The board of the Department of Land and Natural Resources on Friday deferred making a decision on whether to issue a new revocable permit to the Kahala Hotel and Resort’s owner, prolonging a long-running controversy over how the facility is using a state-owned stretch of beachfront property and whether public access has been impaired.
After more than five hours of public testimony and discussion, the board decided to allow an existing permit to continue until the end of the year while the department awaits a written request for a contested-case hearing, an administrative proceeding in which testimony and evidence are presented.
Attorney David Kimo Frankel told the board that he intends to put his request in writing.
The dispute over a roughly 1-acre parcel adjacent to the beach stems from how the current hotel owner, Resorttrust Hawaii LLC, and previous owners have used it under a revocable permit, which is supposed to be a month-to-month, temporary land-use agreement.
The permit has been renewed annually for the past 50 years and restricts use to recreation and maintenance. But over that half a century, the parcel use has included a variety of hotel-related commercial activities, including cabana rentals, wedding ceremonies and open-air restaurant seating.
Critics say the commercial use violates the permit terms and has interfered with public access to the property and the adjacent beach. On top of that, they added, the hotel pays a dirt-cheap rent.
“This is blatant commercialism,” said Kahala resident Tyler Ralston, who opposed granting the hotel a permit.
But supporters told the board the hotel’s current owner has been a good neighbor, keeps the property and adjacent beach in pristine condition and welcomes public use of the grounds.
“They really are inclusive and not exclusive,” Kahala resident Mike Chun said of the owner.
Hotel representatives told the board that violations dating back decades have been corrected, use of the property has been substantially scaled back, weddings no longer are held on the state land and signs indicating public access are more evident.
Gerald Glennon, the hotel general manager, said the hotel is seeking clarity on what is an allowed use under the permit.
“What we have now we would like to be legitimized,” he said.
The hotel also is willing to pay more in rent, he added.
The state currently charges about $15,000 annually for that prime beachfront land, which was created when the hotel was developed in the early 1960s.
Board member Chris Yuen acknowledged that the amount is “far, far too little.”
State Sen. Laura Thielen, who used to oversee DLNR, encouraged board members not to issue the revocable permit, but instead consider how the property should be used long term, especially given the ongoing effects of climate change and the expectation that more of Hawaii’s beachfront land will be lost.
“That conversation needs to be had,” Thielen said of the long-term outlook.
The staff recommendation to the board was to approve a new permit and to pursue an appraisal to determine the parcel’s value to set the rent.
But Frankel’s request for a contested-case hearing prompted the board to defer a decision until that expected challenge is sorted out.
