One thing you can definitely say about Coco Palms is that it remains at the forefront of Kauai news and people’s minds. This week the saga continued with an odd foreclosure sale.
Coco Palms Sold on July 26.
A scheduled foreclosure auction took place at the Fifth Circuit Courthouse near Lihue Airport. Alas, there was only one bid, and there is a new owner, sort of, at least for now. The property was sold in “as-is” condition.
One commenter on Facebook said what many of us were thinking, “I was dreaming that one notorious billionaire from the north shore would buy it, tear down all the man-made structures and donate it for a cultural park and parking for Wailua beach.” (Margaret Goode).
Neal McManus added, “It seems that a team of multimillionaires and certain billionaires that enjoy the island could “pitch-in” and have the parcel restored, made into a multi-use Hawaiian cultural space/center for the Kauai community. The resultant development could be endowed in the same manner and intent that Duncan McBryde did with Kukuiolono with the county of Kauai.”
In the end, however, the company Private Capital Group paid $22 million for the land. The bid was actually a credit for the original principal value of a loan obtained by the prior developer. The new buyer was the lender for the previous owners who defaulted on their debt during the last of a string of failed efforts to rebuild the hotel. That plan, which would have turned Coco Palms into a 350 room resort, began in 2015 and then changed hands again in 2019 through a massive mortgage default.
Being the new owner in title, Private Capital Group can now move forward to try to sell it yet again. No one knows exactly what their next move will be. There is also an upcoming confirmation hearing at which other bids, were they to materialize, could be heard.
There is no place for a new Coco Palms Resort. So what about a park?
The county is moving in the direction of wanting the former resort to become a park.
Coco Palms would no longer be viable as a hotel for a myriad of reasons, as you’ll read below. Among them, the property is located on what has become a very noisy stretch of Kuhio Highway, with no beach access. In recent years, many hotels have been built that, while not Coco Palms, offer beachfront locations at prices that undermine any potential for profitability.
The idea of a park has been floated for many years. BOH editors’ friend and Kauai Council Member Felicia Cowden asked that Coco Palms be “set aside for a future community wilderness or cultural park. Those prime, historically significant lands should not be attached to the problematic private pieces to help move a distressed asset.”
We reached out to Felicia for this article, and she replied that she does not believe that the County has the financial resources to acquire the property. “Hopefully, the county will consider it; however, I don’t think we can afford it. A best-case would be a friendly buyer, and that is where I will focus my efforts.”
Ultra-popular Coco Palms of the past. Still Kauai’s most iconic resort ever.
Kauai Coco Palms Resort never ceases to amaze us with its enduring popularity. Nor does the fact that it remains an unexpectedly awful eyesore and safety hazard on the island after being largely destroyed nearly three decades ago during Hurricane Iniki.
This was where the rich and famous once stayed, and Elvis Presley’s Blue Hawaii was filmed. The property consists of 20 acres fronting the highway at Wailua Beach, combined with 15 acres of state-leased land.
This post series has now been read some quarter-million times, which is a good indication of your love of and fascination with Coco Palms. We, too, enjoy reading your hundreds of fascinating comments depicting fond memories of Coco Palms and ongoing dreams for its future.
Demolition rumors.
Earlier this month, we reported that several publications had indicated Coco Palms was set to be demolished. However, we were never unable to verify that, and the county indicated it was not aware of a demolition permit being issued.
All essential concrete structures failed.
The original building core was to be an integral part of future development. That, however, became impossible when the steel rebar within the buildings’ concrete corroded and failed as a result of exposure to ocean salt and moisture. The corroding steel cracked the concrete and spall due to the swelling and increased tensile load on the steel. That issue started on the upper floors, then expanded to affect the entire infrastructure.
More reasons why Coco Palms can never be a hotel again.
Kauai’s prior mayor JoAnn Yukimura said development permits “should have never been issued.” She bemoaned that Kauai has too many hotels as it already stands. “Removing the cloud of resort development from the property will enable the community to come together around a new vision for that site — a vision that could include a park and culture center that interprets the history of the place.”
