(BIVN) – A significant step toward the revitalization of the Waiakea Peninsula is nearly complete, as the final phase of the demolition of the former Uncle Billy’s Hilo Bay Hotel is underway. 

The Hawaiʻi Department of Land and Natural Resources provided an update on the hotel demolition, saying that the second and final phase of the project started this week. 

From the Hawaiʻi DLNR:

Phase one involved the demolition and removal of all aboveground structures and was successfully completed in December 2024. This second phase will focus on comprehensive site preparation at the ground level and below. This includes the removal of soil impacted by pesticides, the extraction of underground utilities, surface grading of the entire site and the placing of fresh topsoil and grass.

photo courtesy Hawaiʻi DLNR

The DLNR Land Division awarded Isemoto Contracting Company with the general contract for this final phase of the project, with a total cost of $4.7 million.

The future use of the Uncle Billy’s Hotel site will be determined as part of the broader Waiakea Peninsula revitalization effort, being conducted by the Hawaiʻi Community Development Authority. The goal is to redevelop and enhance the Banyan Drive area while preserving the natural beauty and cultural significance of the region.