There remains unending controversy and upset about a final resolution to the much loved but long-troubled Coco Palms Resort on Kauai. Where the rich and famous once played and made famous by Blue Hawaii and Elvis Presley, the 20-acre property, plus 15 acres of leased land, sit in complete and utter shambles as seen below. And so it has been for almost exactly 30 years since Hurricane Iniki struck Kauai in September 1992.
Today the Kauai Planning Commission held a meeting to discuss the annual updates required on multiple permits that date back to 2015. Despite widespread opposition to redevelopment, the latest owners appear to be moving forward with some plans to create another hotel at the Coco Palms location. And yet years, even decades go by with no substantive changes in what we see. That appears to fly in the face of the County’s requirement that permits be acted on timely. And it raises the question of whether there is some subterfuge involved somewhere.
The new owner was announced during today’s meeting as Coco Palms 2021.
The new Utah-based company was first revealed at the meeting, according to the developer’s representative in attendance. We find no website associated with that name. The developer said his company is Reef Capital Partners. The representative’s testimony was somewhat bizarre. He indicated this was his first-time visit to Kauai, and that the developer has to date held no community meetings to address the myriad of valid concerns about any hotel development. Further he said plans call for all buildings to be taken down to the ground. He said that would happen in the next six months, but that the building foundations below would be preserved as is. That struck us and others at the hearing as implausible.
A change in plans for the future of Coco Palms was not to be the subject of today’s meeting. But…
A plethora of erroneous media reports over the past few days incorrectly portrayed the meeting as being decisive in the future of Coco Palms. The real purpose of the meeting, however, was to receive and potentially approve the annual reporting required from the developer related to the open permits that date back to 2015. The commission chair announced that today’s intention was to review the “Coco Palms status report agenda item.”
Testimony at the 4-hour Planning Commission meeting was wild and emotionally charged. It was uniformly not in favor of any future hotel development.
A Native Hawaiian raised the issue of the ownership of the land. Other Hawaiian representatives spoke at the hearing to protest the possibility of any future hotel development.
Gary Hooser, a former council member, and environmental activist testified against approval of the report from the current developers. He stated that the current permits have lapsed and are no longer valid. Hooser suggested that should the developers wish to proceed, they should be required to start the application process and environmental impact survey anew. He asserted that the County of Kauai acted illegally in multiple ways.
A Surfrider Foundation and Sierra Club representative said that today they have filed to have the permits terminated because they have not had any substantive progress in the past two years as required. The representative said that deadlines on permits from 2015 are not being enforced and just annual reports for another 30 years with Coco Palms in ruins isn’t acceptable.
Roger Netzer, a retired ENT physician of 50 years who lives nearby testified. He said that the prior beach is gone, the traffic is terrible, and flooding has become an issue. “It is totally impractical to build another hotel there… I’m shocked that there is a developer who thinks they can make it work.”
Much testimony was received against the development, some of which didn’t address the issues on the agenda. Instead, the meeting, widely attended on Zoom and in person, served to air long-held bad feelings about Coco Palms.
Council candidate Fern Holland testified that the location is so culturally and historically significant that it cannot be allowed to become another hotel development.
A former Coco Palms employee also spoke about the developers “desecrating a sacred spot.” While other testimony asked for the County to consider the highest good for all in its decision about Coco Palms’ future.
Council member and Beat of Hawaii editors’ friend Felicia Cowden testified that the developer had previously indicated that too many things were working against a future hotel development. “Watching how much there is profound cultural roots in that property — there were 86 bodies found symmetrically buried on the ground.” She indicated that testimony related to the excavation was never addressed. “Don’t yet again break hearts, upset people.”
Council member Mason Chock testified as well. When the permits were issued in 2015, “we were under the assumption that we would have a hotel or be moving in another direction. We were fooled and many of the leaders at the time thought it would move forward.”
Just what happened at today’s meeting.
1. The purpose of the meeting and the testimony were seemingly largely at odds. However, the testimony spoke to the bigger issue of dealing with these 2015 permits.
2. There were many requests to defer receipt or approval of the developers’ annual report in light of a plethora of facts. The goal of many who testified is at a minimum to require developers to obtain new permits, given that years have lapsed with no progress on the existing ones. That would be a big outcome of today’s meeting if it were to happen.
