My name is Alison Pearce, and I am submitting this testimony in strong support of Bill 105 (2024), specifically advocating for the inclusion of nonconforming use language to expedite the rebuild of commercial properties on historical Front Street. As a commercial landowner of multiple properties on Front Street, including 632 Front Street (the former Paia Fish Market), I continue to face immense challenges in rebuilding my building and resuming business due to unnecessary permitting obstacles and delays.
The Need for Nonconforming Use Protections in the Rebuilding Process
Front Street was the heart of Lahaina’s economy filled with local small businesses. The devastation caused by the August 8, 2023, wildfires destroyed these properties, and while many landowners are ready to rebuild, the current nonconforming use regulations threaten to impede the recovery process.
Under existing laws, commercial structures that do not conform to updated zoning codes may face barriers to rebuilding, causing further financial distress for property owners who continue to pay mortgages, property taxes, and insurance on land that remains unusable. Without clear protections and exemptions for nonconforming uses, property owners risk being unable to restore their businesses as before the disaster. Economic loss over time threatens owners from rebuilding and the historic town of Lahaina being restored.
IRS Tax Code 1033: A Critical Three-Year Deadline
A crucial concern for landowners is the IRS Tax Code 1033, which mandates that disaster-affected properties must be reinvested in within three years of the wildfire (by August 8, 2026) to avoid severe tax penalties on insurance proceeds and other financial compensation. We are just about half way through the 3 years. If nonconforming use restrictions continue to delay or prevent rebuilding, landowners face additional financial hardship, potentially making reconstruction financially unfeasible.
To ensure Lahaina’s economic recovery and preservation, Bill 105 must include explicit language allowing commercial property owners in the burn zone to rebuild their businesses with the same pre-fire uses, even if they do not conform to current zoning laws.
Requested Amendments to Bill 105 (2024)
To facilitate the timely restoration of Lahaina’s business district, I strongly urge the committee to add language that:
Explicitly allows the reestablishment of nonconforming commercial uses in Lahaina’s burn zone, ensuring property owners can rebuild as their properties existed prior to August 8, 2023.
Waives or streamlines Special Management Area (SMA) permit requirements for rebuilding commercial properties in the burn zone, reducing unnecessary delays.
Extends the timeframe for reestablishing nonconforming uses to align with IRS Tax Code 1033, ensuring landowners have sufficient time to reinvest and restore their properties before facing tax penalties.
Conclusion
The ability to rebuild quickly and maintain Lahaina’s commercial integrity is critical to the recovery of both the local economy and the community. The inclusion of nonconforming use protections in Bill 105 will remove unnecessary roadblocks and allow businesses to return, jobs to be restored, and Lahaina to be rebuilt in a way that honors its history, culture and legacy.
I strongly urge this committee to amend Bill 105 (2024) to include clear protections for nonconforming commercial uses in Lahaina’s burn zone and to take action that supports local landowners, small business owners, and the economic future of Maui.
Thank you for your time and consideration.
Sincerely,
Alison Pearce
Commercial Landowner, 632 Front Street
TESTIMONY IN SUPPORT OF BILL 105 (2024) – AMENDING SECTION 19.500.110, MAUI COUNTY CODE, REGARDING NONCONFORMITIES
Submitted by: Robin Kean
Commercial Landowner, 632 Front Street (Former Paia Fish Market) & Additional Properties
Hearing Date: Wednesday, February 5, 2025 – 1:30 p.m.
Committee on Disaster Recovery, International Affairs, and Planning (DRIP)
Committee Chair: Tamara Paltin
Committee Vice-Chair: Nohelani U‘u-Hodgins
Voting Members: Tom Cook, Gabe Johnson, Tasha Kama, Alice L. Lee, Keani N.W. Rawlins-Fernandez, Shane M. Sinenci, Yuki Lei K. Sugimura
Dear Chair Paltin, Vice-Chair U‘u-Hodgins, and Members of the Committee,
My name is Robin Kean, and I am submitting this testimony in strong support of Bill 105 (2024), specifically advocating for the inclusion of nonconforming use language to ensure the expedited rebuilding of commercial properties in Lahaina’s burn zone. As a commercial landowner of multiple properties on Front Street, including 632 Front Street (the former Paia Fish Market), I continue to face immense challenges in restoring my properties due to unnecessary permitting obstacles and delays.
The Need for Nonconforming Use Protections in the Rebuilding Process
Front Street was the heart of Lahaina’s economy, home to small businesses, local restaurants, and cultural landmarks that drew residents and visitors alike. The devastation caused by the August 8, 2023, wildfires destroyed these properties, and while many landowners are eager to rebuild, the current nonconforming use regulations threaten to impede the recovery process.
