State releases $1 million for feasibility study, redevelopment planning of Waiākea Peninsula, Banyan Drive in Hilo

Hilo’s Waiākea Peninsula, home to iconic Banyan Drive, Liliʻuokalani Gardens, Reeds Bay Beach Park, and Coconut Island, is moving forward with long-awaited revitalization plans. On July 26, 2025, Hawaiʻi Gov. Josh Green released $1 million in state funding to begin a feasibility study and master redevelopment planning for the area.

This funding was secured initially in the 2024 legislative session and will be managed by the Hawaii Community Development Authority. The plan includes hiring a consultant, engaging the community in public meetings, and evaluating both development potential and infrastructure needs.

The release of funds comes after major clean-up efforts began in July 2023, when Gov. Green signed an emergency proclamation to secure and demolish the long-condemned Uncle Billy’s Hilo Bay Hotel. The second and final phase of demolition began in July 2025, with completion expected by January 2026.

Once a thriving cultural and tourism hub, parts of the peninsula have declined in recent years. Lawmakers and community leaders see this as a turning point, one that could restore Waiākea Peninsula as a cultural, recreational, and economic centerpiece for East Hawaii.

Source: Big Island Now, Tiffany DeMasters

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