A master plan by Kamehameha Schools to remake 29 acres of its land in Kaka'ako into a largely high-rise residential community was approved yesterday by the state agency that oversees the area.

The approval will allow Hawai'i's largest private landowner to break ground as early as next year, possibly starting with a Safeway store on the site formerly occupied by CompUSA.

Overall, the buildout of the nine blocks between Restaurant Row and Ward Centers mauka of Ala Moana is anticipated to take 15 years and produce up to 2,750 homes with seven towers as well as low-rise buildings, some retail and park space.

Approval of the plan followed a highly publicized public hearing held in May that attracted mostly support for the project called Kaiaulu 'o Kaka'ako, or Kaka'ako Community.

Some residents have expressed concerns about the project's concentration of towers and impact on traffic, but the plan closely adheres to rules of the Hawai'i Community Development Authority, the agency overseeing development in Kaka'ako.

The HCDA in January approved a similar application from General Growth Properties to redevelop 60 acres under its Ward Centers shopping complex into a dense urban village of largely residences and retail that could include 20 high-rise buildings.

Yesterday, about a dozen supporters turned out to encourage agency board members to approve the Kamehameha plan, which forecasts creating 5,466 full-time jobs at full buildout in addition to roughly 9,000 temporary construction jobs.

Kamehameha Schools spokeswoman Ann Botticelli said the trust is delighted with the go-ahead.

"We have been really gratified by the support the plan has received from our neighbors in Kaka'ako and the general community, and we're pleased that the HCDA supports our vision as well," she said.

The approval locks in a framework for 15 years defining building heights, density, affordable-housing contributions and public-space dedications for the plan.

AFFORDABLE PRICES

Kamehameha Schools announced its plan in November, and submitted its development application in December. In July, the trust drafted a development agreement with the agency's help that sets out several requirements for the project to go beyond the agency's general requirements.

Under the development agreement approved yesterday, Kamehameha Schools will improve on the agency's standard affordable housing requirement of producing 20 percent of housing at prices affordable to residents earning no more than 140 percent of Honolulu's median income.

The developer agreed to meet the 20 percent requirement, which equates to 550 of the 2,750 homes, but also make 10 percent of the 550, or 55 homes, affordable to residents earning no more than 100 percent of the median income.

The agreement also allows the developer to earn credits for producing excess affordable housing, donating land to the agency or converting market-priced housing to affordable housing in the area. Credits also could be traded with other Kaka'ako developers.

Kamehameha Schools also committed to identify potential grave sites before development work begins.

Kaka'ako is known to have a relatively high concentration of burials, some of which have been disturbed inadvertently by other developers such as WalMart, General Growth and Kawaiaha'o Church in cases that have triggered deep grief for recognized descendants.

Some people testifying at yesterday's hearing complimented Kamehameha Schools on its proactive cultural preservation approach.

CONNECTING PARKS

Other parts of the plan include connecting Kaka'ako Gateway Park where it ends at Ala Moana with Mother Waldron Park three blocks mauka by adding a strip of park space down both sides of Cooke Street, and converting existing industrial buildings along Cooke into a plaza with a performance area, cafes, restaurants and other neighborhood retail businesses.

The city's planned rail line is slated to connect with the project with a transit station identified for part of Kamehameha Schools land on Halekauwila Street that will help create dense pockets of potential transit commuters.

Another envisioned tie-in for the project is a biotech office complex Kamehameha Schools plans to develop on two blocks near the University of Hawai'i medical school makai of Kaiaulu 'o Kaka'ako.

Kamehameha Schools owns 12 acres over four blocks makai of Ala Moana that aren't included in the master plan because different development rules apply in that area.

An initial phase of construction on Kaiaulu 'o Kaka'ako is estimated to begin next year starting on three blocks between South and Keawe streets.

One of those blocks is the former CompUSA site. Botticelli said Kamehameha Schools is close to signing a letter of intent with Safeway to develop the property. The landowner also is preparing to solicit interest from developers to build on the block bounded by Halekauwila, Pohukaina, South and Keawe streets.