Coco Palms Resort Hotel, Kauai, HI (Hotel)

Bummer. Commercial loans often require quite a bit of forecasting to ensure the project doesn't get funded, then built, and then falls flat on its face with the bank coming out as a big loser. There may be quite a challenge behind getting this off the ground, to prove to the banks that they can build it and then survive long enough to pay off the loans. There may also be environmental impacts which are making life difficult and very expensive for the developer. It's a very nice property with quite an appealing history, but could still be quite an uphill struggle to redevelop. I hope we'll learn more soon.

Yeah, everything can be so complicated.

I don't know that another developer is lurking at this point, but not everyone is in favor of the resurrection.
Since it closed the area's become busier and the traffic gets pretty bad; a lot of people are concerned with how much worse that'll be once all those additional hotel guests come back. Plus, it's been an eyesore, rotting away, for almost 25 years and there's a certain sense of 'enough already, just tear it down.' Some hope the land could be turned into a park instead of another hotel.

Here's another story from today with a few more details on the financing delays. Sounds like they changed the application to be for a different type of loan which would hopefully close sooner; but then they'd need a second construction loan later.

http://thegardenisland.com/news/local/coco-project-still-alive/article_722b0a91-02b7-5e93-975f-421757f5a117.html

A couple more recent articles.

http://thegardenisland.com/news/local/govt-and-politics/financing-near-say-coco-palms-developers/article_4a5d1b0a-dc1f-5195-9bfe-c536dede30fb.html

Some brief ones from the hotel development perspective. I'm a little concerned about the "upper-upscale" designation. In my experience following the redevelopment story, those excited about this project are in it more for the nostalgia. I'm guessing those with an "upper-upscale" budget wouldn't be interested (and many like me who are interested won't be able to afford it.)

http://www.bizjournals.com/pacific/news/2016/03/02/hyatt-hotels-corp-s-unbound-collection-includes.html

https://us-mg5.mail.yahoo.com/neo/b/launch?fid=Inbox&order=up&tt=13816&pSize=25&.rand=1481654303

Everything I've heard locally has room prices right in line with the other hotels here. Which means I won't be able to afford to stay there either!

Breaking news!! Escrow has finally (today) closed! An extension on demo permits was granted last week to allow this, so, looks like things will finally start happening!

Thanks for the update! I heard it here first. :)

I'm looking forward to seeing what they do. With all the neglect, plus the storm and fire damage, a complete re-build allows modernization. And to make money, it will have to attract and hold a following. So I'm expecting some vintage stuff to remain, like maybe the Elvis bungalows. Definitely the beautiful landscaping and the canals. I do want to visit when it's completed, I'm sure it will be paradise.

The plan is to rebuild it as it was. Everything wood will be torn down and rebuilt. So all bungalows will be completely rebuilt. The main three story hotel wings will be torn down to their steel and concrete core structures,, and redone.
The lagoon stays the same, the entire grounds layout stays the same, all buildings are to be rebuilt on their existing footprints.
I would imagine everything will have to be updated code-wise, and with newer type materials, but the intent is to have the place look the same.

Demolition is actually underway. Tours have ended for at least the next six months or so; stuff is starting to come down.

This article still mentions a projected opening in 2017, but they've been saying Spring 2018 for a while (which is also probably optimistic.)

http://www.hawaiinewsnow.com/story/32252028/kauais-coco-palms-resort-begins-long-awaited-demolition

Thanks for the update, I'm pleased the article mentions that they're going to "honor the past" by preserving some key elements of the original resort.

I'm looking forward to seeing it, and the island of Kauai, as its one of the islands I haven't explored yet.

It would be great if we could do a Tiki Central meetup there, although it certainly would not be an inexpensive proposition. I'm sure the new resort will command top dollar. Just imagine the scenery, the dining, and (hopefully) the talented bartenders.

Another article from today with a few pictures.

http://thegardenisland.com/news/local/demolition-time/article_f56769e0-a8e1-580a-9fac-bec69ace7b0c.html

That's a nice article -- I really like the very specific details on what they are saving versus just demolishing.

I hope they offer some nice intro pricing when the place first opens.

Don't know if this is the place to ask this...however, does anyone have any straight on or high detail shots of this mural / mosaic. I would also love to know more info about the artist. We visited a few years ago and took the tour from Bob and I was mesmerized by it. Thanks.

