Kamehameha Schools took another step toward developing a life-sciences research complex on property it owns next to the University of Hawai'i medical school in Kaka'ako yesterday, tentatively selecting two developers to build and operate the long-planned facility.

The nonprofit trust said an initial phase with 150,000 square feet of research space could break ground in late 2006 and take about 18 months to complete, with another 250,000 square feet to follow.

The overall 400,000-square-foot project is estimated to cost $200 million and support more than 1,000 jobs.

Working with Kamehameha Schools to develop the project will be San Diego-based biotech real-estate firm Phase 3 Properties Inc. and KUD International LLC, a California-based affiliate of Japanese construction firm Kajima Corp.

The two companies jointly responded to a request for development proposals issued by the landowner early this year, and are expected to negotiate a final development agreement.

"We believe that KUD's tremendous experience in development, construction and financing, and the tremendous strength of Phase 3 in marketing and leasing life-science facilities and property management creates a world-class team to develop this ambitious project," said Susan Todani, director of Kamehameha's planning and development division.

The project, dubbed KB Park, or Kaka'ako Biotech Park, is envisioned to complement the UH medical school and a planned cancer research center, and help attract other bioscience-related businesses to the area.

Hawai'i has struggled to develop more than a fledgling high-tech industry, and the speculative development of leasable research facilities for biotechnology, pharmaceutical, nutraceutical and other life-science fields is a big bet that the industry can expand and thrive in the state.

Ted Liu, director of the state Department of Business, Economic Development and Tourism, said KB Park is "great news for Hawai'i's economy and for the economic diversification that we are seeking."

Liu also said KB Park complements the residential, commercial and recreational development plan for 36.5 acres of nearby state-owned land under a proposal from Alexander & Baldwin.

"We're seeing the live-work-play vision come to life," said Daniel Dinell, executive director of the Hawai'i Community Development Authority, a state planning agency.

KB Park is envisioned to comprise three buildings on 5 acres of land owned by Kamehameha Schools just diamondhead and makai of the former Gold Bond Building between Cooke and Coral streets on the makai side of Ala Moana. The property is leased to a car dealership through June 2006.

Kamehameha has been working on the project for years, and in May was part of a consortium that obtained $11 million worth of federal tax credits to help attract financing for the project.

Kamehameha Schools would remain the land owner and earn lease income, said Kekoa Paulsen, a Kamehameha spokesman. KUD and Phase 3 would primarily finance, develop and manage the project.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.