A local fisherman complained to the state when a hotel employee told him he couldn’t throw net in the lagoon fronting the Kahala hotel.

Other beachgoers complained to the neighborhood board, when they were asked to leave the area since they weren't hotel guests.

That prompted the state to take a closer look.

It found what could be a more serious problem.

A wedding gazebo may in fact be on state land.

But the state gets no cut from Kahala wedding packages that range from $3,000 to more than $7,000.

On top of that, the state says a raft in the lagoon is illegally moored.

And there are other questions about a yoga pavillion, and a nearby pool concession, and  beach chairs that are set on the shoreline.

Three years ago, the neighborhood board first took residents’ complaints to City Councilman Stanley Chang.

 "The key is it's really both a county and state issue because the state controls the water line and from there it is the city so you get some jurisdictional issues," said Waialae-Kahala Board member Scotty Anderson.