-Mockingbird

Great mural with the colors still bright :down:
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-Randy

Hi, Mockingbird - maybe ask about it on the Coco Palms Facebook page? Bob runs it and has been posting a bunch lately.
The group is listed as: Coco Palms Resort, Kauai.

Demolition is moving along; the bungalows are gone. They were talking about trying to save the Elvis bungalow and move it to another location, but it was too far gone.

http://thegardenisland.com/news/local/talks-turn-to-permits-for-coco-palms/article_11201777-7620-5a7e-8df1-8e00ecee688c.html

I will check with Bob on the FB page. I was just checking here first cus I know he is super busy with all the demo and such. :) Luckily I found out last night that the pictures I had taken of the details I thought were lost, indeed were not, and on my wife's backup HD.

Does anyone near the resort have a drone they could use to take some progress pictures? I'll have to join the Facebook page and see what others are doing to stay on top of the re-construction.

Too bad about the Elvis room not being salvageable.

Another update. The demolition part is almost finished. (I don't know about anywhere else, but if you're a Facebook person, Bob has been posting lots of photos there.)

http://thegardenisland.com/business/local/coco-palms-demolition-nears-end/article_12e587d8-7c41-5930-9d03-ccde83993265.html

Good news - UPDATES are being posted to the resort's web site at https://cocopalmskauai.com/.

Their target for opening is late 2018. Tremendous progress is being made to remove weathered and destroyed old stuff which cannot be re-used. The owners seem committed to resurrecting the existing footprint of the resort with 350 or so rooms for the 2018 opening. Go to the web site for some cool photos and additional information and to be added to their emailing list.

The photos and architectural renderings are amazing.

Here is a standalone link to recent drone footage by wedding photog Jon Gibb:

https://vimeo.com/233740797

His drone takes you inside some of the structures and around the property. There is some "fluffy" context footage showing the beauty of the beaches around and near the resort. I thought it is a good video which in the future will really amaze folks who get to see the new and renovated resort.

Can you imagine having drinks and dining here? It should be superb! Start saving for your trip now.

Interesting that they are posting updates on their website. Maybe something will start happening soon. There has been zero activity on the site for going on 6 months. The demo was finished in the spring, and it's been sitting gutted and waiting since, with no workers, no vehicles to be seen. There's no possible way it can open in 2018.
Not trying to be negative, as I really want to see this rebuilt and opened! Just reporting the reality as I drive by it daily.

Lots of driftwood on that beach Bill :wink:

On 2017-10-12 20:24, 4WDtiki wrote:
Interesting that they are posting updates on their website. Maybe something will start happening soon. There has been zero activity on the site for going on 6 months. The demo was finished in the spring, and it's been sitting gutted and waiting since, with no workers, no vehicles to be seen. There's no possible way it can open in 2018.
Not trying to be negative, as I really want to see this rebuilt and opened! Just reporting the reality as I drive by it daily.

Thanks for the in-person update! They have similar information posted on their Facebook page. My only guess is that they are completing things which are required before construction begins - finalizing plans, funding, permits, etc. and waiting for the construction company to move people, equipment, and materials to the site. I would expect the first thing that would happen is power poles and construction trailers would show up. Please keep us posted -- and again thanks for the in-person update.

Yeah, apparently they're still waiting for permits and, last I heard, funding. It sure would be nice to see something other than the sad empty shells of buildings sitting there, but I don't expect it anytime soon.

Here's another story from last month

http://www.hawaiinewsnow.com/story/36361931/there-are-big-plans-afoot-for-famous-coco-palms-resort-but-not-everyones-on-board

So glad I copied and pasted those photos from their web site and posted them here -- just in case all this were to fall through again. I certainly understand the folks who want to protect the island from further commercialism.

I went back to the beginning of this thread and looked at the photos. One thing is certain to me - if this place were to be rebuilt and resurrected, they are going to be able to use many of the modern materials which would be more durable and more attractive than what was originally used. We make so much architectural stuff out of color-impregnated PVC now, and it's heavier and better looking and more durable.

I'm looking forward to seeing this place come back to life looking even better than it originally did.