Under existing laws, commercial structures that do not conform to updated zoning codes may face barriers to rebuilding, causing further financial distress for property owners who continue to pay mortgages, property taxes, and insurance on land that remains unusable. Without clear protections and exemptions for nonconforming uses, property owners risk being unable to restore their businesses as they existed before the disaster, resulting in economic displacement and loss of Lahaina’s historic character.
IRS Tax Code 1033: A Critical Three-Year Deadline
A crucial concern for landowners is the IRS Tax Code 1033, which mandates that disaster-affected properties must be reinvested in within three years of the wildfire (by August 8, 2026) to avoid severe tax penalties on insurance proceeds and other financial compensation. If nonconforming use restrictions delay or prevent rebuilding, landowners face additional financial hardship, potentially making reconstruction financially unfeasible.
To ensure Lahaina’s economic recovery and preservation, Bill 105 must include explicit language allowing commercial property owners in the burn zone to rebuild their businesses with the same pre-fire uses, even if they do not conform to current zoning laws.
Requested Amendments to Bill 105 (2024)
To facilitate the timely restoration of Lahaina’s business district, I strongly urge the committee to add language that:
Explicitly allows the reestablishment of nonconforming commercial uses in Lahaina’s burn zone, ensuring property owners can rebuild as their properties existed prior to August 8, 2023.
Waives or streamlines Special Management Area (SMA) permit requirements for rebuilding commercial properties in the burn zone, reducing unnecessary delays.
Extends the timeframe for reestablishing nonconforming uses to align with IRS Tax Code 1033, ensuring landowners have sufficient time to reinvest and restore their properties before facing significant tax penalties which will keep majority from rebuilding.
Conclusion
The ability to rebuild quickly and maintain Lahaina’s commercial integrity is critical to the recovery of both the local economy and the community. The inclusion of nonconforming use protections in Bill 105 will remove unnecessary roadblocks and allow businesses to return, jobs to be restored, and Lahaina to be rebuilt in a way that honors its history and legacy.
I strongly urge this committee to amend Bill 105 (2024) to include clear protections for nonconforming commercial uses in Lahaina’s burn zone and to take action that supports local landowners, small business owners, and the economic future of Maui.
Thank you for your time and consideration.
Sincerely,
Robin Kean
Commercial Landowner, 632 Front Street
My name is Alison Pearce, and I am submitting this testimony in strong support of Bill 105 (2024), specifically advocating for the inclusion of nonconforming use language to expedite the rebuild of commercial properties on historical Front Street. As a commercial landowner of multiple properties on Front Street, including 632 Front Street (the former Paia Fish Market), I continue to face immense challenges in rebuilding my building and resuming business due to unnecessary permitting obstacles and delays.
The Need for Nonconforming Use Protections in the Rebuilding Process
Front Street was the heart of Lahaina’s economy filled with local small businesses. The devastation caused by the August 8, 2023, wildfires destroyed these properties, and while many landowners are ready to rebuild, the current nonconforming use regulations threaten to impede the recovery process.
Under existing laws, commercial structures that do not conform to updated zoning codes may face barriers to rebuilding, causing further financial distress for property owners who continue to pay mortgages, property taxes, and insurance on land that remains unusable. Without clear protections and exemptions for nonconforming uses, property owners risk being unable to restore their businesses as before the disaster. Economic loss over time threatens owners from rebuilding and the historic town of Lahaina being restored.
IRS Tax Code 1033: A Critical Three-Year Deadline
A crucial concern for landowners is the IRS Tax Code 1033, which mandates that disaster-affected properties must be reinvested in within three years of the wildfire (by August 8, 2026) to avoid severe tax penalties on insurance proceeds and other financial compensation. We are just about half way through the 3 years. If nonconforming use restrictions continue to delay or prevent rebuilding, landowners face additional financial hardship, potentially making reconstruction financially unfeasible.
To ensure Lahaina’s economic recovery and preservation, Bill 105 must include explicit language allowing commercial property owners in the burn zone to rebuild their businesses with the same pre-fire uses, even if they do not conform to current zoning laws.
Requested Amendments to Bill 105 (2024)
To facilitate the timely restoration of Lahaina’s business district, I strongly urge the committee to add language that:
Explicitly allows the reestablishment of nonconforming commercial uses in Lahaina’s burn zone, ensuring property owners can rebuild as their properties existed prior to August 8, 2023.
Waives or streamlines Special Management Area (SMA) permit requirements for rebuilding commercial properties in the burn zone, reducing unnecessary delays.
Extends the timeframe for reestablishing nonconforming uses to align with IRS Tax Code 1033, ensuring landowners have sufficient time to reinvest and restore their properties before facing tax penalties.
