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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Keoli K says
This could be a win win win. Much like the SF Transit center in San Francisco, ala Facebook being right around the corner, this could be a similar build. Elevated hotel off the ground as to not disturb burial/uses for parking + hotel rooms at a restricted height with a roof top deck being pool/garden grounds.
wikipedia.org/wiki/Transbay_Transit_Center#/media/File:Salesforce_Park_and_bus_bridge,_seen_from_Salesforce_Tower.jpg
Bob says
Can’t build higher than a palm tree on Kauai, which is probably 2 hotel floors and grounds on 1st, ground floor.
David B says
Does this mean that the local tweakers will have to clear out, or are they still good for a few more years?
RIch says
Oahu has arboreta and parks that are home to rarer Hawaiian Flora and the habitat attracts Hawaiian birds. Something similar on Kauai with space to walk in peace and admire nature would be of great benefit on the East side where development has paid little attention to preserving the natural beauty of Kauai. We could even name it the Zuckerberg Arboretum if that helps secure the funding.
Dan D says
My wife and I spent our honeymoon their July 5, 1980, we were so enchanted with the resort we returned for our second honeymoon the year after. We loved the fire dances and were invited several times for cocktails. So many wonderful memories. My wife passed away last year but Coco Palms is always in my heart!
Wish I could return with my new lover!
Geo says
Coco Palms was a dump long before Hurricane Iniki did everyone a favor of tearing it to shreds. The scandalous part of this story has been the refusal of the County to condemn the property, bulldoze it and use the land to widen one of the most problematic traffic areas on the island. Instead, gutless bureaucrats and pols just let the place remain an eyesore and rot to pieces for decades.
The good news is the property will never get rebuilt as a hotel. Way too many land use and permitting issues – the existing structures are structurally unsafe and will have to be demolished (think Surfrider condo x 100x). A tsunami would make it a death trap – logjammed traffic would make it all but impossible to evacuate.
But it won’t stop greedy fools from trying to make a buck and string out this ongoing travesty for decades to come.
MJ H says
In the mid-1980’s when I was with Island Telephone we were asked to survey Coco Palms and quote replacement of the badly aged communication wiring on the site. Even then, before Iniki the concrete on the cable vaults was in bad shape. Ironically we all wanted to be a part of the rebirth back then, but it was not to be.
Rick P says
So sad to look at the condition of the Coco Palms. My wife and I have married there 33 yrs ago July 10, 1988. We have so many wonderful memories of the Coco Palms Resort and our ti,mes in Kauai. I hope to see it restored someday.
terry w. says
i look at this with much sadness, my dream would have been to visit this paradise island and this amazing resort, but alas this is not going to happen, i pray that zuck will fund this and give this land to the local people and to nature, restore the beauty that was once in the minds of so many british fans who may be one day walk the paths of the blue lagoon, and dream of the lighting ceremony that used to be, aloha.
sandy h says
the structural issues seem to replicate the Surfside Florida tragedy. hopefully the Native Hawaiians are not really occupying the property….
Skip S says
The current attitude towards tourists and tourism makes the building of any hotel totally unnecessary.
The focus now is to reduce visitor traffic by charging special fees only to visitors to even park at certain areas.
Kauai was once my favorite place to visit. Beautiful scenery, and wonderful people.
I miss that, but probably won’t return.
Nancy M says
It has been sad to see the continuing deterioration of Coco Palms over all these years and to hope for the restoration that will never come. Many of us have such fond memories of that place. I always enjoyed the torch-lighting ceremony and I loved those fabulous desserts!
A few years ago someone mentioned here that an overhead walkway might be a possibility for people to get to the beach as the traffic has gotten so bad along that stretch.
As for Mr. Zuckerberg, it would be kind of him to participate in this effort, whatever it turns out to be, but I don’t have much hope for that. He doesn’t appear to have even a tiny bit of the aloha that Bette Midler has.
Bill B says
The walkway over the freeway was considered years ago. Remodeling the restaurant was also considered. The county wants too much from developers, residents do not want anyone to own the property. Before Iniki, the hotel was on the way out. Even if zuckerberg were to purchase the property and gift it, the county would not be able to clean it up. Cost too high and complicated by ancient hawaiian folklore. That property will be a big sore on the island into the forseeable future.
James S says
Thank you for the most comprehensive article. Do you know if the auction has an upset price or minimum bid requirement?
Mahalo
Beat of Hawaii says
Hi James.
Thanks. No, not that we have heard.
Aloha.
