Panel wants to maintain quick permitting for Coco Palms

The Kauai County Council’s Planning Committee wants to give an investment group more time to forge plans to restore an iconic resort battered by Hurricane Iniki in 1992 before the full Council decides whether to repeal an ordinance that helps expedite reconstruction of structures damaged by the Category 4 storm.

The Planning Committee on Wednesday backed a proposal to defer action on Bill 2502, which would repeal the expedited permit process for Iniki-damaged structures, for two years while the group continues to set up plans for restoration of the Coco Palms Resort.

Before it was shuttered 21 years ago, the resort — best known as the backdrop in Elvis Presley’s "Blue Hawaii" movie — was famous for its Polynesian themes and attracted celebrities including Bing Crosby, Mitzi Gaynor and Frank Sina­tra.

In August, Oahu investment partners Tyler Greene and Chad Waters entered into an agreement to buy the hotel under the name Coco Palms Hui LLC.

The Planning Committee voted unanimously to recommend the two-year deferral to the County Council, which is scheduled to discuss Bill 2502 at a meeting set for Wednesday.

In June, Mayor Bernard Carvalho Jr. sent a letter to the Planning Commission requesting repeal of the expedited permitting, maintain- ing that property owners have already had ample time to use it. It was designed to assist in reconstruction by allowing developers to build on the same "pre-Iniki" footprint, avoiding additional regulatory hoops and associated expenses.

If repealed, plans to restore the Coco Palms Hui’s plans would not be possible, said their attorney, Michael Belles, at Wednesday’s committee meeting.

The group intends to purchase the property from Maryland-based Petrie Ross Ventures and is confident it can secure financing and start construction if Kauai’s reconstruction process remains unchanged.

During the meeting Wednesday, Belles requested more time to allow developers to work with the county attorney’s office and various departments on restoration plans.

Demolition permits for Coco Palms have been suspended pending further consultation with the county attorney’s office, planning department and public works department, according to county spokes­woman Mary Dau­bert.

Developers Greene and Waters want to construct 300 to 325 units. During its heyday Coco Palms had more than 400 rooms, suites and thatch bungalows. The revamped resort would provide more than 400 jobs, according to the investment group.

Planning Committee Chairman Tim Bynum said that following past failed attempts to restore the resort, there is cynicism in the community about the prospects of yet another developer giving it a try. He said he was willing to accept holding off on repealing the expedited permit process to give the project a chance.

"I have a special feeling that these are the guys to make it happen," said Councilman Ron Kagawa, adding that he has confidence in the Coco Palms Hui.

Coco Palms site manager Bob Jasper, who conducts tours at the dilapidated resort, agreed. Jasper said he has observed that Greene and Waters are deeply committed to restoring the resort, whereas previous developers seemed to lack such commitment.

The group so far has spent almost $500,000 to remove overgrowth, trim and cut down trees, and conduct hazardous-materials studies. The Coco Palms Hui also installed a construction fence around the site and brought contractors, architects and arborists to the property.

"Nobody has done this since the hurricane," Jasper said at the meeting. "To me this is the group that is going to do it, and they’re going to do it right."