The Kauai County Planning Department and developers of the Coco Palms Resort have agreed on some changes tied to redevelopment permits to ensure the iconic hotel is rebuilt.
Satisfied by the agreement between the Planning Department and Coco Palms Hui LLC, the County Planning Commission voted unanimously, 5-0, Tuesday to dismiss the planning director’s previous request to issue a show-cause order and hold a contested hearing. The move was prompted by concerns raised earlier this year about the lack of progress of the redevelopment project due, in part, to delays in demolition work.
The dismissal comes after the Planning Department and developers reached an agreement to amend some conditions of the redevelopment permits. One condition pushes back the demolition completion date to March 31, 2017. The developer is also required to submit an annual progress report to the Planning Commission.
“We believe the developers are moving forward in good faith,” said county Planning Director Michael Dahilig. “We’re optimistic that there’s forward progress but there’s still a long way to go.”
Prior to the latest changes to permit conditions, the deadline to complete demolition work was April 13. Coco Palms Hui missed the deadline as it was in the process of securing financing before proceeding with demolition work.
The developer acquired the property in May from Prudential Insurance’s PR II LLC with a $23 million loan from Private Capital Group of Alpine, Utah.
Demolition work began in mid-June and is approximately 75 percent
complete, according to Tyler Greene, managing partner of Coco Palms Hui. “We are picking up momentum and picking up speed.”
Greene said demolition is expected to be completed in December and construction is due to begin in January. “We’re excited and encouraged and very motivated to get Coco Palms across the finish line,” said Greene during a phone interview with the Honolulu Star-Advertiser.
So far, the Queen’s Audience Hall, Queen Lagoon building and Lotus Restaurant have been gutted. Cottages on the mauka side of the property have been torn down. “Everything has been going smoothly and great,” Greene said at Tuesday’s commission meeting.
Also during the meeting, Greene extended an invitation to commissioners to visit the property to see the progress.
The redeveloped Coco Palms is slated to reflect the original character of the hotel created by the late Grace Guslander, who owned the property with her husband, Gus.
Architect Ron Agor of Agor Architects LLC is working with the developer on the design.
Eleven buildings — comprising 22 cottages or master suites — will be elevated 8 feet above sea level to meet federal requirements to prevent flooding. Each cottage is slated to be 800 square feet.
Greene said the resort’s three main buildings, Alii Kai I, Alii Kai II and Shell, will house 80 percent of the guest rooms. Of the 350 guest rooms at Coco Palms, 277 rooms will be standard guest rooms, each approximately 400 square feet.
The remaining guest rooms will be the cottages as well as the junior suites, each 650 square feet.
A shuttle will be available to hotel patrons and the public to travel from Coco Palms to Lydgate and Wailua beach parks, Seashell Restaurant, Coconut Marketplace and other sites within the main Kapaa corridor.
The developers will also construct a comfort station for beachgoers. Restrooms and showers will be located next to or in proximity to the public parking area. In addition, the developers will widen Apana Road from Coco Palms to Haleilio Road to accommodate two-way travel for vehicles.
Greene said the hotel, to be managed by the Hyatt, is targeted to reopen in mid-2018. Work is underway on the second round of funding for the project. The estimated redevelopment cost is $135 million.
Coco Palms, which opened in January 1953, became widely known after the wedding scene of the 1961 Elvis Presley movie “Blue Hawaii” was filmed there.
The hotel was heavily damaged when Hurricane Iniki struck Kauai in 1992, forcing Coco Palms to close. Attempts by previous developers to rebuild the hotel have failed, due, in part, to funding snags.
