Commercial Scene : Shelter Island Resort Will Be Razed, Rebuilt

A group led by an Australian-based developer plans to tear down and rebuild the landmark Kona Kai Club & Resort on San Diego’s Shelter Island.

The Bond Corp. plans to build a 318-room hotel with banquet and meeting facilities, two dining rooms, health club, lap pool and tennis courts. It will also add 45 boat slips to the marina’s current 275 slips.

Design plans by Phoenix-based architects Cornoyer Hedrick call for a Polynesian theme throughout the complex, with large wood beams, natural stone walls, waterfalls and hidden grottoes.

Bond owns controlling interest in Kona Kai Associates, the current owner and manager of the complex. The project will be developed by Kona Kai, with construction services provided by San Diego-based Ninteman/Sundt.

Demolition of the current facility will begin in September, with completion of the new, $50-million complex scheduled for January, 1991.

The Kona Kai was the first property developed on Shelter Island. It was a mainstay of San Diego’s social scene in the late 1950s and ‘60s, but gradually lost much of its luster--and business--to other local hotels and resorts.