On 2017-10-12 21:31, MadDogMike wrote:
Lots of driftwood on that beach Bill :wink:

Haha, that did catch my eye, Mike! Up around the corner on the right, all up on the rocks! I've recently picked the broad beach pictured, but never looked further north, now I know! ?

Here's the developer's web site: http://greenewaters.com/

Coco Palms looks like one of three properties currently in development by this group.

Clicking on the Coco Palms image reveals a number of out-of-date articles and reports. Construction was planned to begin "Q4 2015" and be completed by fall 2018. As someone else posted here earlier, it's more realistic to expect the actual opening in 2019. But as slowly as things have progressed, it's possible we could see it sit even longer and then open in 2020 - if at all.

So the place is cleaned up, but that's still not an indication that they will be allowed to begin construction. At least the developer appears knowledgeable and experienced. In the end the development would bring lots of money and employment to the island. That's a tough wind to resist. But cultural and preservation forces are strong as well. It's going to be interesting to watch this. There are many who oppose further development on Kauai, and I understand some of the reasons.

Update found here:
http://beatofhawaii.com/coco-palms-to-be-nationally-branded-construction-to-start/

Coco Palms Kauai 2018 Update | Will It Ever Happen?
DECEMBER 30, 2017 by BEAT OF HAWAII 31 COMMENTS

Update on Kauai Coco Palms Hotel, Kauai’s first and arguably most iconic resort ever. The place where the rich and famous once stayed and where Elvis Presley’s Blue Hawaii was filmed.

Depending on who you ask, the Kauai resort is still scheduled to open as a Hyatt managed property with 273 rooms, 77 suites, 3 restaurants, a cultural center, retail space and more. It is to be part of Hyatt’s Unbound Collection, a group of upscale luxury properties.

Until something happens, Coco Palms sits largely unchanged, destroyed through hurricane, fraud and neglect for a quarter century.

Since last we reported in summer 2017, little has occurred at the disfigured Coco Palms. County officials are tiring of the endless nonsense surrounding the project, even by Kauai standards, while offering nothing to move the project forward in any direction. It is looking more every day like a project destined for nowhere.

There is talk again about an alternative plan for Coco Palms, such as a county park. This is something that has been suggested for years. How that would happen, however, and where funds would come from to undertake such a process, is totally unclear.

Following demolition, construction was to have begun last spring, but never occurred. Dozens of building permits are apparently still pending. If started, the $135 million construction may take two years or more to complete, with target completion date now in the 2020 range. We know from experience that on Kauai everything takes longer than anticipated, and in the case of Coco Palms, even longer than that.

If these issues aren’t enough, three major new problems have arisen at Coco Palms.

1. A land dispute continues that arose last year when a group of Native Hawaiians claiming to be descendants of Kauai’s King Kaumualii began living on the property. Last summer a judge refused to remove them from Coco Palms as more information was needed to determine the rightful owners. A court date was set for this month. The developers have taken the position that “the county recognizes us as the owner of the property, and so we see it as criminal trespassing.”

2. Flood zone concerns. We’ve heard that county engineering is saying that the resort, if rebuilt, would need to comply with current flood abatement standards. Those did not exist at the time of the original resort. That could result in significant unanticipated costs and delays in order to flood-proof large areas of Coco Palms.

3. Is there a market for this new hotel? If the resort is ever rebuilt, how it can position itself in relation to other nearby Kauai hotels isn’t clear. Coco Palms is directly located on a very noisy stretch of Kuhio Highway, with no beach access. Competitive hotels have been built in recent years that, while not Coco Palms, offer beachfront locations at prices that could undermine the potential for profitability.

For anyone interested, the paper has been covering the current trial - there are a few recent stories linked here:

http://www.thegardenisland.com/?s=coco+palms

Good article and site! The comments at the bottom are VERY enlightening. I do not envy the judge - it will be a tough decision to make.

The one thing I see clearly, though, is that if the land were to remain as it is, or be turned into a county park, there is no guarantee that any cleanup, maintenance, or further development would actually ever take place. Would the native Hawaiians (if they are found to be truly "native" in the required sense) actually do anything if they won their case? Or would they just move on to somewhere else and leave the Coco Palms land alone? I think they have the right to do that if they win their claim. But there may be other better (or more significant) sacred ground and we're just not hearing about it. I'm left wondering exactly how special the grounds of the Coco Palms really are versus other areas of Kauai.

