Kaua'i lawmakers want the state to consider reassigning privately leased state lands in Wailua for public use and access.
The parcels are connected to the dilapidated Coco Palms Resort. The property has been under scrutiny by county and state entities for years since it was destroyed by Hurricane ʻIniki in 1992.
Councilmember Felicia Cowden and Council Vice Chair KipuKai Kualiʻi co-introduced the non-binding resolution. Cowden said it targets three state parcels tied to private interests, which the resolution suggests would be better for public use.
Cowden said some of the land could be used for a public parking lot, potentially replacing one that has been eroded by the ocean.
"Then, the larger 14.83-acre piece in the middle, that (property) for the state to consider that for public use, or at least to be reconsidered for how it would be assigned," Cowden said.
In short, the Utah-based Reef Capital Partners currently owns the Coco Palms Resort area, some of it on private land and some leased state land. Reef Capital foreclosed on the property after former owners defaulted on loans.
"We've listened to the community and our elected leaders and we have learned that much of the opposition to restoring Coco Palms is driven by mistrust and skepticism stemming from 30 years of broken promises by previous owners," Reef Capital attorney Mauna Kea Trask said at the Wednesday meeting.
Trask said the owners opposed the resolution and said proper maintenance and development are ongoing.
"Unlike previous owners, Reef Capital has the financial strength and resources to complete the development of Coco Palms responsibly in a manner that balances the needs and concerns of the community," Trask said during an opening statement.
This resolution, which was deferred from a meeting in May, also targets parcels covered in the resort's famed coconut grove. Trask stated it costs around $400,000 to maintain the grove properly.
The state's Department of Land and Natural Resources opened a cross-department investigation into the property this spring. Among the alleged violations include failure to pay county real property taxes, cutting down 77 healthy palm trees without consent, no annual reports, and failure to get written approval for reassignment of the lease.
The investigation includes state Historic Preservation Division and the Office of Conservation and Coastal Lands.
The Board of Land and Natural Resources will be taking up the matter once the investigation concludes, BLNR Chair Dawn Chang reported to the council last month. This resolution, which passed, is meant to offer a council stance on those matters.
This document differs from calls last month from Chair Mel Rapozo for the county to pursue eminent domain on the private property.
"We received a ton of emails regarding eminent domain — that is not on the agenda, so I'm not gonna allow testimony on eminent domain," Rapozo said ahead of the item on Wednesday. "We're talking about a resolution of three parcels that the state controls that the introducers of the resolution would like to see turned back to the public for public use."
"So I'm just giving you a warning now: no discussion on the county's purchase of this land or discussions of eminent domain," Rapozo said.
At a May 10 meeting, Trask said owners would be willing to sell the property for $22 million, which was allegedly lent from a former pension fund for first responders and government employees. On Wednesday, he retracted that.
"But, I don't think that was a formal offer of sale was just a notification to the chair regarding the topic he brought up," Trask said.
Community and state officials have spoken out against the ongoing redevelopment of the resort, saying that a 300-plus-room hotel is not suitable for the flood-zone, traffic-prone area.
Recent contention over the history of the property and the significance of the area have plagued redevelopment over the years. Within the larger 46-acre Coco Palms property includes a culturally significant fishpond close to the heart of Kauaʻi's last queen, Deborah Kapule.
The council passed the resolution by a vote of 4-2, with members Billy DeCosta and Bernard Carvalho in opposition. Councilmember Addison Bulosan was excused.