Another BOH editors’ friend Allan Parachini jokingly wrote on his Facebook page during Covid about Coco Palms Resort: “I am so happy to hear today that Kauai County has officially designated a Quarantine Hotel for the duration of the COVID-19 pandemic…As you can see, all of the accommodations have plenty of fresh air.” As we said, “Elvis has left the building.”
Coco Palms current condition.
The last round of attempts disintegrated with multiple developers unable to make it work—all to the chagrin of visitors, locals, and the Kauai County government.
When driving by, you see enormous amounts of ugly, original concrete and steel, as in the image below. The developers had planned to use these pre-existing steel, and concrete structures as the base of the new resort before those plans were terminated by nature and finances. The iconic lagoon was also set to be restored, as is shown in the image depiction above.
Beat of Hawaii: Coco Palms sits largely unchanged, destroyed through hurricane, fraud, neglect, and to this day, ongoing controversy for over a quarter-century.
In 2016, a multi-million dollar selective-demolition project was completed. This included drywall and asbestos removal, electrical and mechanical repairs, renovations at the Lotus Restaurant, and bungalow building. It pretty much was stripped clean. And it has sat virtually untouched since then.
Could Zuckerberg still play a role?
Turned into a historic park or something similar via a gift to the county or otherwise, this could be a way for the island’s wealthiest to make a very favorable impact. Kauai is Zuckerberg’s island home. Who else might help out?
Another commentor about the sale offered this, “Sounds good. Too risky to do anything, lender playing money games, price is low enough for the state to buy it. Great work!” (Robert Gluckson)
Did you know these Coco Palms’ details?
1. A once planned connection to the Koa Kea Resort was dropped. The last developer was rumored to have been in discussions with the Meritage Collection about running the Coco Palms in addition to Koa Kea.
2. Reopening as a Hyatt property was also aborted. In 2014, the plan was for Coco Palms to reopen in 2020 with 273 rooms, 77 suites, 3 restaurants, a cultural center, 12k square feet of retail, and more. It was then to be part of the Hyatt Unbound Collection.
3. In 2017, a dispute arose when a group of Native Hawaiians claiming to be descendants of Kauai’s King Kaumuali’i began living on the property. A judge refused to remove them from Coco Palms while determining the rightful owners. Developers said, “The county recognizes us as the owner of the property.” That was affirmed by the court in 2018.
4. The land is considered ancient Hawaiian royal property, and disputes have been ongoing since the 1800s.
We welcome your comments.
Updated 7/28/21.
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Al I says
Aloha bro, there is a lot of things we want back but brother unfortunately we can’t get the past back I am like you I want Hawaii to be back like it was 60 years ago Mahalo my brother
Joyce R. says
My ancestors came over to Maui and Oahu in the late 1800s from Portugal. Portugal was a poor country with no jobs, and these brave people, along with many other immigrants from many Countries, such as the Philippines, Japan, China, and many others left their homes and families forever to come to the islands and begin again; to work, live, and raise families. My ancestors fell in love with their new home, but living and working and being beholding to the plantation owners (Pineapple and Sugar Cane) for very little money….money they would give back to the plantation by purchasing food and whatever else they needed at the plantation owned and operated store. Many lived in poverty, had large families, and could not afford to live anywhere else, as most never got their debts cleared by the plantation owners/investors. The work was backbreakingly hard, with long hours and corporal punishments dealt out by the foremens who worked for the plantation, but they loved the Islands and it’s people, as well as the idea of Aloha the islanders taught them. They intermarried with Hawaiians and other Nationalities who came there, most especially the Phillipinos and the Japanese. It became their home, as their children were born and raised there, as well as their children, and their children’s children, and so on down the line. It was certainly the only home most of their descendants had ever known. A couple to a few generations later, my parents were born in the islands (Maui), and myself and sisters and brothers were all born there as well.
Prior to their marriage, my father was drafted into the army after Pearl Harbor, and 3 years later, even though his former boss had promised him his job would be waiting for him when he came home, his boss gave the job to his own son instead.
