Kailua-Kona's Parking Historical Controversy (1999-2002)
Does this sound familiar?
Today, parking woes are once again a hot topic in Kailua-Kona. But this isn’t the first time the community has rallied over parking issues. Back in the late 1990s and early 2000s, a major controversy erupted when Coconut Grove Marketplace, located along Ali'i Drive in downtown Kona, introduced paid parking in a town where free parking had been the norm. The reaction from the community was swift, passionate, and deeply memorable.
Paid Parking Arrives in Downtown Kona
Coconut Grove Marketplace, originally developed around 1998 by Anekona LLC, opened with new shops and restaurants along Ali'i Drive. By 1999-2001, management had hired Diamond Parking Services, a private company, to oversee parking enforcement. For the first time in recent memory, drivers had to pay to park in the heart of Kailua Village.
The rates, while modest by big city standards, shocked locals who were used to free parking. Diamond Parking strictly enforced the new parking rules. Failure to pay could result in fines around $40–50, often issued via private "tickets" that looked official but were really invoices.
Community Backlash
The response was immediate and overwhelmingly negative.
Residents, businesses, and visitors all pushed back. Letters to the editor of West Hawaii Today and testimony at public meetings captured the outrage. Business owners publicly warned that paid parking could drive customers away and severely hurt the downtown economy (West Hawaii Today, 2001).
Visitors also voiced their frustrations. One tourist recounted, "I watched a number of tourists drive in, read the parking sign, talk among themselves, and drive right back out" (West Hawaii Today, 2001). Others shared stories of getting hit with $45 fines after simply grabbing a quick meal or shopping for souvenirs, with one letter noting, "Diamond Parking is issuing tickets to hundreds of cars without proper signage or clear warnings" (West Hawaii Today, 2001).
Local businesses saw an immediate downturn. Many owners reported fewer locals shopping and more negative feedback from visitors. Some residents simply chose not to visit downtown anymore, saying parking stress ruined the easygoing spirit that had made Kona special.
Outcome
By 2002, after roughly a year or two of community pressure, the paid parking at Coconut Grove Marketplace was quietly discontinued. The pay stations were removed, enforcement signs came down, and parking once again became free. It was a clear win for community advocacy and a reminder that in a place like Kona, changes that affect locals and visitors alike need broad public support.
Reflection
Today, as Kona again grapples with parking challenges, it's worth remembering that these issues are not new. The Coconut Grove incident from 1999–2002 serves as an important historical lesson in balancing development needs with community values — and the importance of listening to the people who call Kona home.
At the same time, we should recognize that property rights and free markets often correct themselves over time. When businesses listen to their customers — and when the community stays engaged — the system finds a way to balance access, fairness, and private ownership. Just as it did more than 20 years ago.
Sources: This article is based on historical online information, public records, news archives, and community recollections. Specific quotes referenced from West Hawaii Today archives, 2001. If you have corrections or additional details to share, please reach out and let us know. We welcome your input to keep our local history accurate.
Aloha and Mahalo.
Posted by:
Lance Owens RB-24133
808.936.8383
LUVA Real Estate | 75-240 Nani Kailua #8, Kailua Kona, HI 96740
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