LIHU‘E — The Kaua‘i County Council on Wednesday unanimously passed a resolution supporting the Hawaiian Islands Land Trust’s efforts to secure a state grant to set in motion a planning process to acquire the Coco Palms Resort for the public
LIHU‘E — The Kaua‘i County Council on Wednesday unanimously passed a resolution supporting the Hawaiian Islands Land Trust’s efforts to secure a state grant to set in motion a planning process to acquire the Coco Palms Resort for the public benefit.
The decaying hotel fronting Wailua Beach has been closed since Hurricane ‘Iniki in 1992, and sits in an area rich in archaeological and cultural sites, which was once the home of Queen Deborah Kapule.
“For over 20 years, the private sector has had the opportunity and time to restore the Coco Palms,” said Jennifer Luck, Kaua‘i Island Director of HILT. “For over 20 years, residents and visitors have watched the continued degradation of this once sacred area.”
In January, HILT requested with the state Legislature a $276,650 capital improvement project grant-in-aid through Senate Vice President Ron Kouchi’s office, according to Luck.
If the request goes through — and provided the governor releases the funds — the grant would allow HILT to start a process to find out the community’s vision for the site and execute it through carefully planning. If the amount approved falls short for the planning stage, Luck said HILT could easily match the grant through fundraising efforts.
Ultimately, the process would lead to fundraising and/or partnering efforts that would secure between $15 million and $20 million to acquire the property for the public benefit.
“We believe if given the opportunity, the community will create an inspired vision that will honor the important role in Kaua‘i’s … and Hawai‘i’s history of the site,” Luck said.
Luck said the trust believes that purchasing the property for public benefit, creating a place that incorporates open space, cultural traditions and a community vision “is the only viable means of truly rehabilitating the property.”
But the trust has no plans to bring Coco Palms back to its former glory as a hotel, as many who used to work at the iconic property, including musician Larry Rivera, have long wished for.
Insurance records show the property’s damages during ‘Iniki weren’t so severe, and rebuilding was feasible.
But years of inaction, and a fire that incurred further damage, caused the hotel to go from one of Kaua‘i’s most iconic features to the island’s most visible eyesore — Wailua Beach is Kaua‘i’s busiest corridor, with thousands of residents and visitors traveling through it daily.
After many permit extensions, current property owners Coco Palms LLC let their permits expire Jan. 25. Since then, the owners have reconsidered and asked the Kaua‘i Planning Commission to extend the permits, and the issue is now going to a contested hearing.
If state lawmakers approve the funds, Gov. Neil Abercrombie would still have to sign on it and then release the money, which could take several months, according to Luck. In the meantime, and even later during planning and fundraising efforts, there is always the risk that the property could be sold to someone else, she said.
County records show the property was acquired by Coco Palms LLC in 2006 for $12.6 million, and county Real Property Division staff said the property is worth about $13 million in today’s market.
Council Chair Jay Furfaro said the demolition of the hotel would cost about $4 million.
Another $13 million spent in marketing would be a loss for the current owners if the county acquires the property, because legally the county cannot pay more than a property’s appraised value, Furfaro said.
The resolution encourages the Legislature to approve the funds, and requests residents and visitors to join the council in support of HILT plans.
Luck expects fundraising efforts to reach out to government and private investors, to ultimately secure the property for the public benefit rather than private profit.
Copies of the resolution were sent to several parties, including Abercrombie, Mayor Bernard Carvalho jr., all members of state House and Senate, county Planning Director Michael Dahilig, the Office of Hawaiian Affairs and the state Department of Health.
Visit www.hilt.org or contact Luck at jennifer@hilt.org or 755-5707 for more information.
• Léo Azambuja, staff writer, can be reached at 245-0452 or lazambuja@ thegardenisland.com.
