State hits Coco Palms developers with cease-and-desist order for unpermitted clearing

The Utah-based developers behind the planned demolition of Coco Palms Resort on Kaua‘i have been slapped with a cease-and-desist order.

The Hawai‘i Department of Land and Natural Resourcesʻ Office of Conservation and Coastal Lands issued a Notice of Alleged Violation and Order earlier this month.

The order said that there was evidence showing machinery was used to clear trees and vegetation, and to grub and grade on the Coco Palms property, without a permit. The property is in the Land Use Conservation District Kapaʻa in Kawaihau.

“[T]he Board of Land and Natural Resources (Board) may subject you to fines of not more than $15,000.00 per violation in addition to administrative costs and costs associated with land or habitat restoration, or both, if required,” said the letter, signed by Dawn Chang, Chairperson of the Board of Land and Natural Resources.

“Should you fail to immediately cease such activity after written or verbal notification from the department, willful violation may incur an additional fine of up to $15,000.00 per day per violation for each day in which the violation persists.”

The future of the Coco Palms property has been in question for decades, after the resort – once a world-famous destination known for its Hollywood clientele, which included Elvis Presley – was destroyed by Hurricane Iniki in 1992.

The property’s current owners, Reef Capital Partners, recently shared its plans to soon demolish Coco Palms’ remains to make way for a new 350-room hotel.

Reef Capital Partners’ announcement came months after its architect stated the developers did not intend to remove the derelict buildings, seemingly incurring the ire of County of Kaua‘i Planning Director Kaʻāina Hull.

The hotel plans are opposed by local Native Hawaiian-led group I Ola Wailuanui, which wants to secure stewardship of the site noted for its rich Hawaiian history.