Conclusion
The ability to rebuild quickly and maintain Lahaina’s commercial integrity is critical to the recovery of both the local economy and the community. The inclusion of nonconforming use protections in Bill 105 will remove unnecessary roadblocks and allow businesses to return, jobs to be restored, and Lahaina to be rebuilt in a way that honors its history, culture and legacy.
I strongly urge this committee to amend Bill 105 (2024) to include clear protections for nonconforming commercial uses in Lahaina’s burn zone and to take action that supports local landowners, small business owners, and the economic future of Maui.
Thank you for your time and consideration.
Sincerely,
Alison Pearce
Commercial Landowner, 632 Front Street
TESTIMONY IN SUPPORT OF BILL 105 (2024) – AMENDING SECTION 19.500.110, MAUI COUNTY CODE, REGARDING NONCONFORMITIES
Submitted by: Robin Kean
Commercial Landowner, 632 Front Street (Former Paia Fish Market) & Additional Properties
Hearing Date: Wednesday, February 5, 2025 – 1:30 p.m.
Committee on Disaster Recovery, International Affairs, and Planning (DRIP)
Committee Chair: Tamara Paltin
Committee Vice-Chair: Nohelani U‘u-Hodgins
Voting Members: Tom Cook, Gabe Johnson, Tasha Kama, Alice L. Lee, Keani N.W. Rawlins-Fernandez, Shane M. Sinenci, Yuki Lei K. Sugimura
Dear Chair Paltin, Vice-Chair U‘u-Hodgins, and Members of the Committee,
My name is Robin Kean, and I am submitting this testimony in strong support of Bill 105 (2024), specifically advocating for the inclusion of nonconforming use language to ensure the expedited rebuilding of commercial properties in Lahaina’s burn zone. As a commercial landowner of multiple properties on Front Street, including 632 Front Street (the former Paia Fish Market), I continue to face immense challenges in restoring my properties due to unnecessary permitting obstacles and delays.
The Need for Nonconforming Use Protections in the Rebuilding Process
Front Street was the heart of Lahaina’s economy, home to small businesses, local restaurants, and cultural landmarks that drew residents and visitors alike. The devastation caused by the August 8, 2023, wildfires destroyed these properties, and while many landowners are eager to rebuild, the current nonconforming use regulations threaten to impede the recovery process.
Under existing laws, commercial structures that do not conform to updated zoning codes may face barriers to rebuilding, causing further financial distress for property owners who continue to pay mortgages, property taxes, and insurance on land that remains unusable. Without clear protections and exemptions for nonconforming uses, property owners risk being unable to restore their businesses as they existed before the disaster, resulting in economic displacement and loss of Lahaina’s historic character.
IRS Tax Code 1033: A Critical Three-Year Deadline
A crucial concern for landowners is the IRS Tax Code 1033, which mandates that disaster-affected properties must be reinvested in within three years of the wildfire (by August 8, 2026) to avoid severe tax penalties on insurance proceeds and other financial compensation. If nonconforming use restrictions delay or prevent rebuilding, landowners face additional financial hardship, potentially making reconstruction financially unfeasible.
To ensure Lahaina’s economic recovery and preservation, Bill 105 must include explicit language allowing commercial property owners in the burn zone to rebuild their businesses with the same pre-fire uses, even if they do not conform to current zoning laws.
Requested Amendments to Bill 105 (2024)
To facilitate the timely restoration of Lahaina’s business district, I strongly urge the committee to add language that:
Explicitly allows the reestablishment of nonconforming commercial uses in Lahaina’s burn zone, ensuring property owners can rebuild as their properties existed prior to August 8, 2023.
Waives or streamlines Special Management Area (SMA) permit requirements for rebuilding commercial properties in the burn zone, reducing unnecessary delays.
Extends the timeframe for reestablishing nonconforming uses to align with IRS Tax Code 1033, ensuring landowners have sufficient time to reinvest and restore their properties before facing significant tax penalties which will keep majority from rebuilding.
Conclusion
The ability to rebuild quickly and maintain Lahaina’s commercial integrity is critical to the recovery of both the local economy and the community. The inclusion of nonconforming use protections in Bill 105 will remove unnecessary roadblocks and allow businesses to return, jobs to be restored, and Lahaina to be rebuilt in a way that honors its history and legacy.
I strongly urge this committee to amend Bill 105 (2024) to include clear protections for nonconforming commercial uses in Lahaina’s burn zone and to take action that supports local landowners, small business owners, and the economic future of Maui.
Thank you for your time and consideration.
Sincerely,
Robin Kean
Commercial Landowner, 632 Front Street
Please pass this now!!! Despearately needed. We want our town back. - Lori Fisher, resident