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Monday, March 12, 2001

Calif. developer
closer to Coco
Palms purchase

Jim Reed says he will
preserve portions of the
historic Kauai property

By Tim Ruel

A California developer is moving forward with his purchase of Kauai's historic Coco Palms Resort in Wailua, but has scaled back his plans to demolish the resort and convert it into a time-share.

Jim Reed said today he has agreed to buy the 396-room hotel from Wailua Associates, following a recent settlement of a 14-month lawsuit with the owners.

Reed, who received approval to redevelop the resort last year from the Kauai Planning Commission, has lowered the number of time-share units proposed for the site to 189 from 232 and boosted the number of hotel rooms to 150 from 20. Reed said he also will preserve the property's Coconut Palace and Queens Audience Hall, as well as the Kings Cottage.

The sale of the property had been set to close Jan. 1, but had been delayed by the suit, Reed said. Following the settlement, Reed said he is increasing his purchase price for the property to an undisclosed amount from the previous price of $10 million. Construction on the hotel could begin as early as September.

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