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Developer forecloses on Big Island property near Punaluʻu, pausing resort plans

Punaluʻu Beach Park on Hawaiʻi Island.
Kelsey Hiraishi
A controversial proposal for development near Punaluʻu Beach Park sparked overwhelming opposition from the community, while some longtime Kaʻū families saw it as an opportunity for jobs and economic investment in the community.

A developer is foreclosing on a large property near Punaluʻu Bay on Hawaiʻi Island, stalling plans for a luxury resort.

Punaluʻu is an important feeding and nesting spot for the endangered turtle. It also has several Native Hawaiian cultural sites.

Black Sand Beach LLC had plans to build vacation units on its property inland from the bay.

Community members testified against the proposal last year when the developer sought a permit from the Windward Planning Commission to build near the coast. The Center for Biological Diversity intervened in opposition to the development.

A screenshot of the project area map from the Special Management Area Use Permit Application from Black Sand Beach, LLC.
Hawaiʻi County
A screenshot of the project area map from the Special Management Area Use Permit Application from Black Sand Beach LLC.

Black Sand Beach defaulted on its mortgage before the Windward Planning Commission ruled on its request for a permit.

The property will now go up for sale at public auction.

Maxx Phillips with the Center for Biological Diversity said that given Punaluʻu’s ecological and cultural significance, the area should be under some form of community stewardship, like a land trust.

She added that small-scale economic activities in the area may be appropriate, as long as they "benefit local families, rather than offshore investors."

A prior developer had built a small condo complex and golf course in the area, but that project was also scrapped.

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