Hawaiʻi County, Black Sand Beach LLC reach tentative agreement for Punaluʻu Black Sand Beach Park

Story updated at 6:32 p.m. Oct. 13, 2026, with additional information.

Hawaiʻi County Mayor Kimo Alameda reached a tentative agreement with Black Sand Beach LLC for the preservation of Punaluʻu Black Sand Beach Park in Kaʻū.

Direct talks between Alameda and the company resulted in terms for sale of the 6.8-acre site, now owned by Black Sand Beach LLC and previously maintained and operated as a park by the county through a lease.

The agreement is subject to finalization by the county and company.

“After a couple years of mostly working through attorneys, the landowner and I met in person at Punaluʻu so that we could find a resolution that works for everyone,” Alameda said. “As a result of these direct conversations, we reached a compromise that preserves Punaluʻu Black Sand Beach Park for future generations while honoring the landowner’s own interests and concerns.”

Hawaiʻi County would purchase the property through its Public Access, Open Space and Natural Resources Preservation Commission program for the assessed value of $1.46 million under the agreement, ensuring the park remains open to the public in perpetuity.

The county also agrees to take steps to reduce impacts of park and beach traffic on portions of Black Sand Beach LLC-owned Nīnole Loop Road, maintaining about a quarter-mile section of private roadway connecting the park to the county-owned part of the road, with the landowner guaranteeing public access on that segment.

“Protecting Punaluʻu requires both parties — the county and landowner — to work together, and I look forward to continuing to build this partnership for the benefit of our community,” Alameda said.

The park — located on the south side of the beach and including parking, pavilions, bathrooms and campgrounds — was leased by the county since at least 1954 from private landowners to provide public recreational opportunities and shoreline access.

It closed after the county’s lease ended Aug. 29. It will remain closed until the purchase of the property is completed, which is anticipated to take several months, or until a temporary lease agreement is reached in the meantime.

Black Sand Beach LLC owner Eva Liu bought the private utility company Punalu‘u Water and Sanitation as part of her company’s plans for a proposed development called Punalu‘u Village, which called for 225 residential and short-stay units, a village and wellness center, rehabilitated golf course and tennis facilities, dedicated conservation area for a portion of the coastline, as well as extensive infrastructure upgrades.

Part of the project would have included $10 million to update the water and wastewater systems serving about 100 households in the Punalu‘u area of Kaʻū and Punalu‘u Black Sand Beach Park.

Liu in early 2025, however, ceased further financial support for the private water and wastewater company, leaving it without operating funds, because of opposition to the proposed development. Instead, she applied to the Hawai‘i Public Utilities Commission for water and wastewater rate increases.

Rates were established 47 years ago for the private utility firm — and donʻt appear to have increased since.

The system was designed to accommodate 3,000 households as part of a planned Punalu‘u land development in the 1960s, but it now serves fewer than 100 customers. That means each customer would be responsible for a significantly higher share of the system’s operating costs.

Additional funds raised from rate increases would have been used to pay for rising operational expenses and fund repairs and maintenance to the aging infrastructure originally constructed in the 1970s.

The private utility wasn’t looking to profit from the rate increases. Officials said it was about surviving and keeping services running and reliable.

Following more than 2 hours of in-person testimony during a public hearing in March 2025, members of the state’s Public Utilities Commission opted to seek additional written testimony, delaying a final decision about the rate increase request.

Since then, a Hawaiʻi circuit court approved an order of foreclosure against Black Sand Beach LLC after the company defaulted on a $3.4 million mortgage for property where proposed Punaluʻu Village would have been located, sending it to public auction and stopping development plans, which have sustained opposition from the public from their beginning.

It was also discovered that the lease agreement between the county and Black Sand Beach LLC for Punalu‘u Black Sand Beach Park was set to end June 30 this year, blocking public access to the park for the first time since 1954.

The county and property owner were able to work out a 2-month extension of the lease through the end of August while discussions regarding the park’s future continued, including the county negotiating for solutions such as purchasing the park the Public Access, Open Space and Natural Resources Preservation program.

Negotiations continued following the end of August deadline; however, without an agreement in place before, the park was forced to close.

No final decision about the water and wastewater rate increases has been made by the Public Utilities Commission, and two Kaʻū condos became ghost towns in August after Hurricane Lala damaged already beleaguered private utility firm Punalu‘u Water and Sanitation, severing drinking water and sanitation services to its about 100 customers.

The state utilities commission is hosting a public meeting at 6 p.m. Oct. 19 at Pāhala Community Center to address the urgent concerns about service disruptions affecting Punaluʻu Water and Sanitation customers.

The private utility also will discuss its current and long-term plans to restore service and customers will have the opportunity to provide feedback during the meeting.

All impacted customers are encouraged to attend and share their experiences as well as submit written comments.

Written comments should reference Docket No. 2025-0167 and can be submitted:

• Online: Public Utilities Commission website.
• By email: puc@hawaii.gov.
• Via regular mail: Hawaiʻi Public Utilities Commission, 465 S. King St., #103, Honolulu, HI 96813.

News reporter Nathan Christophel contributed to this post.