The on-again and off-again project to revive Kauai’s historic, but the languishing icon is nearing a critical juncture. But is it too late? Some say the Kauai Coco Palms Resort may not be salvageable anymore.
Refresher
The storied Coco Palms Hotel was made famous by Blue Hawaii starring Elvis Presley and other movies of the 50s. But, decades later, in 1992, Hurricane Iniki made direct landfall on Kauai and severely damaged the resort. It’s been closed ever since and has been through numerous failed attempts to reopen it. This latest one, however, could very well be the last.
Current Status
The last time we heard about the Coco Palms Resort was over a year ago when the developer defaulted on its loan. Well, today, that issues continues to haunt the project. You see, last year, the project’s lender, Utah-based Private Capital Group, tried to foreclose on the property. Naturally, that triggered a lawsuit on Kauai, which is due to be decided upon this week.
The issue? It appears that Private Capital Group isn’t actually a lender at all – they’re a mortgage servicing company. And, as such, they don’t have the legal authority to foreclose on the property, claims the lawsuit. If the court sides with the servicing company, an auction for the property could occur in about six months. If not, the decision will likely be appealed, which could add another three years of litigation.
But what do these timelines have to do with the ability to revive the iconic resort or not? Decay.
Coco Palms May Not Be Salvageable
Ron Agor, who has been an architect on at least four of the Coco Palms revitalization projects, says that the buildings are in bad shape. Specifically, the concrete frames of the building are deteriorating quickly, exposing rusting rebar on critical support columns. And, as you can imagine, this creates structural integrity issues.
According to Agor, the buildings are still salvageable – for now. But, they may not be for long. In fact, Agor thinks even six months may be too long to wait.
Management Company Still On-Board
The Honolulu Civil Beat, which published this latest update, says that there is still some hope. And that hope is based on the fact that the resort’s future management company is still on-board.
As you’ll recall, the revitalized resort is under contract to become a Hyatt Unbound Collection property. And, for its part, Hyatt says it still considers this deal to be valid.
That’s very optimistic, in my opinion, especially since the current developer can’t afford to pay its bills. Yes, Agor has hope that yet another buyer or investor will be found soon, but I’m not so sure.
Kauai Coco Palms Resort May Not Be Salvageable, Final Thoughts
Honestly, I’m beginning to think that, indeed, this project will never be successful. That the Coco Palms will eventually come down, and that the site will end up being repurposed for something other than a hotel. After all, would younger generations even be interested in staying here? Most have probably never even heard of the movie Blue Hawaii and probably only vaguely know who Elvis is.