Losing bidder Star-Beachboys Inc. will have to move out to make room for the winning bidder of the Waikiki beach concession contract.

Circuit Judge Dean Ochiai denied this morning Star-Beachboys’ request for a temporary restraining order to prevent the city from installing the new beach concession operator.

Dive Oahu’s contract with the city was to have started last Saturday but Star-Beachboys remained in place pending today’s hearing.

Star-Beachboys claims that the city should not have awarded the contract to Dive Oahu Inc. because its owner does not possess state permits to conduct surf lessons or provide canoe rides. Dive Oahu says its employees who will be conducting the surf lessons and captaining the canoes have the required permits.