Following four hours of emotional testimony, the Honolulu City Council last night voted 6-1 to give preliminary approval to a bill that eventually would legalize bed-and-breakfast operations on O'ahu.

After concluding that the legislation "is not a perfect bill," the council cautiously moved the measure that could lift a prohibition on issuing licenses on B&Bs to the zoning committee to allow additional public debate.

"It is clear the status quo is not working," said council member Charles Djou, who suggested an amendment to the bill that would form a Vacation Rental Board dedicated to licensing and regulating B&B and transient vacation unit regulations.

"The situation we have regarding bed-and-breakfast and transient vacation units is unsatisfactory," he said.

If passed, the legislation would overhaul the city ordinance on short-term rentals passed in 1989, which banned the establishment of new bed and breakfasts.

Currently, there are fewer than 100 bed and breakfasts operating under nonconforming use permits, in which owners take in renters for less than 30 days. About 1,000 owners have permits to rent an empty home for less than 30 days, the city has said.

Council member Nestor Garcia said he will travel to Maui today to discuss both sides of the issue with residents there, and to learn more about that community's plan to put caps on the number of B&Bs and vacation rentals allowed on the island.

Although Bill 6 is an attempt to address the problem, Djou said it doesn't explain how rules regulating B&B and TVUs in residential areas would be enforced. He said if last night's vote were the final vote, he would have voted against it.

"But I am voting in favor of it on second reading to allow discussion to continue," he said.

Still, the council heard plenty of discussion about the contentious issue yesterday from dozens of speakers who packed the council chambers — particularly residents of Kailua, where the issue has been especially controversial. The majority of those who testified spoke forcefully against the bill.

Speaker after speaker stepped to the microphone to say legalizing B&B and TVU rentals would destroy the integrity of O'ahu's communities, turn them into tourist hotel centers, increase homelessness, and even expose neighborhood children to foreign transient sexual predators who aren't required to register as sex offenders.

OPPOSING VIEWS

While opponents — who were represented by blue banners and signs saying "No B&Bs and TVUs" — were the most vocal, a large contingent of Bill 6 advocates bearing bright yellow "Support B&Bs and TVUs" signs was also at the meeting.

Kathy Bryant, who is with a group called Keep it Kailua, said the controversy has been portrayed at council meetings as more or less equally split between those who favor Bill 6 and those who are against it. But she said when the council members go through the testimony presented to them they would find out otherwise.

"I think what you're going to find is that the vast majority of our island residents oppose this," said Bryant. "It is not supported by the majority. The folks that you have here today (with yellow signs) are the folks who are going to benefit financially from Bill 6.

Bryant said community associations and organizations, neighborhood boards, hotel and longshore unions, as well 1,600 petition signers do not support Bill 6. Even the city's own Planning Commission unanimously opposed Bill 6, she said.

"All of these people are telling you that ... this is not a good bill," said Bryant.

Connie Mitchell, executive director of the Institute for Human Services, which operates two homeless shelters on O'ahu, said B&Bs and TVUs cause additional homelessness by decreasing the already depleting number of available homes on O'ahu.

"This bill opens the door to property owners to consider turning long-term rentable units into higher income-producing bed and breakfasts that owners are more likely to rent to visitors rather than residents," said Mitchell. "People are already doubling up more than ever to make living in Hawai'i more affordable."

Angie Larson, president of the Hawai'i Vacation Rental Owners Association, told the council that similar dire predictions were made two decades ago regarding the issue of B&Bs. She cited a political cartoon depicting a B&B transforming into a hotel. She also spoke about letters written in 1989 that predicted that TVUs would drastically alter Kailua's community makeup and transform it into a tourist mecca.

"The fact is none of these predictions or fears came true," said Larson.

"The way the council dealt with the issue in 1989 was to put a Band-Aid on it. The Band-Aid did not hold. The fact is that bed-and-breakfast homes are here to stay."

Larson said a better solution would be to regulate B&Bs instead of wasting taxpayer money on a futile attempt to hunt down violators.

"It is time to leave the discrimination, the unrealistic fears and the unsubstantiated predictions behind," she said. "Let's take this opportunity to go forward. ... Let us meet the challenge together. Let's resolve this issue once and for all. Remove the ban against bed-and-breakfast homes and put into place a system of reasonable rules and regulations. It comes down to fairness."