Land use debate intensifies as major rezoning effort moves forward in Hawaii

Big changes may be coming to Lanai

A quiet island in Hawaii may look a little different if a new land-use petition moves forward on Lanai. The proposal comes from Lanai Resorts LLC, doing business as Pūlama Lāna‘i, the company tied to billionaire Larry Ellison’s ownership and management interests on the island.

The petition asks the Hawaii Land Use Commission to reclassify about 170 acres from agricultural and rural districts to urban designation.

If approved, the change could support expanded resort-related uses, park space, ranch facilities, and new guest accommodations near Sensei Lanai, a Four Seasons Resort.

How Ellison shaped Lanai

In 2012, Oracle co-founder Larry Ellison bought most of Lanai from businessman David Murdock. The purchase gave him control of nearly the entire island, making him one of the most influential private landowners in Hawaii.

Since then, investments have focused on luxury resorts, wellness tourism, and upgrades to local infrastructure.

These projects have changed parts of the island while keeping Lanai’s small population and quiet lifestyle at the center of ongoing development discussions across Hawaii’s tourism landscape and future planning.

Rezoning plan covers 170 acres

Lanai Resorts LLC recently submitted a petition asking the Hawaii Land Use Commission to reclassify about 170 acres of land.

The request includes shifting areas from agricultural and rural districts into urban designation to support future resort and community development plans on the island.

Officials will review the filing and decide if the land changes align with state planning goals. The outcome could determine how much of the island can be developed in the coming years, especially around resort zones and unused recreational spaces.

From agricultural and rural land to possible urban use

The proposal would reclassify about 95.844 acres from the State Agricultural District and about 74.381 acres from the State Rural District to the State Urban District.

The petition says the change is intended to align the land-use designation with the Lanai Community Plan, existing resort-related and ranch uses, proposed county zoning, and updates to the Koele Project District.

Supporters say the change would make land-use rules more consistent with existing and planned uses, while past Lanai development proposals have drawn concerns about water use, resort expansion, and the island’s small-town character.

New villas and spa hale plans

If approved, the plan could allow up to 9 new villas at Sensei Lanai, a Four Seasons Resort, including 6 one-bedroom villas, 2 two-bedroom villas, and 1 four-bedroom villa.

The proposal also includes about 5 new spa hale, which would add capacity for wellness treatments at the resort.

Existing Sensei Lanai spa hale are private, 1,000-square-foot spaces with features such as ofuro bathtubs, steam, indoor and outdoor showers, massage tables, and private plunge pools.

Old golf course would become resort park space

A major part of the proposal involves turning about 83.28 acres of a former golf course into park space. The golf course closed in 2017, and the petition says the area is now used as walking trails for resort guests and Lanai Adventure Park guests.

The petition says the future plan is to use the former golf course area as a park, which may include a sculpture garden, and that the additional park space would be available for guests as part of their stay at the resorts.

The filing also says more than 90% of the project area would remain vegetated or in pasture, helping limit impervious surfaces.

Sensei Lanai wellness focus

Sensei Lanai, a Four Seasons Resort, is central to the proposed hotel expansion. The resort describes its experience as guided by technology and science, with wellness programming, private spa hale, Four Seasons accommodations, and Sensei by Nobu.

The petition says the hotel expansion area may include up to 9 villas, about 5 spa hale, and support buildings. It says the villas are important to help Sensei Lanai remain competitive, and that additional spa hale would help address capacity because the resort’s existing 10 spa hale are currently at capacity.

Community voices raise concerns

Some residents have expressed concerns about how large-scale development could affect Lanai’s environment and limited resources. Water usage, land preservation, and the island’s small-town character are often part of the discussion when new projects are introduced.

While development brings investment and jobs, others worry it could change daily life on the island.

Balancing tourism growth with the preservation of natural surroundings remains a key issue in community and state planning discussions, as development pressures increase on limited island land and resources.

Lanai remains small community

Lanai is one of the least populated inhabited islands in Hawaii, with only a few thousand residents centered in Lanai City. Life on the island is quiet and closely knit, with most services and housing concentrated in a small town.

This makes any development proposal a major topic locally, since changes to land use can have a noticeable impact on daily routines, traffic, housing availability, and the overall feel of the community environment, especially in such a small island setting with limited expansion space and strong cultural ties across generations.

Tourism and local economy impact

Supporters of the plan say development could bring more tourism revenue and create jobs for residents. Expanded resort facilities may attract more visitors who contribute to the local economy through lodging, services, and recreational activities tied to the island’s hospitality sector.

At the same time, some worry that too much development could strain resources or shift the island’s character.

The challenge is finding a balance that supports economic growth while protecting the environment and maintaining the lifestyle that makes Lanai unique for future generations and residents alike.

Infrastructure questions remain central

Under Ellison’s ownership, Lanai has seen changes that include resort redevelopment, infrastructure upgrades, and high-tech agricultural projects. The new petition also reviews water, wastewater, roads, utilities, drainage, and other public services tied to the proposed Koele Project.

The filing says the project’s estimated water demand is 59,415 gallons per day and that total forecasted demand would remain below Lanai’s 6.0 MGD sustainable yield and the 4.3 MGD management trigger.

It also says that future walkways, wastewater capacity, stormwater controls, and green infrastructure measures are part of the project review.

Land commission review ahead

The Hawaii Land Use Commission will review the petition and consider whether the proposed changes comply with state land-use rules. The LUC deemed the filing complete on April 20, 2026, and the matter has been tentatively scheduled to be heard on July 15, 2026.

The review process allows testimony from residents and stakeholders before a final decision is made. For Lanai, the outcome could help shape how future resort development, open space, infrastructure needs, environmental protection, and community concerns are balanced.

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Big decisions ahead for Lanai

Plans for new development on Lanai are still under review, but they show how the island continues to evolve under private ownership. The proposed land-use changes could reshape parts of the Koele area while supporting resort operations, guest accommodations, ranch uses, and park space.

For many residents, planners, and visitors, the outcome will be closely watched because it may influence how small island communities balance tourism growth, environmental protection, infrastructure limits, and preservation of local character.

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What do you think about expanding resort areas in places like Lanai? Share your thoughts.

This slideshow was made with AI assistance and human editing.

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