Hilo, Hawaiʻi – The second and final phase of the demolition of the former Uncle Billy’s Hilo Bay Hotel began this week, marking a significant step toward the revitalization of the Waiakea Peninsula. This phase focuses on comprehensive site preparation and is anticipated to be completed in January 2026.
Phase one of the project, which involved the demolition and removal of all aboveground structures, was successfully completed in December 2024. This current and final phase will concentrate on preparing the site at ground level and below. Work includes the removal of soil impacted by pesticides, the extraction of underground utilities, surface grading of the entire site, and the placement of fresh topsoil and grass.
The DLNR Land Division awarded the general contract for this final phase of the project to Isemoto Contracting Company. The total cost for this stage is $4.7 million.
The future use of the former Uncle Billy’s Hotel site will be determined as part of the broader Waiakea Peninsula revitalization effort. This larger initiative is being conducted by the Hawaiʻi Community Development Authority, with the overarching goal of redeveloping and enhancing the Banyan Drive area while preserving the natural beauty and cultural significance of the region.