There are good arguments from both sides, and the judge seems to be investigating and will have to sort it all out. It is going to be very interesting.

I noticed this story didn't come up in the newspaper search results I posted above; another complication.

http://www.thegardenisland.com/2018/01/09/hawaii-news/report-occupants-have-no-claim/

Also worth noting, a few weeks ago, Bob Jasper started doing his tours there again. Monday -Friday at 10AM.

Bob's tours are great! Highly recommended if you get a chance to go.

Update to the current trial:

Coco Palms occupiers have 5 days to leave

http://www.thegardenisland.com/2018/01/24/hawaii-news/coco-palms-occupiers-have-5-days-to-leave/

Another story:
http://www.thegardenisland.com/2018/01/24/hawaii-news/coco-palms-at-defining-moment/

[ Edited by: bamalamalu 2018-01-24 11:49 ]

Thanks for posting. Looks like the most problematic obstacle to development has been removed. I looked up the "Kingdom of Atooi" and found lots of weird stuff. In a nutshell, there are more people in line ready to take up the matter of what belongs to today's ancestors of the native peoples. What a mess. It's hard to tell who is right and who is just blowing smoke. Technically every square inch of every island could in some person's view be considered sacred and an important part of the native history. I can only trust that the Hawaiian elected officials and their judges are doing the right things.

The big mystery to me is finding out if they are still able to re-build the resort and then turn a profit.

Some activity today: the defendants are being forced to leave the property. I saw a notification that the road is open again, so they may be finished.

http://www.kitv.com/story/37568829/coco-palms-squatters-ousted#.Wo8deeChTpk.facebook

http://www.hawaiinewsnow.com/story/37569404/authorities-clearing-occupiers-from-coco-palms-property

Another story

http://www.thegardenisland.com/2018/02/22/hawaii-news/police-remove-coco-palms-occupiers/

Haven't checked in a while, looks like the only recent stuff are very general reports in other articles that construction is still delayed. But hey, looks like the main road along the beach is going to be repaired and widened because it's an election year, hahahaha... 20 days ago the AP published the story below about another lawsuit in a line of lawsuits. It seems that attorneys are the only ones currently making money off the old Cocoa Palms.

http://www.westhawaiitoday.com/2018/05/07/hawaii-news/federal-suit-filed-against-coco-palms-developers-architect/

Federal suit filed against Coco Palms developers, architect
By Associated Press | Monday, May 7, 2018, 10:21 a.m.

LIHUE, Kauai — A lawsuit has been filed in a Virginia federal court against the developers and architect rebuilding the Coco Palms Hotel in Hawaii.

The suit filed in late March by Virginia resident Ruthann Caudill, president of the Jacob Broom Society, cites alleged violations of the Endangered Species Act, desecration of graves and the prevention of religious freedom, The Garden Island reported.

It seeks damages of $3.5 million.

The basis of the suit is activity that started on March 16 at the Coco Palms site, according to the lawsuit.

Caudill declined to comment, the newspaper reported.

A lawyer for the three people targeted in the lawsuit said it won’t stand up in court because it wasn’t filed against the development company Coco Palms LLC.

It was filed against Tyler Greene, Chad Waters and Ron Agor.

Their lawyer, Pierce Murphy, filed a motion to dismiss Caudill’s suit because Hawaii courts have already ruled in favor of Coco Palms Hui LLC, and because Caudill lives in a suburb of Washington, D.C.

“She claims a right to sue my clients under, among other things, the 19th century treaty between the Kingdom of Hawaii and the United States, which is about as realistic as if I were to sue you for violating the Treaty of Versailles,” Murphy said.

Murphy is defending two other clients in cases filed by Caudill in U.S. court, he said.

Here's a report from two weeks ago - another hurdle to rebuilding the resort has been overcome.

http://www.thegardenisland.com/2018/06/13/hawaii-news/lawsuits-behind-coco-palms-rebuild-to-continue/

By Bethany Freudenthal The Garden Island | Wednesday, June 13, 2018, 12:05 a.m.