My parents were married in the late 40s. After the war, jobs were scarce on Maui, and so my father and mother made the difficult and painful decision to move to the mainland and leave everything.
Liam G says
It’s a no win. Even if billionaires bought it to build cultural sanctuaries etc they’d have such a headache as they have seen others go thru. People would always find something to complain about.
Bob C says
I love this site, as I do the island of Kauai. I was married at the old Coco Palms Resort. Kauai is near and dear to my heart. However, the proposals as put forth in this article with all its theories, are silly, in my opinion. Who in their right mind is going to pay the new owner the $22 million plus? Particularly when the potential buyer already knows there is resistance to creating a hotel? Smart businessmen and women are wealthy because they properly invest or keep their money. On the other hand, since a lot of people, including present and past government leaders, want to make this a park, why not just initiate proceedings of eminent domain? The property is an eyesore, has no access to the beach, as you say and is now and has been for years, a nuisance. Just my thoughts….
Beat of Hawaii says
Hi Bob.
Thanks for your input on Coco Palms.
Aloha.
Bob S says
Coco Palms was a magical place. I’ve been watching diligently since Iniki for news about renovation. As a resident of Wailua Homesteads, I had a kama’aina tennis membership in 1987. Management offered this at very reasonable rates because players on the courts encouraged the guests to join in. The strategy worked. We all had a great time and would love to do it again.
MikeCaptKona T says
Stefan, mahalo for the beautiful memory and terrific suggestions.
My first visit to the Islands was in 2000, with my wife who was raised on Oahu but hadn’t returned since leaving in 1967. Kaua’i filled me with so much aloha that I teach my high school students forgotten Hawaiian language and appreciation for the beautiful culture.
I, too, hop the fence at Coco Palms every visit to Kaua’i and did so again August 12. The historic lure of all the magical memories posted on this site are felt on this sacred and historic ground. I have no suggestions for you, Kaua’i, as to what you should do with this hallowed property..not my place to do so. Walking through the rooms in 2004 was as eerie an experience as I have ever had..reminding me of Iniki’s power as Pele’s fire on Hawaii Island. My wife and I love Kaua’i and hope only the best for whatever decision is made. Aloha!
Skip S. says
Guess I’m puzzled by folks wanting Mark Zuckerberg to fix up land that is supposed to have great historic and cultural significance to Hawaiians. Want to call it Royal Facebook Park or Social Media Grove. Sure seems like a local group could be formed to make this happen with some real help (for a change) from the County government. Crowd funding from a local the thousands of Coco Palms fans could help too.
Gary L says
is there any possibility’s that the rental car inventory will be back to normal by February on Kauai? thanking you
Beat of Hawaii says
Hi Gary.
Yes, they appear to be pretty much back to normal by then. The new starting price point however is going to be close to $100.
Aloha.
Angelina F says
Try the app called TURO. So much better than renting from a big car rental company. Cheaper too.
Kauaidoug says
My fantasy addition to cultural park would be a movie studio! A place where local aspiring video/ filmographers could have access to top notch studio facilities. Such a place would be available to filmmakers who might want to use Kaua’i, as they have in the past, for location shooting but then could use this studio for interior shots and editing purposes.
Ron E says
I became familiar with Coco Palms during my first visit to Kauai in 1986. We visited our friend Hunter in Wailua Homesteads to surf. at We surfed great waves at Hanalei Bay with Joey Cabell and Jimmy Lucas!
Although we saw the resort every day, I did not learn about it’s connection to Elvis Presley and Blue Hawaii until I met local Larry Rivera at the Kauai Museum in 2016. He sang and talked story. Larry knew Elvis because he was in the movie playing ukelele when Elvis sang the Hawaiian Wedding Song cruising in canal! I’ll always remember those experiences – aloha.
