The demolition of the once renowned Uncle Billy’s Hilo Bay Hotel is approaching its conclusion. Originally built in the mid-1960s, the hotel was condemned by Hawai‘i County in 2017 due to public safety and health concerns. Since then, it has faced numerous arson incidents and issues with squatters, contributing to its deteriorated state.
Efforts by the DLNR Land Division to secure a lease for renovation or demolition were unsuccessful as agreements could not be reached with private developers. However, last year, Governor Josh Green issued an Emergency Proclamation that initiated Phase 1 of the demolition process. Phase 2 will focus on removing paved areas and any contaminated soil from the property.
DLNR Chair Dawn Chang recently visited the site alongside county and state officials. “I’d like to acknowledge the progress from a year ago, in addressing a public health and safety hazard, complaints, unauthorized occupants and significant community frustration. This could not have happened without the Governor’s Emergency Proclamation and the collaboration of the state and Hawai‘i County. Isemoto Contracting has stayed on schedule and within the state’s budget,” Chang stated.
The future use of this four-acre parcel remains undecided. Nathan Kurohara from Isemoto Contracting expressed hope that it would become a public space rather than a parking lot. The hotel's wooden lobby and restaurant structures were demolished weeks ago under an agreement requiring debris to be cut into pieces smaller than one foot for landfill disposal. Additionally, concrete waste will be crushed and recycled to minimize landfill use.
On Monday, demolition crews awaited final air clearance for asbestos removal while plastic still covered part of the hotel structure. Chang acknowledged community patience during this transition toward an undetermined future for the historic site.