DR says
I drive by the Coco palms at least twice a day on average. The last thing that was needed at that site with the highway the way it was is a hotel. Give it back to the people-A park or a cultural center. If you watch Blue Hawaii that’s how I dream the lagoon and property could look. Who knows how long this much-needed highway work will last but please, no hotel. Our housing shortage is critical but lets do something pono, not profitable.
Mary E says
Such fond memories of being married in the Coco Palms Chapel Feb. 1 1985 & afterwards visiting with Uncle Charlie Perriera at the zoo. Some years later after Iniki we dropped by to see if we could visit the chapel. There was a gentleman chatting with the driver of the “Movie” tour van. After they left we asked him if we could go in. What a surprise–it was Uncle Charlie holding his severance check as he and another fellow had been the last two employees taking care of the grounds. Kind person that he was (Kauaians have much aloha} he said “Yes, follow me” and took us in to the chapel. I understand he is an Island Treasure & is gone now, but he & the Coco Palms will remain always in our hearts. R. I. P.
Tiffany R says
It’s such an interesting phenomena that these stories are EVERYWHERE. I think it’s the energy- the magic of this place…. Yes, it was in Blue Lagoon , but there have been many places featured in movies- this place was so different- it truly was magical! I was here as a young child – my aunts wedding, my grandpa flew our whole family of 40 something plus over there and to this day- we still talk about it. I am one of hundreds of thousands w similar stories- I’ve been to so many places over the years, NO place has captured my heart like this. If only each of us could donate 1000 dollars to this place- but it collectively and give it back to the island. A park – forever and ever owned by the people? I’m traveling there on the 10 th and would love to walk it’s path… Aloha- xo
Charles F says
Zuckerberg has to date proven himself to be a ‘user and a taker’ of the island of Kauai and its community. Super rich users and takers should be treated with contempt and suspicion. No aloha and no kindness. Zuck should make a hefty and charitable donation to the community and expect nothing in return but stewardship from a foundation set up in his name to improve the quality of the island for the people.
Ron T says
Married my beautiful bride Becki at the Fern Grotto in 1984. We stayed at the Coco Palms and enjoyed all that it offered. Spent much time with Larry Rivera at the pool. Larry sang Love and Aloha to us at poolside on our departure. Truly Paradise.
Catherine H says
As they sing in “Frozen”… “Let it go! Let it go!”
Randy says
“Da plane, boss, da plane”, Farewell Coco Palms, I was actually in Oahu during Iniki in 1992, took a call from a good friend that morning asking what was I going to do, where was I going, maybe 0630, when he told me a Hurricane was coming and they were evacuating for higher ground from the Kahala area. Going downstairs, there was panic in the lobby as Guests were trying to get the last flights out @ 10:30 AM before the Airport closed, Kalakaua was all boarded up already and having only arrived Sunday on business, I opted to stay, as the Sea crossed Kalakaua, it also became apparent the storm was passing us, but headed for Kauai and Poipu and Lihui were devastated, the “Tunnell of Trees” taken off as if by a scythe. A year later, made a run to Kauai, still devastated and Coco Palms, as well as The Stouffer Waohai in Poipu totally devastated, truthfully, Coco Palms was already going through “Hard Times” it’s glory days already behind it, having decided on the Waohai instead of a run-down Coco Palms probably in ’90!
Skip S. says
Thanks for the update on Coco Palms. Worked for Island Holidays in the 1970s and 80s and was privileged to stay at Coco Palms many times. I think the idea that the property can’t succeed as a resort be a use it isn’t on the beach is mistaken. It was the most popular hotel we had and beach access doesn’t matter if something special is created. I’m guessing that the property will continue to be neglected for many more years before the county does anything. Maybe they’ll make it a a large parkingot where they can charge a fee for beach parking as they do in other Kauai locations.
Beat of Hawaii says
Hi Skip.
Thanks for your many comments. One of us may try to attend the auction just to see what’s next.
Aloha.
Rob L. says
We stayed in a bungalow in 1985. The clam shell sink, netting around the bed, the lava rock shower and bath, the lagoon, wedding chapel, Blue Hawaiians around the pool, the coconut grove out back, and especially the gibbons out back, with their “Whoop whoop” calls. Anyone remember the coconut pancakes at the open air restaurant? And Larry Riveria. BOH, does he still sing every Friday night in Koloa?
Beat of Hawaii says
Hi Rob.
No word on Larry performing in Koloa. Maybe someone else knows. Thanks for your nearly 100 comments to date!
Aloha.
kevin c says
Just turn it into the Lori Daybell memorial park. That’s what Kauai is famous for now. Her an5th hubby Chad had that old time religion,