The Hawaii County Leeward Planning Commission on Thursday will consider issuing a permit for the renovation of the Kona Seaside Shops found along Ali‘i Drive with a new restaurant, courtyard, two new kiosks and a large outdoor seating area complete with bar and entertainment spaces.

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The Hawaii County Leeward Planning Commission on Thursday will consider issuing a permit for the renovation of the Kona Seaside Shops found along Ali‘i Drive with a new restaurant, courtyard, two new kiosks and a large outdoor seating area complete with bar and entertainment spaces.

The estimated $5 million project calls for the demolition of three of the five existing structures on the pie-slice-shaped property located at 75-5663 Palani Road, currently occupied by anchor tenant Big Kahuna Beach Grill and the specialty coffee shop Ka‘u Coffee Roasters Cafe, as well as the eatery Journeys Cafe.

These stores are sandwiched between Quinn’s Almost by the Sea restaurant and the Kona Square open-air retail and office center, with the former Kona Seaside Hotel (now Pacific 19) and the King Kamehameha Kona Beach Hotel next door.

Other shops currently operating on the property include Soda Pop Art selling jewelry and homegoods made from recycled cans and Lilikoi Boutique, an active-wear clothing store.

The two buildings not slated for demolition will undergo additions and renovations, including the construction of a proposed new restaurant in one structure currently occupied by retail stores. A large outdoor seating and dining area of patio tables will inhabit an ADA-compliant courtyard bordered by ornamental hedges and shaded by a handful of palm trees.

Two newly built 200-square-foot open-sided kiosks will house either retail or food and beverage vendors.

Structures currently on the premises were built between 1971 and 1975, and except for a handful of small renovations have remained largely unchanged since. The property’s owner, Edmund C. Olson Trust No. 2, purchased it in July 2021 for $4.3 million.

In the project’s Special Management Area Use Permit application submitted to the commission, the applicant says the remodel will breathe new life into the old and in places dilapidated seaside boulevard.

“The project presents an opportunity for (the trust) to reinvest in and renovate the subject property, enhancing its appearance and function as an attractive and welcoming gateway to the Ali‘i Drive retail corridor,” the application reads.

This could create a chain reaction, it states, whereby other shops and restaurants in the neighborhood also get inspired to revamp.

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“We hope this project will instigate other property owners nearby to improve and renovate their properties,” it says. “All being under the guidance and parameters of the Kailua Village Design Commission should create, over time, a cohesive improvement in the Ali‘i Drive area.”

Paul Alston is a trustee and told the Tribune-Herald in an email that the property — and the larger area as well — is in need of a facelift.

“The Kona (Seaside) Shops were built over 40 years ago,” Alston said. “And like much of the development along Ali’i Drive, it has not aged well. We intend to refresh everything and create a welcoming space for guests with outside dining and a place to host entertainment.”

The renovated restaurants, he said, will draw people back to Kailua Village to drink, dine and socialize.

“We will provide a home for new food concepts that will attract both locals and visitors,” he said. “The new spaces and native plantings will be more welcoming than what exists today.”

Characterizing the area as the “gateway to Ali’i Drive,” he said its current state is “unattractive, dated and shabby.”

“Ali’i Drive is a major economic driver for the entire community,” he said. “We need to update that ‘brand.’”

He said the project is still in the permitting stage and no bids have been proposed, but conceded that the renovation costs will be “substantial.”

Nevertheless, he said it’s worth it in order to fulfill the vision of the trust’s namesake — late Hawaii businessman and philanthropist Edmund Olson — to create a welcoming entrance into Kailua Village.

“Mr. Olson acquired this property with the intention of creating an anchor for Ali‘i Drive,” he said. “We are pursuing his vision as fact as we can.”

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Email Stefan Verbano at [email protected].