State officials should accept a recently modified development plan by Alexander & Baldwin Inc. that includes two residential condominium towers, park space, a hula amphitheater and a farmer's market on about 30 acres of state land on the Kaka'ako peninsula, according to a subcommittee of the agency charged with managing the area.

Meanwhile, a grassroots organization urged board members of the Hawai'i Community Development Authority to consider an alternate development plan anchored by museums, performance theaters and a "living" historic Hawaiian fishing village.

The agency, which solicited private development proposals a year ago, could vote at a Feb. 1 meeting on whether to proceed with the formal development plan by A&B, which the agency tentatively selected in September over five other development plans responding to a state request for proposals a year ago.

A&B's initial plan included three condo towers, a pedestrian bridge over Kewalo Harbor channel, a restaurant and banquet facility at Point Panic and a restaurant complex at Kewalo Basin Park.

A&B modified its plan in response to community concerns, which pleased some residents, though many are still opposed to selling any state land for condo development. A&B and the agency have said the condos are needed to help pay for the public-benefit improvements to what is now largely industrial and inaccessible land.

The agency subcommittee, comprising three members of the 11-member board, supported the revised plan but suggested that A&B consider adding rental apartments above a proposed commercial village along the 'ewa side of Kewalo Harbor.

The committee also recommended that A&B try to enhance the connection between improvements on the peninsula and the diamondhead side of Kewalo Harbor in light of not having a bridge, and designate the makai-most condo for elimination.

ALTERNATIVE OFFERED

A&B had not indicated which of the three condos it would remove from an inland 7.5-acre site next to the Children's Discovery Center.

There was no public testimony responding to the agency's recommendations at the meeting. But Michael Kliks, a member of grassroots organization Save Kaka'ako Makai, offered an alternate development plan.

"There's been criticism that the opponents of Alexander & Baldwin and HCDA have no plan," he said. "We do have a plan."

The nonprofit development plan presented by Kliks would roughly double the size of Kaka'ako Waterfront Park toward Point Panic and mauka of the Children's Discovery Center. A commercial Hawaiian fishing village attraction primarily geared toward tourists would take up roughly 10 acres fronting Kewalo Harbor and financially support the project.

Public elements of the plan include a bandstand, community center, performing arts center, fish and farmers market, canoe halau, expanded park and parking. The commercial village would include a surfing museum, canoe building exhibit, food and gift shops, performance theaters and a living depiction of a Native Hawaiian fishing village with a stream, fish pond, heiau and performance areas.

COSTS UNCLEAR

Proponents of the self-described "People's Preferred Plan" did not have development cost or revenue projections for the plan, but suggested that money could be obtained from government grants, nonprofit organizations, private donations and state and city coffers. The plan assumes 2,000 to 2,500 visitors a day would spend $50 in admission fees and purchases to generate $36 million to $45 million a year in revenue.

"I don't see a great burden on the taxpayers," said Save Kaka'ako Makai member Michelle Matson.

Derrick Kiyabu, a frequent surfer at Kewalo's who works in Kaka'ako, told agency board members that they should explore other options, given that many community members have spoken out against selling state land to improve the peninsula.

"I think what you hear is a lot of community concern for what's going on," he said. "I know you guys followed the (procurement) rules ... but maybe that grassroots outcry is something that you can give more attention to."

Agency executive director Daniel Dinell said in an interview that the Save Kaka'ako Makai presentation was constructive. "We welcome this kind of community input," he said.

But Dinell also said the agency can't agree to implement the plan or any other that might be offered by another company or organization because competitive bids already were solicited and accepted. He added that it would be difficult to speculate whether elements of the Save Kaka'ako Makai plan might be incorporated into A&B's plan.

Stan Kuriyama, CEO of A&B's land division, said A&B's plan is based on the agency's vision to include homes on the peninsula to help create a "live, work, learn and play" community.

"The residential component — which the plan proposed today lacks — is essential to achieving that vision," he said. "The proposal made today by the Kaka'ako group incorporates some of the ideas we had proposed for our project, but is essentially an entertainment and tourism-based project."

Kuriyama said A&B appreciates the agency committee recommendations, and will evaluate their feasibility.

The agency postponed a Jan. 16 deadline to reach a nonbinding agreement with A&B to proceed with the project subject to finalizing details such as lease income and land-sale proceeds paid to the state. A vote on whether to proceed with A&B's revised plan could come as early as Feb. 1.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.