LIHUE ­— A federal lawsuit filed in Virginia against Chad Waters, and Tyler Greene, owners of Coco Palms Hui, LLC, and architect Ron Agor, has been dismissed.

According to court documents, the lawsuit was dismissed because the court lacks personal jurisdiction over all defendants, as the plaintiff’s complain lacks allegations that the defendants are subject to personal jurisdiction in Virginia.

“We are pleased with the decision and don’t have any other comment at this time,” said Pierce Murphy, associate attorney at Silverman Thomson, Slutkin and White, who defended Waters, Greene and Agor on the matter.

In a written statement to The Garden Island newspaper, Waters said with this and other frivolous legal actions behind them, Coco Palms Hui, LLC, is looking forward to refocusing on the job they started a number of years ago, completing the rebuild of Coco Palms Resort.

“As we stated from the beginning, the federal lawsuit filed by Virginia resident Ruthie Caudill was factually inaccurate and completely frivolous. As expected, the federal court in Virginia has granted our motion to dismiss,” Waters said.

Waters continued that Caudill has a well-known history of filing similar actions in court, that have all led to the same conclusion — dismissal.

“As far as we know, she has never been to Kauai or anywhere in the state of Hawaii for that matter,” Waters said. “Why she continues to harass us and the myriad of other people and entities on Kauai is a mystery to everyone.”

To this day, Waters said, Caudill continues to offer advice to anyone who listens to her.

“Her absurd legal notions are endless, her nonstop FOIA (Freedom of Information Act) requests have wasted thousands of hours of time for government agencies from the County of Kauai, USFWS, Army Corps and others. You name the government agency and good bet that she has harassed them for something,” Waters said.

The suit was filed in late march by Caudill, president of the Jacob Broom Society, and sought monetary damages in the amount of $3.5 million and alleged desecration of graves prevention of the Kanaka Maoli to freely practice their religion and the disruption of an endangered water bird habitat.

In an emailed statement to TGI, Caudill said she is planning on appealing the court’s decision. She said she initially filed the lawsuit to stop the desecration of the iwi and the destruction of United States Fish and Wildlife Services habitat and animals.

“I have already sent for the U.S. Supreme Court information, which I will get shortly in the mail,” Caudill said.

•••

Bethany Freudenthal, Courts, Crime and County reporter, 652-7891 or [email protected]

From the Honolulu Star Advertiser on July 8th, 2018:

Judge rules for developer in Coco Palms dispute, paves way for Kauai resort
Associated Press July 8, 2018 Updated July 8, 2018 2:45pm
http://www.staradvertiser.com/2018/07/08/breaking-news/judge-rules-for-developer-in-coco-palms-dispute-paves-way-for-kauai-resort/

LIHUE >> A Hawaii developer will be able to lay groundwork for a resort in Kauai, ending court dealings in a lengthy property dispute.

Circuit Court Chief Judge Randall Valenciano ruled in favor of Coco Palms Hui LLC, owned by Chad Waters and Tyler Greene, paving the way for the company to file permits and eye the rebuild of the Coco Palms resort hotel, The Garden Island reported on Friday.

“We would hope to start (construction), within the next six to nine months,” Greene said.

Absent from the day’s proceedings, which lasted just over a minute, were Noa Mau-Espirito and Kamu “Charles” Hepa, who have been battling the development of the property.

They claimed ownership of the land through ancestral rights and planned to turn it into a cultural and religious center for the Kanaka Maoli.

Valenciano, who stated the court hadn’t received written opposition on the matter, ruled in favor of the summary judgment that was filed in court on June 6.

Mau-Espirito said his camp isn’t done filing appeals. He also said they weren’t informed of the day’s proceedings.

“I had no idea there was a hearing today,” he said. “The last thing I heard from them was their request in summary judgment so I answered their finding with my own answer. I was waiting to hear back from them. I didn’t know I had court.”

Mau-Espirito agreed that there currently wasn’t anything filed in Kauai courts regarding this case, but he did say they’ve filed appeals with the State of Hawaii Intermediate Court of Appeals on Oahu.

Greene said their goal is to bring back the old Coco Palms, which was damaged during by Hurricane Iniki in 1992 and had stood in disrepair until he and business partner Waters obtained a special warranty deed for the property from Prudential real estate for reconstruction.

