DLNR Seeks Interest for the Demolition of Existing Hotel & Construction of New Hotel

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Banyan Drive may see a new hotel as the Hawai‘i Department of Land and Natural Resources (DLNR), Land Division, has issued a Request for Interest (RFI) relating to the former Uncle Billy’s Hilo Bay Hotel site, more recently known as the Pagoda Hilo Bay Hotel, located in Hilo, Hawai‘i, on Tax Map Keys: (3) 2-1-005: 033, 034, 035 and 045 (Site). The total land area of the site is approximately 1.83 acres.

Uncle Billy’s Hilo Bay Hotel. Google Street View

The purpose of the RFI is to gauge whether there is interest among prospective developers in obtaining a long-term lease of the site for hotel-resort purposes that would include an obligation to conduct an environmental assessment (EA) or environmental impact statement (EIS) for the demolition of the existing structures on the site and construction of a new hotel thereon, secure the permitting and approvals needed for the demolition and new construction, complete the demolition, and construct a new hotel on the site.

The RFI additionally seeks to estimate the amount of rent credit that would induce a potential developer to incur all costs associated with the demolition of the existing structures and construction of a new hotel, including the cost of conducting the EA/EIS.

DLNR has conducted a number of studies regarding the site and neighboring areas, including:

  • Remaining Useful Life Determination for Uncle Billy’s Hilo Bay Hotel dated June 2014.
  • Tourism Market Study dated July 2014 – analyzes tourism industry and determines market demand for a new hotel in Hilo, Hawai‘i.
  • Banyan Drive Sea Level Rise Assessment Report dated July 2014 – assesses sea level rise effects on DLNR parcels located at Banyan Drive including the site.
  • Assessment Report prepared by Erskine Architects, Inc. dated June 29, 2016 – assesses existing conditions of three DLNR properties at Banyan Drive and evaluates potential buildable envelopes for the properties, including the Site.
  • Preliminary Demolition Assessment for the Former Pagoda Hilo Bay Hotel, Country Club Condominium/Hotel and Reeds Bay Hotel dated February 2018.

These studies are available on DLNR Land Division’s website.

For more information on the RFI including submission instructions and other relevant information, plevisit the website, or contact the Land Division at [email protected].

Submittals will be be accepted until 4 p.m. (HST) on Monday, April 30, 2018.



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