3. One of the last to speak was the new developer’s representative, Parker Enlow. His company financed the original acquisition and demolition of the structures. He claimed that a significant amount of work has taken place in the past two years and foreclosure actually took place and the title changed in May 2022. Enlow indicated they (the developers) have been working with a new buyer in the past year and a half. Four “well-funded investors” are taking part in the development plan currently. He indicated there “was some opposition,” which simply could not be more of an understatement. When asked about the status of the buildings’ decay, he said that all buildings will be taken down to the foundation, all building elements will be removed and the hotel rebuilt. They hope to take undertake the building teardown within six months.
The buyers are based in Utah, but the representative declined to provide their names. Parker said that undercapitalization was the cause of the failed efforts previously. He didn’t address other concerns expressed in any meaningful detail. When asked about overwhelming community disapproval, to our ears, he stumbled and couldn’t really address the situation. He did say that if the hotel doesn’t come to fruition for whatever reasons, he too is in favor of a cultural center.
Enlow also mentioned that “vagrants have been living on the property” and that the developers have just obtained eviction notices. In conclusion, he added that “we are within weeks of getting building permits.” When asked if he had been meeting with community groups opposed to the hotel, he again waffled. There have to our knowledge been no community meetings, and Parker said that this was his first time ever on Kauai.
4. The local architect on the project, Ron Agor, then also spoke on behalf of the developers. “We are committed to it being both a hotel and a cultural center… We are going to bring [Coco Palms] back and make it better than before… We will be inviting people, we want to do a presentation this fall.”
5. The planning commission concluded after nearly three hours by voting to go into a private executive session, wherein the public could no longer participate or witness the process. While understandable for legal reasons, it was nonetheless personally disappointing.
Note: If there is a further update we will publish it here when the commission returns to public view or provides any additional clarification. We welcome your input.
Following the private executive session, the commission returned briefly to public view. One of the commissioners indicated that the Planning Commission had specifically approved the extension of the two-year limits on the Coco Palms permits. Our question, of course, is why.
The developer was asked about potential flooding issues in future property development. He said, oddly, “I don’t want anyone to think we are just building huts.”
As a final matter, the commission said that “The 2022 report was received by the commission, and no further action is required on the report.” Other concerns are still being considered.
The plan for a new hotel is going strong from the developer’s perspective.
That comes in spite of all rationale and overwhelming opposition to going in that direction, including the pragmatic, non-oceanfront, heavily trafficked location that has changed so much. In addition, the site has tremendous significance in recent and ancient history and culture, which seems to call for something different from another Kauai hotel. In that regard, restoring the site to something other than a hotel, that can be enjoyed by all for now and in the future was mentioned by a community-based group working on a plan to restore the site.
Read the definitive Coco Palms article, which has more than 400 comments.
What condition is the resort in today?
It is more ugly than ever, with the decay appearing ever-worse and the rebar breaking through the concrete. It is an eyesore like no other on Kauai. And still, nothing has changed to any degree. There is no fence around the property. There is widespread graffiti and no sign of any work. We did a recent drive by, as seen below.
The foreclosure auction last year yielded no obvious changes.
Coco Palms was sold “as-is” at a scheduled foreclosure auction in July 2021. Here’s our understanding of that strange transaction. The $22,000,000 sale to Private Capital Group (PCG) was in the form of a credit on the original principal value of a loan by the prior owner/developer. It turns out that PCG was the prior lender. The owners defaulted on that debt. So in some sense, the owner may never have changed. The prior plan to rebuild Coco Palms as a 350-room resort dates back to 2015 and then changed hands again to the current group in 2019 due to prior mortgage default.
Is a cultural park still a possibility? Yes, it is.
The county and countless community organizations have expressed interest in the property becoming a cultural park. The developer indicated he believes it could be both a hotel and a cultural park, but wasn’t able to address most concerns expressed by the committee and those in attendance.
Love of Coco Palms.
This post-series has now been read more than a quarter-million times, which is a good indication of your love of and fascination with Coco Palms. We, too, enjoy reading your hundreds of comments depicting fond memories of Coco Palms and ongoing dreams for its future.
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Move the road and restore the property. Who wouldn’t want to stay at Coco Palms resort if restored to it’s previous glory. Just think of the revenue and jobs created!! What a beautiful destination for weddings.
