Hilo’s Naniloa Resort may closeUPDATED 8:08 PM HST Sep 13, 2013Video Transcript
for Hilo's Naniloa Hotel. Good evening, I'm Yunji De Nies. And I'm Pamela Young in for Paula Akana.. This mark's the resort's final weekend ... The state says shutting it down equates to short term pain for long-term gain.. KITV4's Catherine Cruz was there for the decision that sealed its fate.. A decision by the state land board NOT to extend the lease to the bankrupt operator is what is triggering this late Friday afternoon scramble. - Tape two David Farmer 19:43- 19: 46 - Sad day, I think. It's a sad day for Hilo, it's a sad day for the state," David Farmer took over as Naniloa Resort's trustee four months ago. The hotel's distressed, payments are overdue.. but Farmer was hoping to buy time until of the year... By then, maybe one of the two interested buyers would be ready to take over. Mayor Billy Kenoi pleaded with the land board-- enough already. He came armed with pictures of a dilapidated tower with one working elevator. Kenoi talked about a swimming pool with green alage water that has been like that for not just weeks and months-- but years. Tape 1 Mayor Kenoi 49: 33- 49:42 -"How can you say anything but Shameful. Disgraceful. Deplorable. and if you go from the ocean standup paddling-- Worse." Kenoi pointed to a outside kitchen built when the restaurant was shutdown. Tape 1 Mayor Kenoi 46:56- 47:01 - "How? How dis when happen? This is one kitchen at one Volcano Resort? Who would take their family eat there? $300 dollars a night?State conventions? Who is coming back? The Mayor said East Hawaii deserves better. - tape 2 Bill Aila 100:58 - 100:06 "Rather than talk about what should have happened, and would have happened, we are in the process of what can happen in the next month or two to achieve what you want to achieve." After consulting with attorneys in executive session, the board voted unanimously NOT to extend the lease payment. - ROB 13:48 -13:55 -"I think this is the best course for us to move things and force things and along in the most expeditous manner to resolve the situation out there," - TAPE 2 David 17:30- 17:40 Without a lease and essentially not enough money to keep things going. I have no choice but to let everybody go because we are not going to have people work for free." Farmer, who cautioned the state about the chaos that would ensue, is now knee-deep in it. Now begins the scramble. It will be an intense weekend. There is a possibility of an emergency bankrupcy hearing Monday as the hotel tries to figure out what to do about the hotel guests and workers.