said.

Baskin said the permit revocations came as a “big surprise” to him and his wife, Sarah.

“We are working with the county and hope to have this decision reversed,” he said. “We were given no warnings whatsoever and no opportunity to cure anything.”

His properties in Paia were among the first to receive short-term rental permits under a new law, he said.

“We had several site inspections by the county and (by) a third-party home inspector appointed by the county prior to issuance of our permit,” he said. “We provided notices to all our neighbors within 500 feet for all of our short-term rental properties and received no opposition. We met all required guidelines and were issued a permit. Nothing has changed since those inspections other than adding a gazebo and a storage room.”

A search of county records showed Baskin had a land-use violation reported as early as May 2003 for a property at 465 Hana Highway that apparently was later resolved.

County records also reveal that, in December 2006, Baskin paid the county $50,000 for a mediated settlement for notices of violation for 21 and 27 Holo Place in Paia. The settlement agreement said the county would use the money for a beach nourishment project on Maui.

Baskin said he would appeal, if necessary, the county’s current allegations targeting his Paia properties.

“After operating in our current configuration since 2008, openly and with what we believe are all necessary permits and fully compliant with the law, in the past few months we have been subjected to many citations and complaints that threaten the survival of the inn and the devastating financial damages,” he said. “While we dispute much of what is alleged, we recognize that the county officials have difficult and important jobs to do, and we intend to work through these issues with them.”

* Brian Perry can be reached at bperry@mauinews.com.

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MAUI COUNTY NOTICES OF VIOLATIONS DETAILED

Property: Paia Inn Hotel, 93 Hana Highway

Owners: Michael Baskin, Seashore Properties

Date of notice: May 28

* Failure to obtain a special management area determination or an SMA permit for grading, grubbing and excavation; initial $30,000 civil fine; daily $10,000 fine if uncorrected.

Status: Appealed; hearing date not scheduled

*****

Property: Parking lot, 75 Hana Highway

Owners: Michael Baskin, Seashore Properties

Date of notice: May 28

* Failure to obtain a special management area determination or an SMA permit for a paved parking lot; $50,000 fine; daily $10,000 fine.

Status: Appealed; hearing date not scheduled

*****

Property: Paia Place, 95-B Hana Highway

Owners: Michael Baskin and Walter Hillinger

Date of notice: Nov. 27

Permit: Short-term rental home, three bedrooms allowed (Permit revoked Nov. 27. Operations to stop Jan. 26.)

Nine notices of violation (corrective action by Friday, or daily fines start):

* Failure to obtain a special management area determination or an SMA permit for wooden walls surrounding the property; initial $2,000 civil fine; $1,000 per day fines, if uncorrected in a month.

* Failure to obtain a special management area determination or an SMA permit for a rear “housekeeping” structure attached to a wet bar and covered patio; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for a front storage shed; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for a rear structure containing a water heater and propane tank; $2,000 fine; $1,000 daily fines.

* Violation of the county zoning code with the main dwelling converted into three dwelling units; $1,000 fine; $1,000 daily fines.

* Violation of the county zoning code with a rear storage structure located within a 6-foot rear yard setback; $1,000 fine; $1,000 daily fines.

* Violation of the county zoning code with a shed located within a 15-foot front yard setback; $1,000 fine; $1,000 daily fines.

* Violation of the county zoning code with a housekeeping structure attached to a wet bar and covered patio within a 6-foot rear yard setback; $1,000 fine; $1,000 daily fines.

* Violation of the county short-term rental zoning code with renting rooms not allowed under the ordinance; $1,000 fine; $1,000 daily fines.

Total fines: $13,000

Status: Notices hand-delivered to property owner.

*****

Property: Paia Pad, 40 Ae Place

Owners: Michael Baskin and Naomi Hillinger

Date of notice: Nov. 27

Permit: Short-term rental home, three bedrooms allowed (Permit revoked Nov. 27. Operations to stop Jan. 26.)

Three notices of violation (corrective action by Friday):

* Failure to obtain a special management area determination or an SMA permit for wooden walls surrounding the property; initial $2,000 civil fine; $1,000 per day fines, if uncorrected in a month.

* Violation of county zoning code with a main dwelling converted into two dwelling units; $1,000 fine; $1,000 daily fines.

* Violation of the county short-term rental zoning code with renting a room in a converted garage not allowed under the ordinance; $1,000 fine; $1,000 daily fines.

Total fines: $4,000

Status: Notices hand-delivered to property owner.

*****

Property: Paia Life, 23 Nalu Place, Paia

Owners: Paia Life LLC (Michael Baskin)

Date of notice: Nov. 27

Permit: Short-term rental home (Permit not revoked)

12 notices of violation (corrective action by Friday):

* Failure to obtain a special management area determination or an SMA permit for wooden walls surrounding the property; $2,000 civil fine; $1,000 daily fines if not corrected in a month.

* Failure to obtain a special management area determination or an SMA permit for a shower shed; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for a right side addition to the main dwelling; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for building a rock seawall; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for a front storage shed; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for a cabana structure; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for a rock seawall within 25 feet of the shoreline; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for a shower shed built within 25 feet of the shoreline; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for wooden walls and a gate within 25 feet of the shoreline; $2,000 fine; $1,000 daily fines.

* Failure to obtain a special management area determination or an SMA permit for a cabana structure built within 25 feet of the shoreline; $2,000 fine; $1,000 daily fines.

* Violation of the county zoning code with a shower shed located within a 6-foot side yard setback; $1,000 fine; $1,000 daily fines.

* Violation of the county zoning code with a front shed located within a 15-foot front yard setback; $1,000 fine; $1,000 daily fines.

Total fines: $22,000

Status: Notices hand-delivered to property owner.

Grand total: Five properties, 26 notices of violations, $119,000 in civil fines