WAILUA — A rumor circulating on social media and coconut wireless started running rampant around 10 p.m. Wednesday, carrying with it varied reports that Coco Palms developer Tyler Greene had died.
One comment on Thursday morning on a Kauai community group page read, “Hearing that Tyler Greene of Coco Palms LLC is dead. Can someone please confirm?”
The extent of the rumors led to around 30 calls to Greene’s partner, Chad Waters, of their Honolulu-based private company GreeneWaters.
When reached by TGI Thursday, Waters laughed it off. Greene is alive and well, he said.
“The savior of Coco Palms has risen from the dead,” Waters said, referring to his partner’s alleged death. “Coco Palms is not dead yet, either.”
The exact source of the rumor has not been determined, but Waters remained tight-lipped on just exactly what the former managers of Coco Palms Hui LLC, a Deleware limited-liability company, have in mind in reference to Coco Palms not being dead.
The Alpine, Utah-based Stillwater Equity Partners announced March 25 they had replaced Greene and Waters as the managers of the CPH. CPH currently owns the once-prestigious location, and now SEP will manage the current hotel ruins after Greene and Waters defaulted on an $11.2 million loan from a Utah-based private loan provider.
SEP announced in a press release March 25 they are “currently seeking a buyer or partner with hotel experience that can contribute the capital and resources needed to make Coco Palms an iconic hotel as it once was. SEP has engaged Colliers International to market the project domestically and
internationally.”
Cleanup is currently being done at the site.
SEP is considering whether to initiate a foreclosure action against GreeneWaters, according to the press release.
According to Kevin Aucello of Pacific Hotel Investment, which was hired in addition to Colliers International to market the property, Coco Palms was recently appraised for more than $40 million. The County of Kauai lists three parcels CPH owns at market value, consisting of one parcel of 18.88 acres at $3.9 million, the second consisting of 12.63 acres listed at $12.7 million, and the third consisting of 0.20 acres for $757,700 at the site of the former Seashell Restaurant on Wailua Beach.
The county lists two parcels that were acquired in 2016 as the 7.95-acre parcel and the 0.20-acre parcel for a total of $9.85 million. The county lists the 12.3-acre parcel as being acquired in 2006 for $12.3 million.
The recent appraisal was conducted through a request by Colliers International as part of their marketing strategy to sell the iconic property. Colliers International is a Toronto-based global real estate and investment management company with operations in 68 countries.
Colliers’ listing of Coco Palms on their website does not have an asking price but gives a summary description of the property as having a lot size of 47.94 acres.
Part of the summary description for Coco Palms, 4-241 Kuhio Highway in Wailua, reads, “Since 2016, the new owners have obtained the entitlements and permits necessary for the redevelopment of the 350-room hotel along with restaurants, lounges, swimming pools, wedding venues and a spa. The concrete foundations and frames of the main hotel buildings remain allowing for expedited and less costly redevelopment.”
The property is listed as having fully-entitled development land, prime Kauai location, strengthening tourism market, strong brand affiliation (Hyatt’s Unbound Collection), extremely high barrier to entry — no competitive properties are approved or planned and infrastructure and utilities are all on site.
CPH announced in 2013 their plans to take on the renovation of the property that was damaged in 1992 by Hurricane Iniki. In 2014, CPH signed on with Hyatt Hotels Corporation to head up the management of the hotel once it was restored, which is still planned to be a part of the corporation’s Hyatt Unbound Collection.
•••
Ryan Collins, county reporter, can be reached at 245-0424 or rcollins@thegardenisland.com.
Development of that site will DESTROY the east side with un imanageable traffic
Coco Palms can never be what it once was. The glory days are long gone and people need to realize this. I am nostalgic for certain places also, but people need to move on. It’s a little selfish to push for the rebuild of a resort on that property because of what once was. Kaua’i is a different place now and doesn’t need another resort, especially on the east side. The location is terrible because it will be right on top of a four lane highway, across from a mostly unsafe beach and at a hub of major traffic congestion.
Put a fork in it. Time for a park.
The county needs to step up and turn this area into a cultural park A place people could have baby luaus etc. we need more parks not more resorts
This property should be converted to a cultural park. We don’t need any more resorts. Especially with traffic already bad in that area. Imagine an area for baby luaus etc.
I have visited Kauai 3 times since 2014. My favorite Island by far. I imagine a lot has changed since 1992 and from my perspective as a tourist I would hope the site would be converted to some sort of public space. The road system is overloaded as it is and the traffic from a new resort would be even worse. So much so that I would just go to Princeville and stay there and not visit the rest of the Island.