|Remembering and Reviving the
Coco Palms Hotel
From Pacific Business News, Page A1, August 21, 2000:
Coco Palms renovation stalled
Plans to develop Coco Palms Resort on Kauai into a time-share/hotel development are stalled.
The buyer, California company Coco 1388 LLC, filed suit against seller Wailua Associates even before the deal was closed because of concerns over contaminated soil and the state's plan to realign Kuhio highway fronting the property.
he company plans to develop the resort into 232 two-bedroom time-share units, and 10 single-story cottages, which would be used as hotel suites.
"My client took the position that once we discovered there were problems we requested more time," says Jack Dwyer, attorney for the buyer. "When the seller would not give additional time to resolve the problem, the buyer filed the lawsuit."
Dwyer says the issues arose during the inspection or due-diligence period before the January closing date.
Dwyer says the developer signed a contract to purchase the resort for $10 million. But now the owners want more money for the property.
"Because of the delay, the seller would like to see an increase in the sales price and yet these problems were not caused by the buyer," says Dwyer. "So as you can see the buyer doesn't want to pay the increased amount."
Dwyer is not sure when the matter will be resolved but is optimistic it can be settled by negotiations and not through the court system.
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