The company redeveloping Kaua'i's classic Coco Palms Hotel announced it has begun selling the first of 248 former hotel units being converted into residential condominiums at sale prices starting at $1 million.

Coco Palms Ventures LLC has been working since 2004 on a $200 million redevelopment of the venerable hotel set amid lagoons and a 2,000-tree coconut grove.

The developer plans to add two restaurants, retail space, a fitness center/spa, wedding chapel, banquet space and other amenities to the property, which is slated to reopen in 2009.

The Polynesian-style hotel on 16 acres originally opened in 1953 and became widely known as the setting for Elvis Presley's 1961 film "Blue Hawaii," but has been closed since 1992 after being damaged by Hurricane Iniki.

Coco Palms Ventures is a partnership between the Weiser Cos. Inc. and Petrie Ross Ventures. For more information, visit cocopalms.com.