The first phase of renovations are underway on the former Hilo Memorial Hospital.
The work is part of the Hawai‘i County Office of Housing and Community Development's plan to establish a "coordinated resource hub" focused on housing stabilization, workforce readiness, behavioral health and other wrap-around services, the county said this week.
Phase one includes re-roofing the main structure, the safe removal of hazardous materials and the selective removal of invasive trees to prevent future damage to the foundation, a recent announcement from the county noted.
Later phases will address upgrades to electrical and mechanical systems, ADA improvements, interior renovations and exterior repairs, which the county says will "prepare the building for tenant improvements and eventual program occupancy."
"Reaching this point represents the culmination of years of work, planning, and coordination," Housing Administrator Kehaulani Costa told Aloha State Daily in an emailed response to questions. "The project is now moving into active construction and implementation to deliver a facility that will serve the community for generations."
OHCD has been working on the renovation of the former hospital since 2022, she says.
Diede Construction Inc. was the low bidder for the phase-one work, with a contract award of $8.03 million, according to the announcement. Costa says the contract was awarded on Jan. 29 and the notice to proceed was issued on March 16.
Some $16.6 million in federal grants — secured by U.S. Sens. Brian Schatz and Mazie Hirono — will support the first and future phases of the renovation.
"OHCD is actively advancing planning for the second phase using remaining funds after award of the Phase 1 contract," Costa says. "The county is also working with congressional and state partners to identify additional funding. A timeline for Phase 2 will be established once planning and funding are finalized."
Bids were initially sought for this first phase of renovations last summer. At that time, the county said work was expected to begin in the fall and take about six months.
Costa, however, said there were delays in the bid award process and the project required rebidding due to compliance review issues and delays verifying federal SAM registration during the federal government shutdown last fall, which led to bid disqualifications.
"The remaining bids were higher than expected, so the project was rebid, received comparable bids and the bids were awarded," she says. "The construction schedule was adjusted accordingly and reflects finalized contract scope, site conditions and required environmental protections, such as seasonal restrictions to avoid impacts to the ʻōpeʻapeʻa (Hawaiian hoary bat) during its birthing and pup-rearing period from June 1 to Sept. 15."
The work is expected to take about 12 months to complete.
Located at 34 Rainbow Dr. in Hilo, the former hospital sits on about 25 acres owned by the state and managed by Hawai‘i County through an executive order.
The three-story building was originally constructed in two phases a century ago — between 1922 and 1924 — with a third phase completed in 1929, according to a final environmental assessment for the renovation project published in April 2024.
It's comprised of three main structures. Ward A, or the mauka wing, was constructed in the first phase; a central administration building, or core, in the second; and Ward B, or the makai wing, in the third.
According to the EA, the initial design of the building came from architect Afong Heen, while subsequent architects, including C.W. Dickey (who helped design the Alexander & Baldwin building in Downtown Honolulu) "designed the rest of the hospital building in kind."
"The renovation of the old hospital is guided by ongoing master planning efforts to create a centralized campus for housing and supportive services," the announcement says. "The county has worked with community partners, service providers, and stakeholders to shape a vision that aligns facility design with identified gaps in housing, healthcare access and workforce support.
Currently, the site houses Keolahou, an emergency shelter and assessment center for single men; and Hale Kulike, a permanent supportive housing program, both of which are operated by nonprofit Hope Services Hawai‘i, the island's largest homeless services provider.
Costa says those programs are still operating and the county will "coordinate with the nonprofit operator as needed to ensure continuity of services during construction."
Find more information on the project here.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
