Developers committed to rebuilding the shuttered Coco Palms Hotel on Kauai are at risk of having their redevelopment permits revoked because of a lag in planned demolition work.
According to a condition stipulated in the project’s redevelopment permits, demolition must be completed within six months of the date of Kauai County’s approval of amended permit conditions. In this case the demolition deadline is April 13.
At this time, however, the county Planning Department lacks confidence that the developers will meet the deadline because they have yet to start demolition work.
“If there was progress on the development, it would give us some level of comfort to look at whether having this entitlement continues to be valid. But at this juncture we are looking at now, more than a few months out, we haven’t seen any physical progress,” said Michael Dahilig, Planning Department director.
He said he now plans to request a show-cause hearing, which would be conducted by the county Planning Commission, to determine whether modification or revocation of redevelopment permits issued to Coco Palms Hui LLC are warranted.
“Everybody wants to see this thing rebuilt,” Dahilig said. In previous meetings on the project, isle residents have testified that the hotel is now an “eyesore and a blight to the community.” The hotel — which became famous after the film “Blue Hawaii,” starring Elvis Presley, featured a wedding scene filmed at the hotel’s lagoons — has remained closed since 1992 after Hurricane Iniki battered Kauai.
The Coco Palms Hui recently informed the commission that it is awaiting approval on financing. Tyler Greene and Chad Waters of the Coco Palms Hui could not be reached for comment.
Development costs are estimated at $135 million.
The hotel’s Alii Kai and Shell buildings are slated to be gutted, and other structures to be fully demolished.
Last fall the commission granted the group an extension for turning in an application for demolition permits, which resulted in the six-month work period beginning Oct. 15.
