Target Corp. held a groundbreaking ceremony yesterday for its third Hawai'i store, which will anchor what is envisioned to be the biggest shopping center on the Big Island.

The 160,000-square-foot Kailua, Kona, store is projected to open in July 2009, four months after Target's first two stores open on O'ahu if construction proceeds as planned.

The nation's No. 2 discount retailer in January broke ground for the O'ahu stores — in Kapolei at the planned Kapolei Commons shopping center, and in Salt Lake at the former Bougainville Costco site.

The three stores together are expected to create 750 to 1,150 jobs, and will present a much-desired retail chain to Hawai'i consumers who have been anticipating Target's arrival since the company acknowledged in early 2006 that it was seeking to open stores in the state.

The Kona Target will be the largest tenant of Kona Commons, a roughly 615,000-square-foot retail complex slated for construction in two initial phases representing about half the center's total retail space, followed by a third phase in the next few years.

"We are thrilled to be here and to begin bringing to life our vision of joining the Kailua, Kona, community," Target official Rob Parke said in a written statement.

The Target store is the second phase of Kona Commons. Construction on the first phase is underway and should be finished later this year with space for around 20 tenants, including Circuit City, Sports Authority, Petco and Office Max. Smaller tenants include Panda Express, Vitamin Shoppe, Tasty Thai and Nail Trix.

A roughly 300,000-square-foot third phase is projected for completion between 2010 and 2012 — with possible features including a fashion mall, a full-line department store and a movie theater.

Kona Commons is being developed by a partnership between local developers the MacNaughton Group and the Kobayashi Group on 67 acres of undeveloped land leased from the nonprofit Queen Lili'uokalani Trust.

The project is mauka of the old Kona airport park site, between Kuakini and Queen Ka'ahumanu highways, and north of an existing industrial subdivision.

If built out as envisioned, Kona Commons would be almost one-third the size of Ala Moana Center on O'ahu, and would be the largest retail center on the Big Island.

By comparison, Prince Kuhio Plaza in Hilo is currently the island's largest shopping center at about 505,000 square feet.

Presently, retail in Kona is mostly strip-center-style complexes anchored by supermarkets, and a handful of big stores, including Wal-Mart, Home Depot and Costco.

West Hawai'i has seen significant retail expansion in recent years, fueled by tourism and a growing local population, though much of the new retail developed has been at luxury Kohala Coast resorts north of Kona.

To help handle increased traffic expected in the Kona Commons area, the developer plans to create two left-turn lanes and a right-turn lane from Queen Ka'ahumanu onto the road leading to and through Kona Commons, Makala Boulevard.

Makala also is being widened, and will get three traffic signals, underground utilities, sidewalks, curbs and gutters.

Other traffic improvements include a relocated driveway leading to the Queen Lili'uokalani Children's Center.

Separately, the state is widening Queen Ka'ahumanu Highway.