HILO — The former Uncle Billy’s Hilo Bay Hotel property is changing hands following its closure last month.
HILO — The former Uncle Billy’s Hilo Bay Hotel property is changing hands following its closure last month.
The state Land Board on Friday voted to grant Tower Development Inc. a revocable permit for security and property management purposes of the shuttered hotel, which recently operated as Pagoda Hilo Bay Hotel.
Tower is the managing partner of WHR LLC, the owner of the Grand Naniloa Hotel. Ed Bushor, who leads Tower, says he intends to compete for a new lease to replace the former Uncle Billy’s with another hotel.
The revocable permit will be effective no earlier than Aug. 5 and does not allow for hotel operations.
The state Department of Land and Natural Resources hired a consultant to assess the cost of demolition, which could be the responsibility of the state or a new lessee. An auction for a new long-term lease is being considered.
A staff memo said Tower would receive rent credit for labor and material costs associated with building a perimeter security fence or mural around the property. Rent was set at $1,000 per month.