Coco Palms Resort Hotel, Kauai, HI (Hotel)

Thanks for the follow-up, that's a nice carving, with some historical and personal value.

I looked up the developer again - GreeneWaters LLC - to see if they took down their pages about the Coco Palms project. Nope, their "Commercial" page still features the Coco Palms, although some of the very nice architectural renderings aren't there anymore. I believe I posted some of those earlier in this thread, so they would be preserved long-term here on Tiki Central.

This property is a tough one - lots of risks involved - and lots of controversy about burial grounds, other sacred land, undesirable tourism, and on and on. If someone does someday rescue and rebuild it, I'd definitely like to visit around the time it opens. I haven't been to this island yet. The Coco Palms would be a very nice place to spend a few nights.

Let's keep watching and waiting. Thanks for monitoring.

PS - the developers web site show a number of other nice projects on the islands. While the foreclosure hurts them financially, I'm guessing they have plenty of near-term cashflow to overcome this setback. But still, it sucks to spend millions and run into tons of roadblocks and then lose millions. I have heard that the Hawaiian islands are often tough for these sorts of projects unless you're already in an established tourism and development zone.

Years later we now know the sad story but we had hope. All hail Coco Palms!

A nice tabletop drink menu from the Coco Palms (recent estate sale find):

Just an update on tours - Sadly, they've been halted, at least for now. Bob had been told he could keep going until March 31, 2023, but was suddenly shut out by the contractor working on site. He's working on being allowed to resume, so contact him to see if it's possible while you're there.

https://www.facebook.com/groups/98320760038

https://www.facebook.com/bobkauai.jasper

http://www.cocopalmstour.biz/

Obviously we weren't able to do another walk though this time, looks about the same. Dust screen had been removed, but a new one was put back up while we were on the island.

Didn't see any newer articles posted regarding redevelopment, but it's pretty much Same Old, Same Old...

https://www.thegardenisland.com/2022/12/04/hawaii-news/kauai-coco-palms-development-faces-new-legal-challenge/

https://www.thegardenisland.com/2023/01/25/business/kauai-planning-commission-meeting-sparks-coco-palms-revelations/

There are a few more stories on TheGardenIsland.com (You can get a basic subscription, 10 stories a month, for free.)

[ Edited by bamalamalu on 2023-02-18 16:11:54 ]

Update - final tour is today.

Turns out Bob was able to squeeze a couple more tours in, but they're done now.

A lot of trees have been cleared, and fortunately Bill Collins got to take some for carving.

The owners say they're ready to start real work in a few weeks; we'll see how it goes...

Latest article (March 25, 2023)

https://www.thegardenisland.com/2023/03/25/hawaii-news/coco-palms-resort-to-be-rebuilt/

KAPA‘A – The latest developer of Kaua‘i’s infamous Coco Palms Resort is officially prepping for the site’s demolition and reconstruction, and he says people can expect the new resort to be completed in about three years.

The announcement from Reef Capital Partners, a Utah-based real estate investment firm, comes just months after residents protested against the resort’s construction and years after previous developers failed to see any of their efforts materialize.

Demolition and clearing of existing structures is expected to start around April 15 and will take about three to four months to complete, said Reef Capital Partner’s Managing Director Patrick Manning in an interview with The Garden Island earlier this week.

He estimated that reconstruction would begin by Sept. 1, and that the new resort would be completed in about three years.

“It could be a little faster, and of course, it could take a little longer just depending on weather and other things that are out of our control,” he said.

The redevelopment of the 350-room resort is expected to cost roughly $160 million, according to Manning, with funding coming from a combination of internal capital and bank loans.

Several other developers have made failed attempts at rebuilding the hotel since its destruction by Hurricane Iniki back in 1992, but Reef Capital has been involved since 2015.

Initially, Reef Capital Partners was a lender to previous developer Coco Palms Hui LLC, but it took over the property in 2019 after the LLC defaulted on more than $11 million in financing on a $22 million mortgage.

Manning said Reef Capital was initially planning on selling the resort, but those plans changed when he started working on its development a couple of months ago.

“I did a lot of research and learned about the rich history of Coco Palms and how important that site is,” said Manning. “And so all my partners agreed, and we decided to keep it,” he said.

Manning’s hope is to restore the site to its former glory, and he maintains it will be operated in a “way that pays respect to its rich history.”

“My goal for the project is to build it back and honor the past,” he said, noting the land’s history as a royal residence, and later, its celebrity era.

