WAILUA — From the tops of the protective dust screens installed around the perimeter of the former Coco Palms Resort, the only things that can be seen are the tops of excavators and cranes moving against a skyline of concrete skeletons of dilapidated buildings.
Reef Capital Partners, which acquired the Coco Palms following the previous owner defaulting on its loan, announced the start of the removal of the dilapidated hotel structures as part of the restoration of Coco Palms following more than three decades of inaction by prior owners. The initial movement toward this end came on March 11 when excavators started working on the Shell building.
Reef Capital Partners is targeting a completion date in 2026 for the restoration.
“The community has waited for more than 30 years for these structures to be removed, and we are grateful for the support we’ve received to reach this important milestone,” said Jon Day, the Chief Financial Officer of Reef Capital.
“We are deeply committed to being responsible stewards of this historic landmark. As new owners, we hope that fulfilling the promise of removing these structures following decades of past failure is a clear demonstration of our commitment.”
The restored resort, according to Reef Capital plans, will be smaller than the original hotel with 350 rooms compared with more than 400 rooms previously.
The restoration plans will include the restoration of the historic Lotus, Flame, and Seashell restaurants, recreational amenities, a cultural center for the community, a lo‘i kalo or traditional Native Hawaiian taro farm and a spa. The restored resort is intended to again become a gathering place for the Kaua‘i community.
Archaeological and cultural monitoring will be ongoing during construction and renovation.
Additionally, Coco Palms has convened a cultural advisory committee composed of respected members of the local Native Hawaiian community to help guide restoration of the site and ensure authenticity for guests.
The Coco Palms restoration is anticipated to generate more than 300 full-time jobs during the construction phase, and more than 400 permanent full-time jobs for local residents once resort operations start.
All approvals needed to complete the demolition, construction and restoration of the historic Coco Palms have been obtained, and construction on some of the buildings on the site has started.
Reef Capital has already invested tens of millions of dollars in the restoration, and more than $400 million in direct investments will be made as part of the restoration project.
Millions more are expected to be generated within the Kaua‘i community thanks to workforce spending, and once operational, the resort is expected to generate millions of dollars annually within the local economy, and provide substantial tax revenues for the county through real property and transient accommodations taxes.
The Coco Palms Resort was a victim of Hurricane Iniki that swept through Kaua‘i in 1992.
In 2022, Reef Capital took over ownership of Coco Palms after the previous developer defaulted on its loan. Reef Capital, building a reputation across the country for its responsible development practices and focus on quality, has both the financial strength and unwavering commitment to responsibly restore Coco Palms following 30 years of failed efforts by prior owners.
•••
Dennis Fujimoto, staff writer and photographer, can be reached at 808-245-0453 or dfujimoto@thegardenisland.com.