Similar problem with stagnation on decisions on the beautiful restaurant at Hanalei Bay Resort. Languishing and falling into disrepair. There are few opportunities to experience such a beautiful vista when dining. Short sighted stubborness. Holding a grudge for what?
I was visiting your lovely isle from Oahu about a week ago and noticed some work being done on the site. Any update? Mahalo!
Hi Wendy.
As far as we know what you saw was road repair related equipment.
Aloha.
Quite the saga….all kinda sad
I read of “desecrating a sacred spot”, but one needs to clear away all that is there. It is an eyesore and becoming a living community…in not a good way.
A flood zone? Not a good place for a resort.
A community cultural park….sounds like a plan to me.
All in my opinion.
Would have been awesome to bring Her back to a lovely place again….but…not realistic in any way.
Aloha!
Hi Deb.
Thanks. Good to hear from you and get your input on Coco Palms.
Aloha.
Coco Palms will always be remembered for it’s physical beauty but, sadly, even I (after later moving and living nearly 50 years in Hawaii) originally overlooked the fact that what gave it that really special feel was the true Aloha spirit extended to the guests. I am not talking about the normal run of the mill politeness that all service workers are expected to extend. True Aloha spirit comes from the heart and once you have been touched by it you will never forget that overwhelming feeling.
That Kauai would even consider permitting another hotel while they seem to be doing everything they can to limit visitors and save the land seems very odd. Just tear CP down, and do a cultural center if it won’t flood. — Former Island Holidays employee.
Be aware of any company that will not disclose who the ownership is especially from Utah. This could be a shell company set up by the Church of Latter-day Saints. I do not mean any disrespect to the church, but who else from Utah has the funding to redevelop Coco Palms.
Excellant report by Beat of Hawaii.
l
Do you know about if hotel property fee simply owner (present or the so called”new buyer”) even has mentioned or Planning Commission has ever asked them about any actions they have taken to become lessee of the State (DNLR) land that makes up the coconut grove, the corner at Kuamoo and Kuhio and a portion that is SeaShell. Kauai County Property website says lessee is Coco Palm Ventures LLC (a former developer) with address in Honolulu . It also seems to show that back property taxes owed. Wonder if a new lessee will be reponsible to pay back taxes not paid by a former lessee or if County can take some action to collect from State.
HI Carl.
Great questions. We haven’t heard anything about the state land that’s part of it.
Aloha.
This is excellent coverage of the Planning Commission hearing today; however, the Planning Commission’s own rules require “substantial progress” be made within two years of the issuance of permits or the permits automatically lapse (not within the last two years). Permits were issued 3/10/2015. Under the rules, the permits lapsed in 2017. The Fifth Circuit Court, State of Hawaii, ruled in a similar case in 2020 that the Commissioners could not extend the time. The “lapsing of permits” is mandatory if no substantial progress was made within the first two years of the issuance of permits. While the County of Kauai appealed the Court’s decision, the decision has not been reversed, to date.
Aloha, Here We Go, Again,,,,
I don’t know how, I have no proof, no ideas but this is so fishy,,
First time the representative had been to Kaua’i? Give me a break. That right there should tell you something and the were not building huts here, even I, as only a 16 year houle resident, find that incredibly offensive! Huts might just be the way to go Mr Utah.
A question which nobody ever seems to want to answer: How much is the upfront and ongoing cost and who pays if this is turned into a cultural center ?
I certainly presented the same question in a way to provide some guidance in how much would it cost and who would be willing to pay. If the current owners want to provide funding for a project of a certain scope perhaps the best solution could be obtained with their assistance. Otherwise donors need to be found.
Don’t you think if donors for a project this size were available, they would already have been found ?
I hope Coco Palms can be restored closely to the way it was before Iniki. It was such a magnificent place that so many fondly remember today.
Too bad the minority members of the Council voted down the resolution for a Charter amendment for affordable housing funding. If citizens approved, then the funds to purchase the property may have been available to reimagine Coco Palms with some affordable housing and cultural center together.
Forgive me, but it seems to me the permitting process is just a game of delay, reapply, delay, reapply. And if the place is unsuitable for a hotel due to global climate change, then it certainly is for a cultural center. Furthermore, what did the prior owners do that allowed them to construct it? Communication and compromise then, should be as vital for now.
