HONOLULU (KHON2) — The iconic Coco Palms Hotel on Kauai, which has been an eyesore for more than 30 years, is about to be rebuilt.

But some Garden Isle residents and community leaders say they don’t want another hotel there because it will lead to more traffic and environmental problems.

The Coco Palms Hotel gained a reputation as a playground for celebrities, including Elvis Presley. But it has sat there in ruins since Hurricane Iniki battered the island in 1992. The developer Reef Capital Partners, which is based in Utah, says it plans to build a 350-room hotel, which should be completed in three years.

But some residents say traffic is already so bad in that area that it’s known as the “Kapaa Crawl.”

“We don’t want the traffic, we don’t need another hotel, we can’t even staff our hotels as it is. The new One Hotel is really struggling with staffing,” said Fern Holland, a community activist.

Community leaders say there was the desire to rebuild Coco Palms when it came down but that’s no longer the case.

“The sentiment today from what I’m hearing as I go across this island is completely opposite. No they don’t want to see a new hotel there,” said Kauai Council Chair Mel Rapozo.

The developer says it plans to provide free shuttle services to help ease the traffic.

“We also want to have the highest levels of dining and spa and so that the amenities on site don’t leave people much need to crawl around Kauai,” said Patrick Manning, Reef Capital Partners Project Director.

Manning says if there aren’t enough workers, the company will bring in mainland workers and provide affordable housing for them. He adds that there will also be a cultural center built to highlight the history of the site.

“That is the number one amenity of Coco Palms and we want to honor, embrace, and enhance everything we can to share that,” said Manning.

Native Hawaiians consider the site sacred,as it was once home to ancestral remains and fishponds. Residents are skeptical that the developer can show the importance of that.

“It gives me no faith, that a Utah based developer who is hiring a Utah-based contractor would be able to preserve and protect the cultural and environmental values,” said Holland.

Community leaders say there are plans for a legal challenge to stop the project.