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State moves closer to demolishing Uncle Billy's Hilo Bay Hotel

Uncle Billy’s Hilo Bay Hotel
Hawaiʻi Department of Land and Natural Resources
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Officers sweep rooms at the former Uncle Billy’s Hilo Bay Hotel in April 2021.

The state is moving forward with plans for the condemned Uncle Billy’s Hilo Bay Hotel.

The Department of Land and Natural Resources plans to release $1 million in special funds to finance plans and designs to demolish the condemned Banyan Drive property.

“The Uncle Billy’s property is a significant liability for the state as it currently poses a health and safety risk to the Hilo community," state Sen. Lorraine Inouye said.

She noted that the DLNR pays more than $9,000 a month for building security.

Drug dealers and homeless people have been known to loiter at the site. State law enforcement swept the property in April 2021.

The Hawaiʻi County Fire Department believes a fire in March was started by squatters.

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