Hi everyone, on the last post I briefly touched upon using your home as the location of your business. Today’s post will focus on zoning and all the complexities that brings to setting up your business.
Similar, to how neighborhood associations or condo groups want a certain look, so they enforce covenants against members the government also wants to shape and control how the land is used. This is accomplished through zoning laws.
All land in Hawaii (except for federal land) is one of four categories: (1) conservation; (2) agricultural; (3) rural; and (4) urban). The four designation were created by the State Land Use Commission. The Zoning Code lists what are the permitted uses within each zone. It also lists the required setbacks, height limits, parking areas for commercial developments, and other such types of requirements.
Every zone has a list of what is a “permitted” use without need of further approvals. It’s the reason you see gas stations and strip malls where you do, and away from your houses.
In general, when looking at a location you want to make sure your business will be able to meet the requirements. If you are set-up shop in one area and violate the zoning requirements it could be very costly and be so severe as to drive you out of business. In addition to the land use, construction of buildings need plan approvals from the Planning Department as well as the building itself needs a building permit, which ensures that the building is for the permitted use and has proper set backs.
In some occasions you can get a variance to allow for some type of use not allowed in the zone, such as the shape of the lot allows you a different setback. It is also possible to get a Land Use Approval for others kinds of use. However, in general to get a variance or Land Use Approval it can be a long process.
For more information on the matter (for Oahu) visit the City and County of Honolulu’s Department of Planning and Permitting page. In addition, when dealing with zoning laws it is best to seek an attorney and other land use professionals to help best explain the complex system.
Licensing and Permitting
Before I end out this Draw the Law, I’d like to make brief mention with licensing and permitting, which dovetails nicely with zoning. I already made mention of building permits above, but suppose you say you start your business and you have structures you want to alter or demolish. You will need a building permit for such actions. There is even a sign permit if you want to install, construct, alter or move any sign on the property!
Certain businesses also require a license to be operational for business. The best example of this is the liquor license. A bar cannot operate even though it meets all the other zoning requirement without a liquor license. For example, let’s say it is the right-sized building for bar operation on a lot in Waikiki or Downtown that allows bars, but the owner fails to obtain the proper liquor license to sell drinks. He would not be able to open his bar and sell drinks until he gets approval from the Liquor Commission via a license.
Therefore, the need of having all your ducks lined up when opening certain businesses is paramount. It takes a lot of time, paperwork, review, and discussion with the government.
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See you on the next Draw the Law!
*Disclaimer: This post discusses general legal issues, but does not constitute legal advice in any respect. No reader should act or refrain from acting based on information contained herein without seeking the advice of counsel in the relevant jurisdiction. Ryan K. Hew, Attorney At Law, LLLC expressly disclaims all liability in respect to any actions taken or not taken based on the contents of this post.