Major Expansion Planned for Kauai Lagoons Resort
The former Chris Hemmeter luxury Kauai Lagoons Resort is headed for its first major expansion since Hurricane Iniki ravaged the Lihue property in 1992, under an ambitious plan by local developer Kevin Showe.
 Kevin recently partnered with the Canada based company that in October bought two golf courses and surrounding undeveloped land at the resort, and proposes adding several hundred residential, hotel condominium and timeshare units projected to sell for more than $500 million.
Showe, who in 1998 partnered with fellow developer Jeff Stone to acquire and revitalize the mostly undeveloped Ko Olina Resort and Marina on Oahu, also plans to remodel one of two shuttered retail centers and convert an unused restaurant into an apartment hotel at Kauai Lagoons.
The plan revives long stalled expansion visions for the 800 acre resort and joins a trend of developers building million dollar homes and timeshare units on Hawaii sites approved for hotel use. Similar expansion initiatives at long stalled resort development projects have gathered strength recently at Princeville Resort on Kauai and at Ko Olina on Oahu.
Kauai Lagoons opened in 1987 with the ornate 840 room Westin Kauai hotel, a Jack Nicklaus designed golf course and wildlife populated islets surrounded by 40 acres of man made lagoons plied by wooden gondolas. A second Nicklaus golf course and two high end shopping centers also were developed, but Hemmeter ran into financing problems that nixed plans to build a second hotel, condominiums, timeshare units and a third golf course.
Japanese firm Shinwa Golf Group acquired the golf courses, retail centers and expansion sites for about $200 million in 1991, but its efforts to continue Hemmeter's grand development vision was ruined the next year by Hurricane Iniki, damage from which closed the hotel and retails centers and hurt golf operations.
The hotel reopened in 1995 after is was bought by Marriott International and converted to hotel and timeshare use, but Shinwa gave up on its planned expansion and was forced to sell its Hawaii assts last year to help reduce roughly $600 million in debts.
Canada based GolfBC acquired Shinwas's Kauai Lagoons property for about $17 million, according to property records. The British Columbia Company had not previously disclosed its plans, but last week partnered with Showe in a 50-50 venture known as Kauai Development LLC. The company has about 65 acres slated for redevelopment that would allow up to 750 visitor accommodation or residential units.
Showe said he is considering a mix, which could include timeshare, single family homes, condominiums and fractional ownership units. According to Showe, the Artisan's Landing retail complex, an eyesore, will be razed in the next two months. Fashion Landing, the other shuttered retail center, will be renovated and reopened.
Inn on the Cliffs, a former fine dining restaurant is to be converted into a 10 unit condominium, with condos for sale and for use as residences or hotel rentals. Despite past plans to build a third golf course on a 130 acre site, Showe said that idea will not be revived. "There are plenty of golf courses on Kauai", he said.
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