A familiar stretch of Ali‘i Drive is headed for a major facelift after the Leeward Planning Commission unanimously signed off on a roughly $5 million overhaul of the Kona Seaside Shops in downtown Kailua-Kona. The Special Management Area permit clears the way to demolish three of the complex’s five buildings, rebuild two, add a new restaurant, and install two open-sided kiosks and a landscaped courtyard with expanded outdoor seating. Supporters say the goal is to freshen up the busy beachfront corridor near Kailua Pier for both locals and visitors.
County panels approved the SMA permit in a 5-0 vote after months of review and a negotiated compromise over how parking requirements would be calculated, according to the Honolulu Star-Advertiser. The outlet reports the applicant pegs construction costs at about $5 million and plans to add bar and entertainment space to the new courtyard.
What the permit allows
The County Planning Department’s background report states the permit covers a 33,411-square-foot parcel and would result in about 11,918 square feet of rebuilt retail space and roughly 1,654 square feet of exterior seating. It authorizes demolition of three existing structures, additions and renovations to the two remaining buildings, and construction of two 200-square-foot open-sided kiosks along with ADA-compliant pathways, according to the County Planning Department. The report also spells out the revised gross floor area, seating, and landscape calculations that underpinned staff’s SMA recommendation.
Historic review clears a hoop
The State Historic Preservation Division reviewed the proposal and issued a "No Historic Properties Affected" determination on Dec. 29, 2025, reducing the likelihood of extra archaeological mitigation. That finding is recorded in the division’s determinations report and referenced in the county project packet. The project and the agency’s Opinion 106 for the renovation are listed in the State Historic Preservation Division file.
Design details and parking
Applicant filings show Building A will house the anchor restaurant and include a second-floor café, while an addendum corrects area totals and details the two new kiosks and expanded outdoor dining zones. The planning director ultimately accepted a compromise that bases required parking on the square footage of new development only, effectively grandfathering existing building area into the calculation. Those adjustments, along with the revised landscape plan, are documented in the project addendum and related materials filed with the County Planning Department.
Owners and reaction
The property is owned by the Edmund C. Olson Trust No. 2, which purchased the site in 2021. Agent John C. Cross thanked commissioners and said he looked forward to "brightening up" the Ali‘i Drive corridor. Local testimony leaned positive. Dean Au called the renovation "a bright light for the community and for the visitors," and Donna Noborikawa told planners she was glad the applicant and staff had worked out a solution, according to the Honolulu Star-Advertiser. The permit arrives as anchor tenant Big Kahuna Beach Grill remains closed for repairs after storm damage in March, a situation the owners say the broader overhaul is intended to help address.
Next steps
With the SMA permit in hand, the applicant still needs to secure building permits and work with county staff on construction phasing. Planning calendars and board packets will track those filings and any additional public comment. County materials indicate the project team will return to finalize permit details before any demolition or building starts, but a formal construction start date has not yet been announced.