The Coco Palms could never realistically be replaced. In today’s world a hotel that small couldn’t make enough to satisfy the investors and a big newer resort type hotel couldn’t recreate the magic. It is a fond memory of what once was and I’m thankful I had the privilege to experience it in the 1960s. I was just a young child but it’s a place I have never forgotten. I think it would be the best tribute to Kauai and the loving memories of a tremendous landmark to develop a cultural center in it’s place. It would be amazing if the architects could design the new buildings along the lagoon in a similar style of the original structures
Thank you Beat of Hawaii for providing an update on the hearing about Coco Palms. One thing I don’t understand and wonder if you would be able to address is why the Kauai government is continuing to allow developers to extend and extend and extend the permits when there is are so many people against rebuilding. You are also right on that a hotel at that spot would not be all that desirable at all, particularly a luxury hotel that they claim to be building.
Hi AW.
We wonder the same thing ourselves. It just doesn’t add up.
Aloha.
Something to do with an upcoming election?
Making Coco Palms a historical or cultural site only may not be feasible if the County of Kauai or State of Hawaii would need to fund this effort. Donations from some of the Billionaires that are frequenting Kauai may be possible and should be investigated for a source of funding. Any plan must include the feasibility of securing the funding for the plan.
I truly hope they don’t open another hotel as if we need more I like the idea of a cultural center of some sort or something referring to the indigenous history
Hilo Beware! the same could happen with the Uncle Billy’s hotel on Banyan drive.
It seems like many people express their opinion that a hotel should Not be built on the Coco Palms site. It seem that developing it into a cultural site is one of the options that people feel is desirable, however, no one has come forward with a feasbile financial plan to make that happen. The current owner of the property seems to want to make it a hotel and a cultural site and they have the financial backing to make that happen. Instead of just saying no someone in leadership needs to come forward with a feasible plan for the site. That may be with or without the financial help of the current owner of the property.
Each of the previous owners/developers of the property have claimed they had the financial backing to complete the project, but time and again nothing had happened. I don’t know why we should expect this is any different.
That may be the case, but is there any expectation that the funding to buy the property and turn it into a park or cultural center will materialize? I think if the public can show a plan for having the funding required to make the cultural center plan happen then the arguments against the Coco Palms development will have the appropriate strength needed to prevail.
I join the many families who have visited the Coco Palms Hotel
from the 70s…..it was a Most Enjoyable week long visit with 6 of our Family…We recall
fondly the nightly event of lighting torches as the Words ” Over 100 Years Ago” were sounded along with the Conch Shell sound….Our children were in Awe of it all…
A Special Place that definitely should be Preserved in some Way to the delight and Benefit of All. Very Sad to see it in this state of Decay for years now….Surely there is
a way to Retain the Traditional Hawaiian Atmosphere that it conveyed to so many for so many years…….No Greed should be allowed to ruin this Property….Mahalo,
Don S
I absolutely agree with you!
The reality is that we live in a capitalist society that is largely based on the belief and affirmation of private ownership of land–and government support of that principle. So… what the “natives” want or think about who owns that land–or even what they think should be done with the land–is irrelevant. That ship has sailed. But there is a little thing called eminent domain that could potentially be used in a situation like this… where the gov’t condemns and “takes” the property (i.e. buys it) for the public good. The taxpayers of Kauai would just have to pony up fair market value–$22,000.000+–to compensate the owners. That’s a drop in the bucket… right?
How can anyone who has never been to Kauai be involved in the future of the Coco Palms?
It seems like the best solution might be for the locals to pool together enough money to buy the property. Then they could demolish the buildings and let the site go back to its original natural sacred setting, or build a cultural center, or whatever they want. Then they could restrict the access to locals only if they wanted, thereby reducing any traffic, congestion issues too.
Thanks for your interesting newsletters!
Hi Don.
Thanks. We appreciate your first comment, on the subject of Coco Palms.
Aloha.
It’s to bad it wasn’t restored to its original design. It could still be and it would take people back to a different time. Don’t build some big hotel.
A Layton Construction Executive is part owner and Layton Construction (same company recently locked out of both 1 Hotel and Timbers projects) is slated to be GC.
The Polynesian cultural center on Oahu comes to mind as a possibility.