The County of Hawaiʻi’s lease for Punaluʻu Black Sand Beach Park will end Saturday after negotiations between the county and landowner ended without an agreement.
Hawaiʻi County has leased the 6.8-acre site since at least 1954 from successive private landowners, according to a news release. The current lease was executed in 1998 for $1 million between then-owner SM Investments and the County of Hawaiʻi. The land is currently owned by Black Sand Beach LLC and managed by Xiaoyuan Liu.
Black Sand Beach LLC approached Hawaiʻi County in 2024 seeing new lease terms. The county proposed a 10-year lease with annual payments started at $159,300, followed by 3% annual increases. Black Sand Beach LLC terminated the existing lease on June 30. The parties extended the lease for two months to continue negotiations, but were unable to reach an agreement.
The county appraised the property through the Public Access, Open Space and Natural Resources Preservation Commission program and offered to buy the property for $1.46 million, but Black Sand Beach LLC declined to sell the property.
Mayor Kimo Alameda stated in a news release Thursday, “Throughout this process, we made every effort to find a resolution — from offering substantial lease payments to pursuing purchase of the property — and we know there will be many questions going forward. As this lease comes to an end, we will continue to coordinate across county departments and with other partners to minimize the disruption this will cause and address impacts on the community.”
According to the county website, the Punaluʻu Beach Sand Beach Park has a parking area, restrooms, a pavilion, a campground, grills and is ADA accessible. County-managed park services will end and the park facilities will revert to the landowner. The beach and coastline remain accessible to the public via a road at the northern end of the beach, according to Public Information Officer Tom Callis.
Callis said that the county did not decide to extend the lease for another 30 days because the park depends on the private water system, which is inoperable after Hurricane Lala in mid-August. The county has made “water spigots available for residents who rely on Black Sand Beach LLC’s private water system,” he notes, which is also “providing hot showers, charging stations, and services to meet essential needs at nearby locations.”
Black Sand Beach LLC had plans to develop 225 residential and vacation rentals at Punaluʻu Villages, but the project was stalled by foreclosure after Black Sand Beach LLC defaulted on a $3.4 million mortgage, the Honolulu Star-Advertiser reported in 2025.
A petition received 18,602 signatures opposing the development after residents voiced concerns that the project would impact the habitat of the Hawksbill Turtle, Hawaiian Monk Seal and Hawaiian Nene Geese, as well as put a strain on local resources.
Impact on tourism industry
A multitude of tour operators feature Punaluʻu Black Sand Beach Park on their itineraries, according to Scott Bier, owner and operator of The Volcano Van.
“It’s a real loss for both the Kaʻū community and for visitors,” Bier said. “Punaluʻu is more than a tourism stop; it’s an important gathering place for that side of the island.”
Bier said that he plans to shift his Summit to Shore tour to focus on Kīlauea and Hawaiʻi Volcanoes National Park, and later to include parts of the 2018 lower East Rift Zone flow field into the tour to show guests how dramatically Kīlauea reshaped the island in 2018.
Haley Lehman can be reached at haley@alohastatedaily.com.
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