The Hawaii County Leeward Planning Commission on Thursday unanimously approved issuing a permit for the renovation of the Kona Seaside Shops found along Ali‘i Drive — a project that multiple commissioners described as a much-needed “uplift” for the economically struggling seaside boulevard.

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The Hawaii County Leeward Planning Commission on Thursday unanimously approved issuing a permit for the renovation of the Kona Seaside Shops found along Ali‘i Drive — a project that multiple commissioners described as a much-needed “uplift” for the economically struggling seaside boulevard.

In a 5-0 vote, the commission greenlit the estimated $5 million plan to demolish three of the five existing structures on the pie-slice-shaped property located at 75-5663 Palani Road. In their place, the now-approved permit calls for construction of a new restaurant, courtyard, two new kiosks and a large outdoor seating area complete with bar and entertainment spaces.

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

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 a courtyard bordered by ornamental hedges and shaded by a handful of palm trees.

Found across the street from Kailua Pier, Kona Seaside Shops 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.

The property is currently occupied by anchor tenant Big Kahuna Beach Grill, which sustained significant property damage during back-to-back Kona low storms in March, including interior flooding and damage to roofs and ceilings. Since then, it has been closed for extensive repairs.

Specialty coffee shop Ka‘u Coffee Roasters Cafe is the second main tenant, with a handful of other small stores operating out of the space, including a surf shop and health food restaurant.

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.

At Thursday’s meeting, Commission Chair Dean Au told John Cross — the applicant for the permit — that the renovation is a welcome investment poised to breathe new life into the village’s struggling economy.

“I support this project,” Au said. “I believe that Kailua-Kona Village needs a big uplift, and I appreciate you, Mr. Cross, by coming forward and making an effort with using your company’s time and resources to help make that place enjoyable.”

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He said Kona “used to be pumping” back in its heyday — a phrase in Hawaiian Pidgin meaning “highly active, energetic or running at peak performance” commonly used by surfers to describe a break having favorable, nonstop waves.

“You know when people get off that cruise ship — even when I drive by there to check out the surf, I always drive by that area, and it needs a big uplift,” he said. “It’ll be a bright light for the community and for the visitors.”

Vice Chair Donna Noborikawa expressed relief that the project had moved beyond last December’s deadlock, where the permit applicant and Planning Department were at odds over parking and loading zone requirements.

The department declined the applicant’s request for a variance, requiring the project have 46 parking spaces and two loading zone stalls based on a county Zoning Code minimum parking requirement of one stall per 300 square feet of commercial space.

They eventually reached a compromise where parking calculations would be based solely on the square footage of new development and not floor space already in use, essentially “grandfathering” in the existing buildings and allowing the applicant to satisfy parking requirements without resorting to using an off-site lot.

After negotiations, the planning director also determined that existing loading zone space was sufficient, and that an additional loading zone was unnecessary.

“Last year … I was kind of feeling that, you know, we were at an impasse,” Noborikawa said. “Planning wanted one thing, the applicant wanted another thing, and they seemed to be like butting heads, basically. Nobody wanted to give.

“I am really pleased with the solution that Planning and you, Mr. Cross, have come up with to make things work,” she added. “Like Chair Au was saying, we need to have more happening in that area — we need to uplift that area — and I am very pleased that you folks were able to come up with a solution.”

After the vote, Cross thanked the commission, saying he was looking forward to “brightening up the Ali‘i Drive corridor.”

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Email Stefan Verbano at [email protected].