Once completed, the $175 million project is slated to boast 350 rooms, 12,000 square feet (1,114.8 square meters) of retail space, three leisure areas and a cultural center.

Not much new going on, but here's a story from today's paper.

http://www.thegardenisland.com/2018/09/09/hawaii-news/mayor-not-happy-about-coco-palms/

Damn, that's a prett accurate appraisal of the situation.
There has been a construction office trailer parked in the front parking lot for a year or more, but that recently disappeared. Maybe it was moved somewhere on property that I can't see, but I'm thinking they got tired of renting it for no reason. There has been zero consteuction or any activity since the demolition ended, and I can't even remember how long that's been.
I really wanted to see this all happen, but my gut says it won't get rebuilt, and I'm now okay with that.

...And here's the latest response from the developers saying they're still on track.

http://www.thegardenisland.com/2018/09/20/hawaii-news/developers-coco-palms-project-back-on-track/

Another update, combining developer's & county's views,as well as the author's...

https://beatofhawaii.com/coco-palms-to-be-nationally-branded-construction-to-start/

Not quite on track....

https://www.thegardenisland.com/2019/03/26/hawaii-news/coco-palms-defaults/

Coco Palms Defaults
By Allan Parachini Special to The Garden Island | Tuesday, March 26, 2019, 12:05 a.m.

Efforts to redevelop the former Coco Palms resort have collapsed, with the two Oahu men behind the project facing foreclosure after defaulting on $11.2 million in financing they used to purchase the property five years ago.

Two Utah-based companies involved in financing the project said on Monday that the Coco Palms property, which consists of about 20 acres on Kuhio Highway at Kuamoo Road in Wailua, was in default and that the ruins of the hotel were being put on the market. The property is owned by Coco Palms Hui, LLC, formed by two Honolulu developers to take over the former hotel famed for hosting dozens of stars, most notably Elvis Presley.

The development follows several years of increasing uncertainty of the viability of the project to redevelop Coco Palms as a modern resort. The property has been in disrepair since it was heavily damaged during Hurricane Iniki in 1992. Coco Palms Hui is headed by Chad Waters and Tyler Greene, who run GreeneWaters, LLC, a Honolulu real estate development firm.

In addition to the 20 acres Coco Palms owns, the resort also occupies 14.8 acres of state land, which Coco Palms has leased since 1983, according to the Hawaii Department of Land and Natural Resources. Lease rights cannot be conveyed to another party without further approval by the Board of Land and Natural Resources, a DLNR spokesperson said.

Rumors of the potential failure of the project have abounded for more than a year. Both former Mayor Bernard Carvalho Jr. and Mayor Derek S.K. Kawakami have voiced frustration that little has happened at the site, which is gradually being taken over by graffiti vandalism and jungle overgrowth.

Neither Waters nor Greene responded to requests for comment on the situation over the weekend or on Monday.

Announcement of the loan default and new work to find a potential buyer for Coco Palms came in a news release from Utah-based Stillwater Equity Partners. Stillwater is working with Reef PCG, a lender and loan servicer, according to Aaron Gerszewski, Stillwater’s asset management director. Both firms are based in Alpine, Utah.

Gerszewski said the collapse of the Coco Palms project had evolved over the last two years or so, after Greene and Waters were unable to deliver on commitments to find funding to avoid default. Although foreclosure proceedings have not been initiated, he said, it would be a logical next step if Greene and Waters are unable to pull together enough money to cure the default.

In a news release distributed later Monday, Stillwater said Coco Palms received most of its working capital from PCG.

“GreeneWaters originally intended to pay off the loan from PCG by obtaining a construction loan, but were unsuccessful and defaulted on the loan in 2017,” Stillwater said.

“To avoid litigation that could potentially delay the project even further, PCG arranged a workout plan with GreeneWaters which included appointing Stillwater Equity Partners as the manager of Coco Palms Hui in exchange for granting GreeneWaters a final attempt at formalizing a plan and securing capital commitments.”

Stillwater said Greene and Waters have not, so far, produced evidence of new financing.

Stillwater added that it is “currently seeking a buyer or partner with hotel experience that can contribute the capital and resources needed to make Coco Palms an iconic hotel as it once was.

