The days of Pagoda Hilo Bay Hotel — formerly known as Uncle Billy’s Hilo Bay Hotel — are coming to an end.
The state Land Board voted Friday to extend the Banyan Drive hotel’s revocable permit rent-free until July 14. By that date, the hotel will be required to shut down.
“Recognizing this building was at the end of its useful life and out of an abundance of caution, we are taking these steps now to close this chapter and prepare for a new phase of revitalization of Banyan Drive,” board chairwoman Suzanne Case said in a statement.
Additionally, the board voted to issue a “request for interest” regarding a new long-term lease for the property, which could result in a new hotel being built.
At least one party expressed interest.
Ed Bushor, owner of Tower Development, said he will seek to build a 100- to 125-room hotel there in partnership with Hilton.
Tower is the managing partner of the Grand Naniloa Hotel, also a DoubleTree by Hilton brand hotel.
The Pagoda hotel could be closed sooner if Hawaii County officials find health or safety issues during an inspection Tuesday.
Mayor Harry Kim, in a letter delivered by Managing Director Wil Okabe at the Friday meeting, requested that a new three-year lease, another option before the board, not be issued because of health and safety concerns. He said he favored seeking a new long-term lease for the property.
“It would be a disservice to our residents to not take positive actions towards promptly demolishing the former Uncle Billy’s hotel complex and exploring those opportunity that would bring about a revitalization of this property,” Kim wrote.
The hotel was built and founded by William Kimi Jr., better known as “Uncle Billy,” in the 1960s. Kimi died last year.
Honolulu businessman Peter Savio took over the hotel with a month-to-month revocable permit in 2016. He couldn’t be immediately reached for comment.
Email Tom Callis at tcallis@hawaiitribune-herald.com.
