The Board of Port Commissioners approved both a $16.5 million loan proposal for the Kona Kai Hotel on Shelter Island, and planned improvements to the Harbor Island West Resort at this week's meeting.
Plans for the 129-room Kona Kai include the addition of 41 new guestrooms, restaurant renovation, upgrades to the spa and fitness center, a new two-story marina building, a second pool and deck, and additional parking.
The developer and current owner of the Kona Kai leasehold is a partnership of Washington state-based Nobel House & Resorts.
The commissioners also gave final approval to extend the lease and reduce the number of slips to facilitate other construction at the Harbor Island West Marina at 2040 Harbor Island Drive.
With nine years remaining on its 42-year lease, HIW Associates plans to negotiate an extension in order to spend about $20 million to upgrade the Harbor Island West and reduce the number of slips from 620 to 603, provide an 8-foot-wide public promenade and deck, and generally upgrade the marina's facilities.