We need jobs and we need them right now. We must rebuild our economy quickly. This requires new thinking and a fresh, dynamic approach to county government.
The latest national and international reports on jobs, unemployment, housing starts, and sovereign debt all indicate that we are in a slow-motion economic train wreck. Major Federal tax hikes starting in January, combined with a stifling new federal regulatory environment, are throwing more cold water on a struggling economic recovery. The threat of a double-dip recession is looming.
But there is good news. We citizens of Maui County have the means to overcome this challenge. It takes courage and teamwork. But we can do it.
Maui County must facilitate rather than retard economic activity. This means faster building permits and faster project approvals. But it also means taking a proactive approach to boosting diverse economic growth. And that requires a new approach to zoning enforcement.
About 80% of new job creation is attributed to small business. It makes sense to encourage small business. With a dearth of commercial and light industrial space available at affordable prices for small shops and start-ups, the clear choice is to boost appropriate home-based business as a small business incubator and economic pump-primer.
Maui County zoning tightly limits home-based business. This is an intentional planning outcome from the days when business was centralized and could be entirely separated from residential communities. But this artificial separation is not the way Maui was many years ago, and it’s no longer a valid economic model in today’s world of capital, labor and information flows.
Maui County’s ability to allow home-based business is restricted by the underlying state zoning layer. And the state is slow and difficult to change. What can Maui’s Mayor do to boost home-based business while still complying with state requirements and county code?
One step is to amend Maui County code to allow greater flexiblity. But the code change process is very slow and still does not address the underlying problem of state zoning strictures. What to do?
Mayor Arakawa’s approach from 2002 to 2006 was to ignore the law and turn a blind eye to home business (e.g. Temporary Vacation Rentals). Practical and effective in the short term, but this policy made home businesses into hostages of the Mayor’s office (as Mayor Tavares has amply demonstrated since then). Arakawa’s blind-eye approach also raised legitmate concerns about the corrosive effect of the County’s wilful noncompliance with its own code. Mayor Tavares’ approach was letter-of-the-law correct, but it cost us many jobs and businesses at a very bad time.
Neither of these approaches works. But there is a third way.
My team and I propose an administrative enforcement strategy which allows home business to flourish while protecting neighborhoods from unwanted impacts, and which keeps the county on the right side of state law and its own code. This strategy takes advantage of the fact that for most lands in question, the state has no practical means to enforce its own rules and relies largely on the county for zoning and land-use enforcement as they relate to most home business.
The strategy hinges on regulating home business based on measureable impacts instead of permissible activities. Instead of developing and trying to enforce a laundry list of home business types that may be permissible, Maui County can, in effect, simply allow as a result of its enforcement strategy any home business as long as the business is not criminal and does not generate any of a number of undesirable impacts; e.g. excessive noise, parking, traffic, pollution.
Scenario: County inspector conducts routine check of home business. If measureable impacts in excess of standards cannot be observed/recorded from the public street or adjoining complainant’s property, the case is closed.
Result: County meets its obligation to its own code and state law, the neighborhood is not overly impacted, the business continues, and the resulting jobs and economic growth benefit the community and Maui County.
Randomized, proactive measureable-impact-based regulation also has the advantage of being easier and cheaper to enforce, and harder to corrupt. Most importantly, it will allow home business to flourish while protecting our communities from impacts and providing compliance with the justifiable thrust of state and county law.
Cities and counties across the nation are struggling to reinvent themselves in time to survive. Maui County can lead the way with positive solutions such as this.