LIHU‘E — Controversy surrounding the permits for the reimagining of the Coco Palms Resort granted in 2015 has persisted throughout the years. Yesterday was no different.
While concerns for traffic, climate change and shoreline setbacks were brought up in regards to the Coco Palms property during Tuesday’s Planning Commission meeting, there was little commissioners could do as representatives gave their annual status update on the demolition and progress of the ill-fated resort.
Since what was on the agenda Tuesday was just an update, the body was backed into a corner, and ultimately unanimously accepted the yearly progress report for the site that is currently still in foreclosure proceedings.
Planning Commissioners were inundated with 80 pieces of written testimony, many calling to revoke permits for the Coco Palms property. For the commission to make decisions regarding the actual permits or conditions granted six years ago, the body would need to opt for a future agenda date.
While Honolulu-based Coco Palms Hui, LLC, still technically owns the title to the lot, Leif Erickson of Private Capital Group explained that ownership is currently in flux.
PCG represents lenders Stillwater Equity Partners, which made the original loan to Coco Palms Hui in 2016. Erickson, who is working on the project during the transition of ownership during the foreclosure process, said that once the foreclosure process is wrapped, PCG will transfer the ownership to a new entity.
In July, the property sold for about $22 million in a single-bid public auction.
The auction was prompted by the June 2019 foreclosure proceeding of Coco Palms Hui, which formed and initiated the latest attempts to revitalize the property. In March 2019, Stillwater Equity Partners took over the property after the hui defaulted on more than $11 million in financing on a $22-million mortgage.
The owners of Coco Palms Hui, Erikson said, have had no participation with the property for several years, and are not currently involved. In the years since PCG took over, ongoing maintenance of property clearing and demolition has continued, as well as work toward completion of permit applications. Affordable-housing conditions have been made clear to potential buyers, Erikson said.
Ron Agor, an architect on the project, said that within the next 30 days, the group anticipates having final approval on the remaining seven permits left to complete for the 350-unit hotel.
According to the Coco Palms permit conditions matrix, submitted to the county, as of June 30, eight of the 29 conditions placed on redevelopment of the property have been completed, including a $50,000 historic-preservation contribution and review of waste-management plans.
During the meeting, commission Vice Chair Helen Cox raised concerns for climate change and shoreline setbacks, while Commissioner Gerald Ako expressed worry about traffic conditions.
Rick Cooper, who spoke during public testimony, requested that commissioners “step up for the people of Kaua‘i” in rejecting the redevelopment plans and instead opt for what many community members are requesting: a community center.
Commission Chair Donna Apisa, during the meeting, said she’d be interested in hearing community proposals, but they must be “practical solutions” before she could fully support them.
The resort, which opened in 1953, never recovered after its destruction by Hurricane ‘Iniki in 1992. Several attempts to restore the iconic property since then failed. Back in 2015, it was Coco Palms Hui projected the property would reopen by spring 2017.
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Sabrina Bodon, editor, can be reached at 245-0441 or sbodon@thegardenisland.com.
