No More Extensions for Naniloa, Land Board Says
The Board of Land and Natural Resources today voted not to extend the deadlines for overdue payments owed to the state by the Naniloa Volcanoes Resort.
Meeting in Honolulu, the board declined to give the resort more time to pay the semi-annual lease payment of $250,000 that was due on Aug. 1.
That was at least the sixth time that Hawaii Outdoor Tours, a company owned by Ken Fujiyama, failed to make timely lease payments since it assumed the lease on the hotel and nine-hole golf course in 2006.
Board members also declined to give Fujiyama additional time to pay the $500,000 required to bring the lease-mandated performance bond to its full level of $1 million.
Failure to make timely payments or to fulfill the bond requirements could be grounds for the cancellation of the 65-year lease.
Board members today also decided not to revoke the remaining portion of the $5 million construction bond Fujiyama posted in 2006 to ensure that improvements to the resort were completed as spelled out in the lease, despite the fact that not all of the required work has been done.
Over the past year the Naniloa has been in financial turmoil that includes foreclosure followed by a bankruptcy filing.