Beginning later this month, Uncle Billy’s hotel will have a perimeter fence constructed around the entire property. The purpose of the fence is to physically secure the site from continued illegal occupation in addition to alleviating health and safety concerns. 

Last week, overgrown vegetation surrounding the front of the building was cleared, however the entire perimeter will be cleared in advance of fence installation. 

Following the state procurement process, the DLNR Land Division contracted Andrew’s Fencing LLC to build the fencing which should take one month to complete.  

While the Emergency Proclamation issued by Governor Green on July 18, removes and/or expedites some of the  regulatory processes associated with a project of this magnitude it does not exempt a demolition contractor from securing material disposal certificates and other regulatory permits. A demolisher has not been chosen yet through the established procurement process. Demolition of the building could begin by the end of the year. 

The proclamation, which expires on September 15, terms the situation as an “emergency situation” and and  can be extended for 60 days if necessary. Additionally, for any contracts that are entered into during the term of  the proclamation, it provides work can continue until completion even if after the effective period: “Notwithstanding the termination of a disaster emergency relief period, any contracts, agreements, procurements, programs, or employment of personnel entered into, started, amended, or continued by reason of the provisions of the proclamation relating to this emergency shall continue in full force and effect.” 

In the 2022 session, the legislature appropriated $13.5 million out of the DLNR Special Land and Development Fund (SLDF) for the demolition of the hotel. However, the SLDF does not have $13.5 million to pay for the demolition. In the 2023 session, the Legislature appropriated $8 million in reimbursable general obligation bond funds that DLNR will have to pay back over time with interest. DLNR is using the 2023 appropriation of $8 million to pay for the demolition under the emergency proclamation.

Once the property is demolished, cleaned up and restored to bare ground, DLNR will make recommendations to the Land Board,  in consultation with the community and stakeholders which will help decide the future use for the property.

This includes conducting an updated strategic assessment of the Banyan Drive area, including but not limited to feasibility, infrastructure, and market studies to facilitate redevelopment.  During its July 14 meeting, the Board of Land and Natural Resources (BLNR) authorized Chang to negotiate a Memorandum of Agreement with the Hawaii Community Development Authority to procure and manage a consultant for this project.

In addition to the demolition of Uncle Billy’s, another Banyan Drive priority is the renovation of the former Country Club Condominium Hotel. At its meeting on April 28, the BLNR authorized the DLNR to negotiate a development agreement for this project with Banyan Drive Management LLC.  Those negotiations are ongoing. 

DLNR Photo