Beach services operator in Waikiki to contest $62,000 fine

The owner of a Waikiki company that rents chairs, umbrellas, surfboards and other beach gear plans to contest a $62,000 fine levied Friday by the Board of Land and Natural Resources for conducting unauthorized commercial activities and encroaching on state lands at Duke Kahana­moku Beach.

The Department of Land and Natural Resource’s Land Division received complaints in March that Chris Sanger and Duke’s Lagoon LLC, which has a shop at the adjacent Ilikai Tower, were presetting chairs and umbrellas on the beach before guests arrived.

Conservation enforcement officers made early morning visits to the beach March 29 and 30 and saw Sanger digging in the sand around 7 a.m. to set up umbrellas, according to a Land Division report submitted to the BLNR. Officers said most, if not all, of the customers showed up an hour or two later.

On a return visit April 9, the officers noted as many as 18 unoccupied beach chairs on the beach. They told Sanger the presetting of chairs and umbrellas on the state beach was a violation and that he had to remove the items immediately and faced possible fines, the report said.

On April 14 a cease and desist notice was issued to Sanger, but officials said the activities continued up until this week.

The Hilton Hawaiian Village has a 15-year concession agreement to pay the state $55,000 a month for the exclusive right to provide commercial beach services at Duke Kahanamoku Beach, including rental of beach chairs and umbrellas. The agreement prohibits the presetting of beach chairs and umbrellas before customers have rented them and requires they be removed when no longer in use.

Speaking on behalf of the resort, Duane Fisher reminded BLNR members that Sanger had received repeated warnings about illegal activities on the beach.

“Such conduct should not be tolerated and should be discouraged by imposing fines. If Mr. Sanger is not fined, we fear other persons will be emboldened to flout the law and engage in unpermitted commercial activities on the beach,” Fisher said. “Our beaches truly are a treasured natural resource and regulating and limiting commercial activity on the beach is sensible policy. It’s not difficult to envision the chaos that would ensue if aspiring entrepreneurs were allowed to pursue commercial activities on the beach in complete disregard for the law.”

Sanger and his attorney, Shanlyn Park, denied any commercial activity was occurring on the beach, explaining that all customer transactions take place at his shop or via his website. He told board members that he simply sets up chairs and umbrellas that have already been rented so that they are ready for customers by 8 a.m.

Park argued that state rules don’t provide a clear definition of “presetting” and that the term is “broad, vague and ambiguous” and seems to be “morphed or created as the situation occurs.”

Sanger also denied leaving the items on the beach all day, saying they are removed when no longer in use. And since receiving the cease and desist notice, he said he has been waiting until guests arrive before setting up. Sanger also said surf lessons are conducted at his shop, although he accompanies customers to the beach afterward.

“This is a case where they don’t want anybody down there but the Hilton. I feel like I’m the small guy, like David and Goliath,” he told the board, calling the proposed fine “outrageous.”

Land Division Administrator Russell Tsuji had little patience for Sanger, noting the business owner had been given ample warning about violations at Duke Kahana­moku Beach, dating back to 2019. Since Sanger’s activities continued up until Tuesday, according to Tsuji, he advocated for additional daily fines that would have pushed the total penalty to $170,000.

Sanger got little sympathy from BLNR members, although they voted to stick with the initial proposed fine of $62,000.

“The bottom line issue is we don’t want people to cop space on the beach when they’re not there. That’s why we have these laws,” said DLNR Chairwoman Suzanne Case.

Park indicated she would be requesting a contested case hearing on the matter.