“Stillwater has engaged Colliers International to market the project domestically and internationally. In the event a buyer or partner is not found in the coming months, Stillwater is exploring other alternatives for the site that would benefit the community while paying off the PCG note and maximize the value for existing shareholders of Coco Palms Hui.”

The company added that: “In the meantime, SEP is already working with local crews in Kauai to clean up the frontage of the hotel and parking lot to minimize its dilapidated appearance and improve the overall image to potential investors as well as local residents.”

A county spokesperson confirmed that a Stillwater representative was on Kauai late last week and met with Managing Director Mike Dahilig and Planning Director Kaaina Hull in what was described as a “meet and greet” at which Stillwater disclosed that Coco Palms was formally in default on its loans. Stillwater said it broached the subject of county acquisition of the property, but that county officials said there is no available funding.

Kawakami has publicly supported the idea of making Coco Palms into a park and cultural center, but, the spokesperson said, the mayor did not meet with Stillwater’s representative and that the ongoing reality is the county has no way to finance such a transaction.

Gerczewski said Stillwater remains confident that Coco Palms could be redeveloped as a hotel, but that the location and modern hotel economics on Kauai suggest that it would have to be a budget property without the trappings of a luxury resort.

Coco Palms operated as a resort hotel from 1953 until it was devastated by Hurricane Iniki. After the hurricane, owners were unable to secure funding to rebuild, there were disputes over insurance, and the property and it sat abandoned for more than two decades.

In its heyday, Coco Palms was a favorite celebrities and Hollywood show business figures. Its most famous guests included Elvis Presley, Frank Sinatra, Rita Hayworth and Bing Crosby. The hotel served as a location set for several motion pictures, including “Miss Sadie Thompson,” in which Hayworth starred, and “Blue Hawaii,” a Presley film.

Coco Palms Hui was formed in 2013 by Waters and Greene, who insisted they would rebuild the abandoned hotel and restore it to its former glory. They had announced a $150 million project, but were only able to complete a partial demolition, in which interior and exterior walls were removed, leaving abandoned concrete skeletons of the original hotel structures.

Demolition began in 2016. Waters and Greene also announced that Hyatt hotels had signed a management agreement to operate the rebuilt Coco Palms.

Bummer for tourism, but excellent news for all the folks who opposed this project. But the real problem, if the local government takes over the property, is that it will become a tax burden. Costs to demolish and clean it up, plus re-development into a park and then ongoing maintenance costs, must be offset with some sort of revenue. On an island which already offers a ton of park-like paradise, it may not make sense to do anything with it other than demolition, clean-up, and let it revert back to wild land.

And the curse continues. Don't know when, where, or how but it seems like there is one. I also don't think this small county can afford it, but they need to move the main road north (just beyond the coconut grove), but that entails an expensive new bridge over the Wailua River. Then this property could extend all the way to the beach without a dangerous road to cross. This scenario would be ideal for a hotel developer or for a county family park. Even with a hotel and by state law, the beach would be public and safer to use. Whoever develops the land, some historic parts of the property (ancient and mid-century) should be recognized and preserved in order to educate future generations about the legacy of the place.

Here are a few updated photos, taken November 12, 2019.

After a lot more demolition and a couple fires, there's less that's still intact left to see -
The lobby is gone, the King's cottages are gone, half the restaurant/hotel building and the big shell are gone...
And the grove/grounds are veeerrry overgrown. I knew that was the case in advance, but it was still sad to see it.
Nothing going on right now.

But I still highly recommend Bob's tour if you're over there!

Thanks for the update. My local tiki bar was playing Blue Hawaii last night and I thought about an update on the Coco Palms - great coincidence!!

Sad to see that nothing is going on, as the structures only get worse without any care. But at least it's not being redeveloped into a Mega Walmart.

Yup. The bank owns the property now; apparently they're looking for another buyer or partner, and say they may develop it themselves if they don't find one. But I'm not holding my breath.

We took some more pictures with the real camera, when I get around to transferring them I'll try to add a few more.

In related news:

Happy Birthday to Me!

My gorgeous new Tiki, carved from a palm salvaged from the Coco Palms property by our very own 4WDtiki, Bill Collins!

I'm so excited to have this bit of history in my home. He'll be a focal point in the bar when we get it all put together.

Note the detail reflecting the old lobby arch window: