- Associated Press - Thursday, May 22, 2014

HILO, Hawaii (AP) - The Hilo Naniloa Hotel’s renovation this year will cost $20 million, its developer estimates.

Ed Bushor told the Hawaii Tribune-Herald (https://bit.ly/1t00UZ5) that he expects to secure a $15 million loan for the work in the next few weeks. He intends to submit building permits this week and hopes to get them approved within 60 days, he said.

The work should get started after July 1 and be finished by Jan. 1. That schedule is tighter than earlier plans.

“The end date is the same,” Bushor said. “We’re compressing it in the sense we were going to do the paint and roof way ahead of time.”

Bushor’s company, Tower Development, is a managing partner with WHR, LLC, which acquired the 383-room hotel through bankruptcy in December.

The hotel also needs to cover $2.1 million in bonds that the Department of Land and Natural Resources says the previous owners left hanging. The department controls the land the hotel leases.

The department says it is due $1 million for a performance bond intended to cover delinquent lease payments. WHR, LLC is current on the $500,000 annual lease.

The previous owner, Hawaii Outdoor Tours Inc., also left for Tower Development a $1,115,356 construction bond for renovations, according to the department.

Bushor said the first priority in resolving the default is to address building code violations.

“When you come out of bankruptcy, you have all these violations on the property that existed from the prior owner,” he said. “So, we’re curing those violations ourselves.”

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Information from: Hawaii Tribune-Herald, https://www.hawaiitribune-herald.com/


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