In the 19th century, the resort was home to Kaua‘i’s last queen, Deborah Kapule Kekaiha‘akulou. When it was later established as a resort in 1953, several celebrities, including Elvis Presley, Frank Sinatra, and Rita Hayworth were known to frequent the hotel.

The resort’s popularity as a tourist destination and wedding venue spiked after it was famously featured in a wedding scene in Presley’s 1961 movie Blue Hawaii.

Manning said “thousands and thousands of people who had weddings, got married there, can come back and enjoy it,” adding he hopes the new development will “bring back the memories of back then.”

Planning Director Ka‘aina Hull, of the County of Kauai’s Planning Commission, confirmed Reef Capital has permission to demolish and rebuild all remaining structures at the now-derelict Coco Palms. But he added “whether or not construction will actually commence will remain to be seen.”

“They do have a condition of approval that once that last building permit is pulled, they have one year to commence construction. So that is a deadline now we are keenly watching.”

Plans to rebuild Coco Palms as a resort has been the subject of contentious debate for years between residents, developers and the county.

A 2022 change.org petition to stop its development has nearly 15,000 signatures, and states “there is a wide and passionate opposition to the establishment of another hotel in this location.”

In January, the Planning Commission unanimously denied a petition by community groups asking for a declaratory ruling that Reef Capital’s land use permits were no longer valid due to lack of substantial progress.

Hull told The Garden Island the commission decided against the ruling because they determined Coco Palms had met the necessary criteria to keep the permits in effect.

“From everything I can read … these are still valid permits,” he said.

Hull noted that he was not planning director when the permits were first issued back in 2015, but he would not second-guess the previous director and commission’s decision to approve the project.

“They looked at what they had, they look at the public testimony. And ultimately, (the permits) were approved,” he said.

Even though Hull and the rest of the Planning Commission determined they don’t have the authority to deny the permits, he understood why many residents were against the project.

“I don’t think myself or the County of Kaua‘i as a whole is really looking to facilitate, and prop up, and compel, and motivate more transient tourist resort types of accommodations,” he said.

Hull noted that any major resort development in Hawai‘i is going to be faced with scrutiny because of tourism’s impact on Native Hawaiians and other issues of cultural identity.

“But we have to respect the private property rights that a resort designated site that has active permits to build a resort still enjoy.”

Kauai resident Jason Blake said the Planning Commission was “failing residents” by allowing the project to continue. He told The Garden Island that the resort’s location, which fronts a major road right across the street from Wailua Beach, would cause heavy traffic and huge problems throughout the island.

“What happens when we dump a mega resort with hundreds of hotel rooms, a thousand more tourists, and hundreds of cars right there, at one of the most critical traffic points on the island?” he said.

Blake also emphasized the eroding shoreline at Wailua Beach, which has retreated significantly over the years.

“If you were here a decade ago, that beach went out for hundreds of feet. It’s now not a beach anymore,” he said.

“And who’s gonna staff the resort,” he added, pointing to major staffing issues on the island.

“This isn’t like an issue that’s really gray, and it depends on your viewpoint and everything. It’s black and white for most people. Like this is a bad, terrible idea. And so why is it moving forward?”

But Manning said Reef Capital Partners has considered these concerns, and that possible solutions may include a free shuttle back and forth to the airport, carpooling, having quality restaurants on-site, and other measures to prevent residents from crossing the highway and increasing traffic.

“We’ll certainly do the best we can to mitigate any problems that we create,” he said.

“I think the Coco Palms deserves to be rebuilt. Its history needs to be kept and not forgotten, and then we just try to do it as responsibly as we can.”

•••

Emma Grunwald, reporter, can be reached at 808-652-0638 or [email protected].

Well, that was quick.

https://beatofhawaii.com/state-stops-coco-palms-resort-with-cease-and-desist-order/

State Stops Coco Palms Resort With Cease And Desist Order APRIL 20, 2023 by BEAT OF HAWAII

The future of Coco Palms redevelopment still hangs in limbo. The State of Hawaii Department of Land and Natural Resources (DLNR) has issued a cease and desist order against the Utah-based developer’s work on the property. The reason the state alleges this is that unpermitted work is occurring.

Strangely, the owner’s representative said instead that the company was doing Kauai a favor by clearing vegetation on the overgrown property at Kapaa.

Will this put the kibosh on the 350-room resort? The future of Coco Palms’ development is anything but clear. While the demolition is beginning, the community is outspoken in its attempt to prevent the development for many reasons. The Kauai Council Chairperson said, “The sentiment today from what I’m hearing as I go across this island is completely opposite. No, they don’t want to see a new hotel there.” The degree of community sentiment against the development is overwhelmingly strong.

