Hawaiʻi County’s Lease for Punaluʻu Black Sand Beach Park to End on Aug. 29
Hawaiʻi County’s Lease for Punaluʻu Black Sand Beach Park to End on Aug. 29
The County of Hawaiʻi’s lease for Punaluʻu Black Sand Beach Park will end on Aug. 29 after negotiations with the landowner, Black Sand Beach, LLC, concluded without an agreement. After that date, County-managed park services will cease, and the park facilities and improvements will revert to the landowner.
“We know how important Punalu‘u Black Sand Beach Park is to Ka‘ū and the entire island,” said Mayor Kimo Alameda. “During negotiations with the landowner, we made multiple good faith offers that would protect the public interest but unfortunately were unable to reach a solution that is acceptable to the community. As a steward of public shoreline access, the County remains committed to doing everything within the law to preserve Punaluʻu for current and future generations.”
Since at least 1954, the County has leased the 6.8-acre site from successive private landowners to provide recreational opportunities and shoreline access for residents and visitors. The current lease was executed in 1998 for $1 between SM Investments and the County.
In 2024, the current landowner, Black Sand Beach, LLC, approached the County seeking new lease terms, including changes to the lease rent and duration of the agreement.
In order to protect community access to the beach park, make necessary park improvements, and maintain good stewardship of public funds, the County proposed a 10-year lease with annual payments starting at $159,300, followed by 3% annual increases. The landowner declined the County’s offer and chose to terminate the existing lease agreement as of June 30, 2026.
The parties subsequently agreed to extend the lease for two months to provide additional time to negotiate a potential agreement. During this period, the County conducted an appraisal for a proposed purchase of the property through its Public Access, Open Space, and Natural Resources Preservation Commission (PONC) program. Following the appraisal, however, the landowner declined to sell the property to the County through the PONC program.
Purchases through PONC require a willing seller and the County can’t offer more than the maximum purchase price established by the appraisal.
“Throughout this process, we made every effort to find a resolution — from offering substantial lease payments to pursuing purchase of the property — and we know there will be many questions going forward,” Mayor Alameda said. “As this lease comes to an end, we will continue to coordinate across County departments and with other partners to minimize the disruption this will cause and address impacts on the community.”
###