Melanie A says
OMG! I was at the Coco Palms in 1986 as well. I walked the grounds and had (well shared my parents’ LOL) a drink with my parents in the Tiki lounge/bar. It was a real treat hearing about the history from my parents and the bar tender! Elvis was always a favorite of my mom’s. It would be wonderful to repurpose the property in some way just to preserve that old movie era!
Thanks so much for sharing your experiences and property updates!
Roy H says
Yes, I too was hoping Zuckerberg would get involved with the property. But I guess it’s just overly clouded.
Aloha Guys
Michael says
Zuckerberg only cares about Zuckerberg. Fantasy that he’d be altruistic.
Darrell D. says
On our honeymoon stay at Coco Palms in 1978, my wife declared that when she died she wants her ashes spread among the Royal Coco Pams. So, at her memorial service ( assuming she goes first), I’ll be wearing my favorite Aloha shirt with airline tickets in my pocket. It’s what she wants.
Mike W says
I was there in late 1950s We use to run around the palms and lagoon hoping coconuts would not hit us in the head.
Greg G says
Well maybe Mr Zuckerberg’s love of Kauai acreage could help out?
If he buys it and turns it over to the county maybe he can get a little tax credit or deduction for his Kindness to Kauai??
Mahalo!
Dot S. says
If this neglected property was located in my state, they would have taken it by eminent domain and turned it into a park or allow it to go back to nature with a little help by planting native trees and perennials.
I think it’s pretty funny anyone thinks Zuckerberg will donate anything. Some people are naturally generous, some acquire generosity because they recognize their own good fortune, some wish to leave a legacy, and some are inspired by competition (rocket ships anyone?). Maybe I’m wrong, but I don’t think Zuckerberg is a natural!
Lysa S says
Have been steadily visiting the islands since 1976, even back when the main roads in many parts were made of dirt. Charo had a (attempted) restaurant on the north shore and life then was slow and easy. I was engaged on the Wailua River on a Smith Bros. Boat – don’t laugh, and the boat staff made us all do a “wiki wiki” hula dance in celebration! Breakfast with macadamia coconut pancakes at Coco Palms the following morning, my husband fed the koi fish at the pond adjacent to the restaurant and leftovers were pocketed and fed to the caged monkeys that beckoned us through the cages with outstretched arms. The smell of flowers, rotting earth, the sound of Lappert’s ice cream churning freshly made tropical ice cream and the sounds of island birds that nested in the palms and hibiscus were everywhere. With traditional Hawaiian music flowing on the tropical breeze, it was no wonder that place was magical to every person that that walked through this place of sanctuary. We all closed our eyes, put it in our most treasured memory banks only to remember a time when the world was allowed to stand still.
I understand the sentiment that is attached to this very sacred ground and like others, agree that it should be kept as a park and wetlands for local island wildlife. I also think a small walk in an area dedicated as a museum tribute with pictures, shell laced chandeliers and other artifacts will be appreciated by both visitors and residents alike. Each year, approximately 10,000 people are married on these islands, they take with them memories and storytelling for generations.
It is said that ancestral spirits are still among these great lands, the fishermen, families, warriors and leaders, all are a part of this special place. Let’s hope those with opportunity are touched by this history and can restore these grasslands and park at Coco Palms with integrity and honor.
Tom B. says
Very well stated. Not sure what’s best for the Kauai residents or visitors for that matter, but would love to see the eyesore removed, renovated or made into a park. More parking for the beach, with access over to the beach would be great as well. For the good of all it would be nice to just do something. It’s been in this condition since the early 90’s and it’s time for Kauai goverment to get moving!
David M says
I stayed at the Coco Palms in 1974 on my first visit to Hawaii as a kid. It was amazing and a highlight of the trip. So sad to see it destroyed by the hurricane. Was hoping that it would be rebuilt, but sounds like it’s not in the cards. A cultural park seems like a great idea.
Skip S says
Thanks for the continuing reporting on Coco Palms.
