Survey commissioned by Coco Palms Hotel developer leaves out key questions

Months after the developer of the Coco Palms Hotel announced majority support for the resort’s redevelopment on Kaua’i, new information reveals that the marketing research company hired by the developer did not disclose the survey’s full results. 

Marketing consulting company SMS Hawai’i was hired by the communications firm working for Utah-based developer Reef Capital Partners to conduct the survey, which polled 1,100 registered voters on the island between November and December of 2023. 

Kaua’i Now obtained a copy of the survey from Gary Hooser, a former state senator and former Kauaʻi County Council member, who was one of the recipients. The survey consisted of 25 questions on topics about a range of issues including the economy, cost of living, Kekaha landfill, tourism and overall state of the island. 

Three questions in the survey asked about Coco Palms, but only the responses to the final question were included in the published public opinion report. 

The first question about Coco Palms: “Turning to community issues, new owners of the Coco Palms are planning to restore the property. Do you support or oppose the rebuilding of Coco Palms?”

Residents were given the following options: strongly support, somewhat support, somewhat oppose, strongly oppose or don’t know. 

The second question, which was also omitted, was a follow-up: “And why do you say that?” It asked for a written response. 

The survey’s final Coco Palms’ question, which was used for the firm’s published results, asked: “If Coco Palms can only either be restored or left in its current condition, which of those two options would you prefer?”

Respondents were allowed to restore the property, keep it in its current condition, or say they do not know. 

The results of that last question found 61% of people voted to restore the hotel, 24% said they wanted it to remain in its current condition, and 15% said they donʻt know.

Kaua’i Now recently asked Shane Peters, the communications adviser for Reef Capital Partners, for the full results of the survey — and specifically, the first question relating to Coco Palms. 

Peters said in an email response earlier this week that it had been cut from the final analysis because it was “redundant or confusing.” 

“There were far fewer respondents on the question you’ve cited,” he said. “Given this, that question was omitted from the final analysis as it indicates it may have confused many survey participants.” He confirmed question 13 was also omitted for the same reason.

In a follow-up email on Friday afternoon, Peters declined to provide the response rate of the omitted Coco Palms question. “We do not disclose data that is not included in the report,” he wrote.

Hooser, who opposes the hotel, was highly critical of the survey and the decision to exclude the question in a post on his blog.

“Why wasn’t the community polling response to this question referenced or revealed? The answer of course is because the Utah developers don’t want you to know how the community really feels about their project,” he wrote. 

The survey was first debated at a Board of Land and Natural Resources hearing in April. Reef Capital and I Ola Wailuanui, a nonprofit group aiming to stop the development, were contending for property rights to a small piece of state-owned land adjacent to the resort – which ultimately went to the developers. 

Reef Capital attorneys Mauna Kea Trask and Cal Chipchase told the board they could answer the question of whether or not the Kaua’i community supports the redevelopment, presenting the poll as proof that there is “a more than majority support for the restoration of Coco Palms today.” 

At the meeting, Fern Holland, a board member with I Ola Wailuanui and current candidate for Kaua’i County Council, challenged the attorneys’ poll showing 61% of respondents voted for the property to be restored. 

“What does restoration mean? And they only gave restoration or leave it as is. And I think nobody wants to leave it,” Holland said at the time. 

Instead of a hotel, I Ola Wailuanui aims for the site to be restored as a Hawaiian cultural center and agricultural park.

In a December 2023 Board of Land and Natural Resources meeting, Holland had said I Ola Wailuanui had $300,000 in pledges for purchases for a historic restoration of the site, and that they were working with financial institutions and angel donors to find more than $10 million.

Last week, Teri Tico, a legal consultant with I Ola Wailuanui, also claimed the group had been promised up to $10 million at one point. 

“I don’t know that we could come up with the number they want,” she said of their attempt to purchase the property from Reef Capital. “But depending on their financial circumstances, we might be able to work something out.”

Tico was also critical of the survey, saying it was “skewed” and “ridiculous.” “No one in their right mind wants it (the hotel),” Tico said. A 2021 Change.org petition started by the nonprofit group has nearly 15,000 signatures opposing the hotel.

Earlier this week, Peters responded to some of the criticism of the community survey, saying the results show “it’s clear the vast majority of voters prefer to see Coco Palms restored and unfortunately, opponents may not like that response.”

He stated there was no scientific or objective basis to question the poll’s methodology or results. 

“As a scientific poll, researchers have an obligation to avoid questions on unrealistic or hypothetical options such as buying Coco Palms for a park without any funding,” he continued. 

He said the survey’s ultimate objective was to identify and tackle the most important issues facing the island, such as cost of living.

“We shouldn’t need a poll to tell us that is more important than Coco Palms,” he wrote.

Kaua’i Now reached out to the marketing firm SMS Hawai’i directly to request the full survey results. However, a phone representative said she could not provide any information, and SMS did not respond to an email request.

Bridget Hammerquist, the president of Friends of Maha’ulepu, another nonprofit group against the development, also contacted SMS and had been denied the results.

“Their reputation as a legit survey operation, I think, is truly at issue,” Hammerquist said of SMS.

In another email, Peters noted he was aware that Kaua’i Now had contacted SMS, but he stated that his responses should provide more than enough information.

Peters maintains that the new Coco Palms Hotel, estimated to cost $400 million, will be completed in 2026. Demolition of the dilapidated structures has been ongoing since March 2024, and Peters said construction has been ongoing throughout the restoration process. 

“The project remains on track for completion at the end of 2026. While we can’t accommodate interviews at this time, we will be sure to provide you with updates as key milestones are reached on the project,” Peters wrote.