Foreign cash sought to reopen famed Kauai resort
LIHUE, Kauai (AP) — Developers trying to rebuild a Kauai resort made famous by Elvis Presley and ravaged by a hurricane say they hope to rely on foreign investments.
The Coco Palms Resort is the only major hotel that did not reopen after Hurricane Iniki in 1992. Built in 1953, the property became famous when Presley filmed his 1961 movie “Blue Hawaii” there.
Developer Coco Palms Hui LLC is seeking federal approval to take advantage of a program that provides green cards to foreign nationals who help grow the economy by investing in new business deals, principal Tyler Greene said.
He said it will cost about $125 million to rebuild, which includes buying the land from hotel owner Prudential Insurance and installing a photovoltaic system to power the resort.
“We initially reached out to local banks here, but typically, local banks here don’t want to fund a construction loan that is over $30 to $40 million,” Green said.
Some county officials are worried about the prospect of using foreign loans to rebuild the historic hotel.
“I guess I’m concerned about having people who don’t have a stake in the community, and I just don’t know how long the commitment will be and what kind of commitment it will be to the community,” Councilwoman JoAnn Yukimura said.
Hyatt Hotels Corp. and Coco Palms Hui announced in May a Hyatt affiliate entered into a management agreement for the resort. It would be called Coco Palms by Hyatt, Green said. Hyatt plans to contribute to rebuilding, he said.
Rules for posting comments
Comments posted below are from readers. In no way do they represent the view of Oahu Publishing Inc. or this newspaper. This is a public forum.
Comments may be monitored for inappropriate content but the newspaper is under no obligation to do so. Comment posters are solely responsible under the Communications Decency Act for comments posted on this Web site. Oahu Publishing Inc. is not liable for messages from third parties.
IP and email addresses of persons who post are not treated as confidential records and will be disclosed in response to valid legal process.
Do not post:
- Potentially libelous statements or damaging innuendo.
- Obscene, explicit, or racist language.
- Copyrighted materials of any sort without the express permission of the copyright holder.
- Personal attacks, insults or threats.
- The use of another person's real name to disguise your identity.
- Comments unrelated to the story.
If you believe that a commenter has not followed these guidelines, please click the FLAG icon below the comment.