Renovations begin at former Hilo Memorial Hospital for county services hub

Work has begun at the former Hilo Memorial Hospital on Rainbow Drive, starting the first phase of a long-promised shift from a dormant landmark to a coordinated services campus for South Hilo. Hawaii County plans to use the historic property, which once treated generations of island families, for housing stabilization, workforce readiness, behavioral health and wraparound support in one place.

The county awarded the first-phase contract to Diede Construction Inc. as the low bidder, at $8.03 million. That phase is expected to take about 12 months and includes reroofing the main structure, removing hazardous materials and cutting back invasive trees that threaten the foundation. Later phases are expected to tackle electrical and mechanical systems, ADA accessibility, interior renovations and exterior repairs before tenant improvements and program occupancy can begin.

The project is being financed in part with $16.6 million in federal grants secured by U.S. Sen. Brian Schatz and U.S. Sen. Mazie Hirono. Of that total, the Hawaii County Council accepted $13 million and another $3.6 million was added later. County housing administrator Kehaulani Costa said those funds are helping lay the groundwork for a site where housing, services and support can be delivered together more efficiently.

The building at 34 Rainbow Drive dates to the 1920s and is described in county materials as a three-story structure built in phases from 1922 to 1924, with a third phase completed in 1929. The old hospital itself opened in 1897 and served the community until the 1950s, when Hilo Hospital opened on the grounds that now hold Hilo Medical Center. After years of vacancy, the county has been trying to make the site useful again instead of letting one of South Hilo’s most recognizable properties continue to sit underused.

The nearly 25-acre property is owned by the State of Hawaii and managed by the county through executive order. It already functions as a service campus: HOPE Services Hawaii Inc. launched the 44-bed Keolahou emergency shelter for men in 2019 with state Ohana Zone support, and Hale Kulike operates as a 17-bed permanent supportive housing program on the same grounds. The county also says about 20 additional acres remain undeveloped and could be shaped by a separate master plan for future housing and services.

County records show the broader planning effort has been building for years. The project received a Finding of No Significant Impact on April 23, 2024, after community input gathered through public meetings and a web-based StoryMap process. The county selected SSFM International as construction project manager in July 2025, issued the bid invitation for phase one on Aug. 6, 2025, and set bids due for Sept. 25, 2025. For South Hilo, success will mean more than a repaired building. It will mean a working campus where people can get shelter, housing help and behavioral health support at a site that has waited decades for a new purpose.