LIHUE — Coco Palms developers have secured funding for demolition, representatives reported Monday.
“This morning, we received confirmation from escrow of the receipt of the funds necessary to acquire the property, as well as the funds for demolition and to prepare construction plans,”John Pang, a representative for Coco Palms Hui, LLC, told the Kauai County Planning Commission.
The construction plans are needed to obtain a building permit, Pang said.
Pang expects resort company to close with a Utah-based lending company, Private Capital, on Thursday.
“We need to make sure the documents are in order, and we get clearances from all parties,” Pang said. “Then the documents will be deposited into escrow Wednesday morning before 8 a.m., to be quartered Thursday night.”
Private Capital will foot the bill for demolition of the resort, which was destroyed during Hurricane Iniki. The final price of construction is almost $3.5 million.
Coco Palms officials want to breathe new life into the resort, a project that is estimated to be $23 million.
Once the closing papers are in order, demolition will start immediately, Pang added.
“At closing, the funds to Pacific Concrete to demolish will be paid,” he said.
At a special meeting, the Kauai County Planning Commission unanimously voted to defer the petition to modify or revoke Coco Palms Hui, LLC.’s permits to the May 24 meeting.
“I recommend we defer any action on the motion to intervene and the setting of the hearing date so we can verify that last transaction is secure,” said Michael Dahilig, planning director.
During the meeting Commissioner Wayne Katayama asked Coco Palms representatives about the timeline of the project.
“The current plan is to open the hotel during the first quarter of 2018,” Pang said.
The Planning Commission will meet on May 24 to get a status of the progress of the closure with Private Capital.