Kailua-Kona's Parking Historical Controversy (1999-2002)

Kona Home Team (LUVA LLC) Lance Owens (RB-24133), 2024 Real Estate Expert - Hawaii Island (Kona Home Team (luva llc)) • April 4, 2025

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 
   REALTOR® / BROKER-IN-CHARGE • Residential homes, Condos, Land, Agricultural/ Equestrian/Large Acreage 

Hawaii Association of REALTORS® (HAR) 

    2025 President   2023/24 State RPAC Chair
    2023 HARLA Graduate 

National Association of REALTORS® (NAR) 

    2023-25 Director   2024-25 RPAC Participation Council   Safety Advisory Committee   Region 13 Leadership

NAR Designations
      
AWHD (At Home With Diversity) | PSA ( Pricing Strategy Advisor) 
West Hawaii Association of REALTORS® (WHAR)

   2023 REALTOR® of the Year   2018/2022 Preside


By Kona Home Team (LUVA LLC) Lance Owens (RB-24133), 2024 Real Estate Expert - Hawaii Island (Kona Home Team (luva llc)) April 24, 2025
Today’s Inman News headline reads:“Existing-home sales fall to slowest pace since 2009 amid rising costs.”That may be true nationally—but not here in North Kona.While the mainland sees pullbacks, our local data paints a different picture. From January through March 2025, both home and condo sales in North Kona are up—eclipsing 2024, 2009, and even 2008 numbers.πŸ“Š North Kona YTD Sales (Jan 1–Mar 31): 2008: 69 Homes | 47 Condos 2009: 42 Homes | 33 Condos 2024: 104 Homes | 67 Condos 2025: 107 Homes | 82 Condos This isn’t just a rebound—it’s sustained confidence. Buyers are still buying. Sellers are still selling. And the market is still moving.It’s a powerful reminder that real estate is local. National headlines don’t always reflect what’s happening in our neighborhoods, our communities, or right here on the Big Island.Want the real story—not the national spin? Talk to someone who’s lived and worked it.With 21 years of boots-on-the-ground experience in the North Kona market, I’ve seen every shift, surge, and slowdown (even volcano related) . Let’s talk about what’s really happening—and how it affects your next move.Aloha,Lance Owens RB-24133  808.936.8383 LUVA Real Estate | 75-240 Nani Kailua #8, Kailua Kona, HI 96740        REALTOR® / BROKER-IN-CHARGE • Residential homes, Condos, Land, Agricultural/ Equestrian/Large Acreage Hawaii Association of REALTORS® (HAR)      2025 President | 2023/24 State RPAC Chair     2023 HARLA Graduate National Association of REALTORS® (NAR)      2023-25 Director | 2024-25 RPAC Participation Council | Safety Advisory Committee | Region 13 Leadership NAR Designations       AWHD (At Home With Diversity) | PSA ( Pricing Strategy Advisor) West Hawaii Association of REALTORS® (WHAR)     2023 REALTOR® of the Year | 2018/2022 Preside
By Kona Home Team (LUVA LLC) Lance Owens (RB-24133), 2024 Real Estate Expert - Hawaii Island (Kona Home Team (luva llc)) April 14, 2025
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