The Department of Land and Natural Resources will allocate $1 million to plan the demolition of the former Uncle Billy’s Hilo Bay Hotel.
The DLNR announced Monday afternoon that it would use the funds to finance plans and designs for the demolition of the derelict building, which is on state leasehold land.
The building has been unused since 2017.
Although the DLNR solicited redevelopment proposals for the Uncle Billy’s property in 2020, the lone proposal it received was ultimately dismissed following concerns regarding that developer’s financial capabilities.
In April, the DLNR estimated that the demolition of the building would cost about $13.5 million.
State Sen. Lorraine Inouye said in a statement Monday that the building represents a significant health risk to the Hilo community and is a liability for the state.
“Many homeless and drug users and dealers loiter on the property while DLNR has had to pay more than $9,000 a month for security services,” Inouye said. “On March 4th, 2022, a fire broke out on the building’s premises that law enforcement believes was started by squatters.”
Inouye said the planning process for the eventual demolition will begin next year.