State takes lead on Banyan Drive redevelopment in Hilo

News admin July 9, 2026 0 Comments

State takes lead on Banyan Drive redevelopment in Hilo

HONOLULU (HawaiiNewsNow) – A decades-long effort to revitalize Hilo’s Banyan Drive is moving forward after Gov. Josh Green signed legislation Wednesday giving the Hawaii Community Development Authority — a state agency that coordinates public- and private-sector community development — new authority over the area.

Senate Bill 2001 creates the Banyan Drive Community Development District, allowing HCDA to oversee future planning and redevelopment of the waterfront corridor.

“We want to revitalize Banyan Drive quickly so that there are local businesses and jobs created right there,” Green said during the bill signing.

For years, Banyan Drive has reflected both Hilo’s tourism history and its decline. Once home to bustling hotels and visitors, parts of the area have fallen into disrepair, with several aging and abandoned properties.

State Rep. Chris Todd, who once lived on Banyan Drive, said he witnessed that decline firsthand.

“Back in 2012, 2013, when I was finishing up college, I actually lived on Banyan Drive,” Todd said. He recalled a violent incident outside his apartment complex and said the area has changed dramatically over the years.

“I’m very hopeful that this will pave maybe a more robust way forward,” he said.

The redevelopment district includes about 63 acres of state-owned land on the Waiakea Peninsula, including the Nani Loa Golf Course and the former Country Club Hotel.

“We’re talking about a small area. We’re not talking about thousands and thousands of acres,” state Sen. Lorraine Inouye said. “We will be adding two properties, two hotels and a small commercial center.”

The state has already allocated $14 million to demolish the former Country Club Hotel while HCDA develops a long-term master plan.

HCDA Executive Director Craig Nakamoto said the planning process will rely heavily on community input.

“It’s not HCDA’s master plan. It’s not the legislators’ master plan. It’s the community’s master plan,” Nakamoto said. “It’s going to be informed by community voices, community thoughts.”

Inouye said planning work has already begun, with permits moving forward as officials work toward removing what she called one of the area’s biggest eyesores.

The Banyan Drive master plan is expected to be completed by mid-2027. Supporters say the goal is to create new economic opportunities while preserving the area’s cultural and historical significance.