Despite receiving more than 5,600 signed petitions favoring Bill 16, a Honolulu City Council committee Tuesday deferred the measure, which establishes permitting and notification requirements for hotel owners that want to convert rooms into condominiums or time shares.
The bill, which was introduced by Council members Ron Menor, Joey Manahan and Stanley Chang, easily passed first reading March 12 with a vote of 9-0. The measure seeks to preserve hotel jobs by requiring property owners to obtain a permit if they plan to convert 20 percent or more of their hotel rooms. It also requires notifying employees, who would have to be retained for 90 days, and in the case of layoffs, be put on a preferential rehire list.
Unite Here Local 5, which represents about 8,100 hotel workers in Hawaii, is spearheading the rule change in the wake of an industry trend that over the past decade was partially responsible for the loss of 8,000 hotel units statewide, including 5,000 units in Waikiki.
"Fewer traditional hotel rooms means fewer good jobs," said Eric Gill, Local 5’s financial secretary-treasurer. "Good jobs here mean money spent here and taxes paid here — a better life here."
Gill said he was disappointed that the committee did not move the bill.
"It’s unclear how deferring this will result in the broader discussion that everyone seems to want to have," he said. "We’ll regroup and take another crack at it and hope that the committee does what it says it will."
Members of the City Council’s Public Safety and Economic Development Committee said Local 5 and members of the Aikea Movement, a union-organized community mobilization effort to preserve jobs, made strong arguments. However, they wanted more information from city departments such as Planning and Permitting, Budget and Fiscal Services, and Corporation Counsel. They also wanted more information from opponents of the bill.
Commercial real estate and lodging veterans in the community have publicly criticized the bill, which they say could cost jobs by making redevelopment more challenging. They’ve also said the bill would not stem room reductions brought on by the trend of combining smaller hotel rooms to make larger units. However, only Gary Slovin of Wyndham Vacation Ownership spoke against the bill during committee.
"We have to renew our inventory and create properties that tourists want to visit," Slovin said. "We can’t afford to send a message to people outside of Hawaii that we don’t welcome their investment. Time-share investment is creating vibrancy and renewing properties that would otherwise be derelict."
Local 5 estimates about 570 union jobs were lost as conversion took place at the former Ohana Hobron, the former Ohana Surf Hotel, the former Ohana Ala Wai Tower, the former Ohana Islander, the former Aston Parkside, the former Waikiki Terrace, the former Ohana Reef Towers, the former Royal Garden at Waikiki, the Aqua Bamboo, the Ala Moana Hotel, the Makaha Resort and the Miramar at Waikiki.
Councilman Breene Harimoto said he "sympathizes with hotel workers who have lost jobs"; however, deferral is the best action until issues like whether the bill is legal or the city has jurisdiction are addressed. It’s still not clear which city department would administer the permits and how the notification process, which some Council members say should be dealt with in labor negotiations, would work.
Chang said he is not discouraged by the deferment and thinks Council members could get their questions answered by the next monthly committee meeting.
"For legislation of this magnitude, it’s fairly typical to see longer deliberations than the two-month, three-hearing process that usually takes place," he said.