Multiple sources report that the cease and desist order was issued to Coco Palms Ventures, which required an immediate stop to the unpermitted clearing of trees and other vegetation. The developer is allegedly subject to fines of $15,000 per day and has thirty days to respond to the order.

There is so much vaguery about what’s going on in relation to the development company, the state DLNR and the Board of Land and Natural Resources. The DLNR said that the developer is in potential violation of the state land use conservation district. That inasmuch as equipment is being used and vegetation and trees are being removed without the necessary permits.

So many questions remain about Coco Palms. The developer sees a new Coco Palms Resort rebuilt by 2026. That is without regard to the incredible “Kapaa crawl” traffic, the eroded beach across the highway from the resort, plus a plethora of other concerns, including cultural ones, and staffing issues.

Coco Palms Ventures has brazenly stated that they can import adequate people to Kauai to staff the resort.

The impact of a 350-room hotel at that location is enormous. Also, the location is deemed so culturally and historically important that it should never be developed. Also, the long-postponed development appears based on permits many believe are no longer valid.

One thing is for sure. This is not going to be smooth sailing.

We welcome your comments.

Developer's response...

https://www.thegardenisland.com/2023/04/22/hawaii-news/coco-palms-developer-responds-to-dlnrs-alleged-land-use-violation-letter/

WAILUA — The Department of Land and Natural Resources is investigating alleged land use violations by the latest developer of Coco Palms Resort, and has asked to stop all work.

But Reef Capital Partner’s Managing Director Patrick Manning said that they are committed to resolving the issue and continuing with their approximately $250 million plan to reconstruct the 350-room resort over the next three years.

The Utah-based real estate investment firm, also known as RP21 Coco Palms LLC, took over the site from a previous developer in 2019.

The Department of Land and Natural Resources Office of Conservation and Coastal Lands issued the letter to Coco Palms Ventures LLC, the name of a previous developer, stating that it has received evidence showing work being done within the Hawai‘i State Land Use Conservation District without proper authorization.

“Our office does not have any records of any permit being sought or secured for any land use on the subject parcel,” said the DLNR letter, which was signed by Board of Land and Natural Resources Chair Dawn Chang.

The letter attached photos showing the approximate location of the work, a short drive from the Coco Palms construction site off of Koki Road. The photos show green waste being pushed on the property, cleared land, and piles of vegetation.

The letter recommended the developer stop all work. It also asked for a written statement within 30 days and stated that the developer could face thousands of dollars in fines if the activity continued.

“Should you fail to immediately cease such activity after written or verbal notification from the department, willful violation may incur an additional fine of up to $15,000 per day per violation for each day in which the violation persists,” wrote the DLNR.

But Manning said that the situation was an honest oversight by his team, and they are working with the DLNR to receive the proper rights.

“The problem is that we thought we had approval from the county. It was an innocent mistake. We were clearing, getting ready for demolition. We didn’t realize that, well, we missed a step,” said Manning, adding that receiving proper permissions is a complex process.

“We’re working closely with the DLNR to remedy that and just keep moving forward. It hasn’t changed our plans at all. Just having to fix an oops,” said Manning in an interview with The Garden Island on Friday.

Manning explained that they were clearing the area and moving debris, so that they’d be able to bring the abandoned buildings down to be reconstructed.

“That’s everything from cutting down trees, to years and years of overgrowth, to cars. Just getting everything out of there,” he said.

Manning wasn’t “100 percent sure” what had been placed in the unauthorized area, but noted the letter stated, “It was just the clearing of the land.”

“We have removed palm trees for sure on our property. I’m not 100 percent sure if we removed palm trees on the DLNR property,” he said, adding that they intend to replant any trees that have been cut down. “It’s just we can’t get in to do the demolition if there are trees prohibiting us from getting into the concrete.”

Manning also noted that the letter was not a cease and desist, but a “recommendation” to stop clearing on the DLNR property.

“Of course, we’re taking that recommendation, stopping doing anything on the DLNR while we are working with them to remedy so that we can then go forward,” said Manning.

Controversy has surrounded the once-renowned Coco Palms resort since its destruction by Hurricane Iniki back in 1992, with several previous developers making failed attempts to rebuild the site.

Mason Chock, a former member of the Kaua‘i County Council, is one of many community members to have been outspoken about opposition to the site’s reconstruction.

Chock is also the vice president of the nonprofit group I Ola Wailuanui, an organization that is “dedicated to honoring the cultural and historical significance of the area,” he said.