Grace Guslander, long serving Manager of Coco Palms, worked to create a fantasy realization of what first time visitors both hoped and expected Kauai. She tried hard to honor the special history of the grounds and Royal culture while giving guests the memories that are so often recalled in comments here. Very few resorts in the world are able to claim the love and loyalty Grace instilled in the hearts of her guests. I’m sure she would be saddened and disappointed to see what has become of her beloved Coco Palms.
Beat of Hawaii says
Hi Skip.
True that. We would have to think she would be very pleased to see it turned into a cultural park.
Aloha.
Stefan says
Aloha-
Even now, 25 years since last laying my eyes on Coco Palms,my heart swells with love if I think of it for more more than a brief moment. Memories from very early childhood in the early 70’s all the way through to its shuttering. My family spent a week twice a year on Kauai and I have countless memories of the resort. I can actually remember my father telling me and my sister we were going down to the restaurant to watch some kind of a show, an uninterested 5 or 6 year old suddenly gripped by a solitary clap of thunder from a drum, then completely mesmerized by a raging, lonely fireball dancing between the palms, the hushed reverence of everyone present, and the mysterious aura that saturated everything until giving way in the morning to the property’s unpretentious yet lush natural beauty. I remember when I stopped asking for those miniature bamboo fishing rods because the fish weren’t smart enough to quit biting hooks, overeating at morning buffets, exploring the grounds and learning the hard way which coconuts were easiest to husk, my first of hundreds of scoops of Lappert’s, playing pool late at night there above the shops, but mostly as Maya Angelou famously observed, I remember how the place made me feel. It loved me as I loved it. It was palpable. It’s why so many here are expressing such strong emotion. My last visit there was not long after the hurricane. Already it must have been commonly known that, as my mom put it, it was one devastation too many. It was shuttered and deeply distressing to behold. I was just out of college and still unafraid of consequences and late at night I hopped the fence to see for myself the damage. A light mist fell from a thin veil of clouds that covered the entire night sky. Rather than block out the moonlight, the clouds eerily glowed, bathing everything in cool pale light and as I made my way through, I myself started to feel devastated. I knew already it would never be rebuilt. (I need to finish in another comment)
Stefan says
I crossed the lagoon and found myself back amongst the palm trees. Behind me sad, lonely sounds from the animals that were left in the zoo echoed the despair in my heart. Somehow they had survived the hurricane. There, in the middle of the palms, on a cold and wet night, under a sky that glowed cold and pale, and standing on what I already knew to be grounds sacred to those who were once one with the island, I had what I can only describe as a deeply spiritual experience. And it’s no wonder. The land was not designated sacred and then it became so. The people experienced it as such and then honored it. The nightly fire ceremony at the resort did not bring about the mysterious aura that lasted through the night. It emanated from the land itself. For that reason, the resort’s demise was inherent since it’s inception. It may have been the good heart and pure intentions of someone like Grace Guslander that was able to stave off the inevitable. I would not be surprised to find the property’s current state closely linked in time to her departure. Or the departure of someone else with equally good intentions who filled her role. Sadly, tragically, the resort’s time has passed, and like the world’s greatest miniature golf course that was just across Kuhio Hwy, it’s memory will fade. Nothing commercial should replace it. No corporation should profit from it. Not even the corporation of the County of Kauai. Build no community center that will devolve into a part-time event space. The Land should be returned to its original state, it should be honored, and it’s heritage should be handed down to those who have been separated from it for so long. Allow visitors to enjoy it’s natural beauty, but cordon off the sacred grounds. The area is small. Allow for a contemplative space where those who are descendants may reconnect. Kauai has always resisted commercialization, but eventually given in. Reclaim your birthright. And share it with us.
Aloha
Donna B. says
Beautifully said. Mahalo for sharing your memories.
Doris R. says
I had a Dream and want it back. The Magical Place, build of Wood, with bathroom sinks made with giant shells, I want it back that old Hawaii with its many Palms and the true loving spirit of Hawaii and not fake commercial imposters. I want to have back the vision of a Grace Guslander, Built it not for the tourists, but build it for us, the local people! Let’s make it our Shrine and make it possible through donations and collectionS,