Bad advice from city stalls venture

After investing nearly $1.4 million to open a dune buggy rental shop on Oahu’s North Shore, Matt Brown was blindsided earlier this year when he found out Hawaii law won’t allow him to rent his gas-powered vehicles.

The Texas native, who moved to the islands in January with his wife, Heather, to open Aloha Buggies in Hale­iwa, had been told by a city official before he bought his fleet of dune buggies that he should have no trouble registering them on Oahu.

With that assurance Brown went forward with plans to purchase 36 low-speed vehicles, or LSVs, each costing about $15,000. But when he tried to register the first six of the buggies, the city told him he couldn’t do it.

"Many businesses come to Hawaii with high hopes. Unfortunately for us, that dream has turned into a nightmare," Brown said in an email to the Hono­lulu Star-Advertiser. "We have spent our life savings, are in a situation where we can’t pay rent, have had to sell almost every possession we own, all because no one seems to care or want to take accountability."

Brown received an email in August from city Motor Vehicle Control Inspector Byron Canha, who has since retired, stating, "You should not have any issues registering these."

However, after shipping a half-dozen buggies to Oahu, the Browns were told by the city Division of Motor Vehicles that they wouldn’t be able to register them because state law doesn’t allow gas-powered LSVs on public streets, though low-speed electric vehicles are acceptable.

"We moved to Oahu with the approval to operate our business and, in only a few short months, we have been suspended on all operations due to an error by a high-ranking DMV official," Brown said.

He said the manufacturer, Oreion Motors, had also received approval from the city on its own because it was interested in bringing a dealership to Hawaii. The Browns had agreed to become the exclusive dealer in the islands.

Sheri Kajiwara, director of the city Department of Customer Services, acknowledged in an email that a city inspector contacted by the couple misspoke regarding registration of the recreational vehicles.

"Earlier conversations with one of our MV inspectors, who is now retired, concentrated on the vehicle specifications. Considering that, he did indicate to the Browns that he didn’t feel the vehicles would be a problem," she said. "We truly regret any misstatements made by an employee that may not have been considering the larger picture at the time."

She went on to say that after the city inspected the LSVs, "it became clear that their vehicle type did not fall in any existing vehicle registration category."

"For that reason, the city’s DMV could not complete the registration of the vehicles," Kaji­wara said. "In the interest of public safety, the state Department of Transportation delineates the types of vehicles that the counties can register as safe to be driven on Hawaii roadways. LSVs are not included on that list. We realize the situation this put the Browns in, have met personally with them, and have been attempting to explore every option available."

Kajiwara said city attorneys have been asked to review legal interpretations of the current state statutes, adding, however, that "legal opinions take time."

Brown said he has contacted more than a dozen state and city officials, including Gov. David Ige and Hono­lulu Mayor Kirk Caldwell, but no one has been able to resolve the situation.

"All we can ever seem to get response-wise is to sue the city or contact the news, and these are recommendations from government employees," he added. "No one seems to want to take responsibility for a massive screw up."

The couple, who have been trying to launch the startup for six months, have spent more than $500,000 on the business and $100,000 in moving and living expenses, and committed to investing another $700,000 for additional buggies.

The Browns initially intended to rent the vehicles for off-roading use as well, but decided against that after realizing that would upset residents.

"We do not allow off-road driving/riding under any circumstance," the website AlohaBuggies.com says. "While we can appreciate the excitement that it offers, the risks to you, us, passengers and the vehicles is just too high. All rentals must stay on paved roads at all times as all rentals are equipped with GPS and are monitored by a live person."

Kajiwara suggested the Browns ask state lawmakers to change the law to allow them to register their vehicles.

"In that process … the registration of such vehicles would be issued with complete public confidence. The Department of Customer Services would support this move, in support of their business," Kaji­wara said.

That couldn’t be done until the next legislative session, which starts in January.

"It is important to understand this is the biggest example of several departments not knowing their own regulations and laws," Brown said. "The story is full of uneducated government employees being given the authority to make decisions they aren’t qualified to make. Such as, preventing us from registering our vehicles we had already been given prior approval to register."