Mayor Kenoi’s Statement On Naniloa Resort

Hawai’i County Mayor Billy Kenoi issued the following statement today regarding the Naniloa Volcanoes Resort:

“We strongly agree with the decision by the Board of Land and Natural Resources to enforce the terms of its lease with Hawai‘i Outdoor Tours, and we think that decision should stand.

The view from a Naniloa Balcony

The view from a Naniloa Balcony

“No special consideration should be given to lessee Hawai‘i Outdoor Tours or to First Citizens Bank & Trust, which is the lien holder in this case. This lessee failed to maintain the $1 million performance bond required by the lease. This lessee previously failed to stay current on the lease rent, and was issued notices of default. This lessee filed for bankruptcy protection a year ago, yet the lease specifically allows for termination if the lessee goes bankrupt.

“While all of this was going on, this lessee allowed the historic Naniloa property to dramatically deteriorate. That in itself is a violation of the lease, which requires that this important state asset be properly maintained. Obviously, that didn’t happen.

“Now the trustee and the bank are asking for special permission to continue to operate the Naniloa. There is no reason for the state or the court to agree to this. It is not in the best interest of our state or our community, and we hope the court will reject this proposal.

“It is time to cancel this lease and start over. It is time for us to start fresh with a new, responsible partner who will operate this facility properly. It is time for the restoration of the Naniloa to finally begin.”

Mayor Billy Kenoi

2 Responses

  1. What happened to the eastern medicine college on the top floor??

    • Aloha! After finding out the Naniloa landlord did not secure the proper permits to lease space to the college and clinic (Hawaii College of Oriental Medicince and the HICOM Natural Health Clinic, the college/clinic moved to 180 Kinoole Street, the Hilo Plaza Building, in downtown Hilo. More information at http://www.HICOM.edu

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