Funding has been allocated for the demolition of the derelict Uncle Billy’s Hilo Bay Hotel.
The Department of Land and Natural Resources said in April that it was seeking an estimated $13.5 million appropriation to demolish the hotel, shuttered in 2017 and abandoned ever since.
Hilo Rep. Chris Todd said Monday that the House’s budget bill includes that $13.5 million for the DLNR, but it will not come from tax revenues.
“That money will be coming from the Department’s Special Land Development Fund,” Todd said. “What the SLDF does is collect lease revenues from places like Banyan Drive and use them to fund staff and the department’s pet projects.”
Todd said the SLDF has an estimated balance of $33 million.
“The thinking was, if they’re going to generate funds through leases on the area, then they should use those funds to make improvements to the area instead of using taxpayer dollars,” Todd said.
That said, Todd said it remains to be seen whether the DLNR will conduct the demolition.
“Just because we make an appropriation doesn’t mean they have to spend it,” Todd said.