Chock listed sea level rise, climate change, over-tourism, and heavy traffic as reasons why Coco Palms, which fronts a state highway across the street from Wailua Beach’s eroding shoreline, should not be rebuilt.

When asked about the recent letter from the DLNR, Chock said that if they are found to have committed a violation, the DLNR should prohibit the developer from continuing.

“If there was a violation, I think that it is clear and clear cut and simple. Then they need to stop,” said Chock in an interview with The Garden Island on Friday.

“If people who are coming from the outside, developers, expect to turn a dime and make money off of our own backs, then they should at the very least follow the rules and regulations we have in place in order to coexist with the community.”

The DLNR declined to comment further on the letter and alleged violation.

“As the alleged violation is currently under investigation, we cannot comment further at this time,” said the DLNR’s Senior Communications Manager Dan Dennison in an email response to The Garden Island on Friday.

•••

The latest...

Kauai City Council talking about imminent domain. Current owners say they'd be willing to sell the property to the county for $22 Million.

https://www.kaumakani.com/kauai-county-council-discusses-buying-coco-palms/

(story from The Garden Island newspaper)

Kaua‘i County Council discusses buying Coco Palms BY THE CITIZEN ON MAY 11, 2023

LIHU‘E — After 30 years of failed attempts at private development and little progress made in improving the condition of the dilapidated Coco Palms Resort, the Kaua‘i County Council is considering taking matters into its own hands.

At a Wednesday briefing, the county council discussed the possibility of acquiring the property — either through outright purchase or condemnation and eminent domain.

Council Chair Mel Rapozo voiced support for initiating eminent domain proceedings, citing a history of trust issues and broken promises from a line of developers who have been involved in trying to resurrect the hotel after it was wiped out by Hurricane ‘Iniki in 1992.

Multiple attempts at redevelopment have ended in failure, with the most recent effort fizzling out in a 2019 foreclosure.

“I am not going to sit here and watch lie after lie after lie, promise after promise after promise,” said Rapozo. “I want the owners to know, I hope I can get the council’s support to move forward. We’re not playing around this time.”

The suggestion was met with an impromptu round of applause from those in attendance, many of whom came to testify against a hotel development on the site.

Rapozo suggested tapping county reserves or seeking state funds to acquire the property, which would likely carry a hefty price tag.

“I believe if this is what the community wants, we can get it done,” he said.

Eminent domain — the process by which the government takes over private property for public use while compensating owners — was initiated by the county in 2021 when the council approved a resolution to acquire a parcel of land in Kilauea for affordable housing. That condemnation proceeding is still working its way through the courts.

The Coco Palms developers, led by Utah-based RP21 Coco Palms LLC, expressed their willingness to sell the property at the Wednesday meeting.

“My client wants me to communicate to you today that if you want to purchase the property, you need not bother with condemnation or eminent domain. They will agree to sell the property to you for $22 million,” said attorney Mauna Kea Trask, who was recently retained to represent the developers.

Trask reported the money that had been lent to the project was from a pension fund for firemen, police officers and other government employees.

“The reason why we’re pursuing development on this project is because we need to make this money back,” said Trask.

The group has sent mixed signals about intentions for the property over the past year, alternating between expressing enthusiasm for going forward with a 350-room hotel project and expressing interest in selling.

Alleged land use violations

State Board of Land and Natural Resources Chair Dawn Chang updated the council on alleged violations on state-owned parcels of land adjacent to the Coco Palms property, which were the subject of a notice sent to developers last month.

The Coco Palms property is made up of parcels of land owned by the LLC, which include most of the major structures, and surrounding parcels leased from the state.

Chang cited several alleged issues with the developers’ conduct on the state lands, including that they have failed to maintain the premises, failed to submit annual reports, failed to pay property taxes, and cut down palm trees without consent.

The state Department of Land and Natural Resources is conducting an investigation into the developers’ actions, after which they will have the discretion to revoke the leases.

If those leases are terminated, the valuation of the property would likely be significantly reduced.

Trask said developers did not think they had committed any violations, and they planned to work with DLNR to address the issues.

“We definitely want to work with the community. We don’t want to fight the community,” he said.

Legal issues with the state leases have also become the subject of a lawsuit filed by community group I Ola Wailuanui, which is set for a hearing next month. The community group has expressed interest in acquiring the property for use as a cultural center.

As of late Wednesday afternoon, the council was still taking public testimony about the development.

A resolution urging DLNR to “act within its power to prioritize public access, uses, and purposes when considering requests for leases, licenses, permits, or other agreements” in the area near Coco Palms, was slated for discussion later in the meeting.

•••