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  From Pacific Business News, Monday, July 4, 1994:

Coco Palms to be razed; rebuild hinges on insurance
By Jacob Kamhis
Pacific Business News

The legendary Coco Palms Resort on Kauai will be torn down, but what will be rebuilt is still undetermined. as the property is mired in litigation between the resort owner and its insurer.

The owner, San Francisco-based Wailua Associates, contends it is committed to rebuilding on the landmark property. site of Elvis Presley's marriage to Joan Blackman in the movie "Blue Hawaii."

The 400-room hotel was severely damaged in September 1992 when Hurricane Iniki swept across the Garden Isle.

Rebuilding is the only option. according to Lawrence Chan, the hotel owner's representative.

Wailua Associates filed suit in First Circuit Court in late May against Aetna Casualty and Surety Co. because of the insurer's "slow response" to an $18 million property damage claim. Chan said.

Following a court decision, the owner and insurer are selecting appraisers, who will select a third appraiser, and two out of thrce will make the final decision on the insurance claim.

The resort will have to be torn down, but how it will be rebuilt depends on the final determination of the insurance claim.

"The sooner we can get this resolved, the earlier we can draw up our plans," Chan said.

The owner's intention is to maintain the resort's Hawaiian appeal.

"We want to keep a traditional Hawaiian look," he said.

However, until the outcome of the case, the owners won't know whether they can rebuild the hotel with 300 rooms or 400 rooms, for example. And the number of rooms will have an impact on the new design of the property.

It will-be six months before Wailua Associates knows what and when it can rebuild on the Coco Palms Resort property. said a resort spokesman.

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