HILO, Hawai'i — The developer of the huge Kona Kai Ola project on state-owned land at Honokohau Harbor has announced a new proposal to reduce the number of timeshare and hotel units planned for the site while increasing the commercial space in the project.

The new proposal for land south and east of the harbor also scales back on the expansion of the harbor itself. Instead of building a new 45-acre marina with 800 boat slips next to the existing harbor, the new plan would create a 25-acre marina with 400 slips.

David Tarnas, consultant for the project, said Kona Kai Ola will still deliver more than $100 million in public benefits at the developer's expense, including the marina, park space and a major new road makai of Queen Ka'ahumanu Highway that would link Kuakini Highway to Kealakehe Parkway.

The state Hawaiian Homes Commission has accepted the final environmental impact statement for the project, which is proposed by Jacoby Development Inc. of Atlanta. However, the development still needs a variety of state and county permits, and Jacoby may face significant opposition as it seeks those approvals.

Kona residents are frustrated by traffic congestion, and many blame the county government for approving developments without making sure that roads and other infrastructures were in place to accommodate the extra visitors and residents.

The project is planned for 200 acres the developer leases from the state Department of Hawaiian Home Lands, and another 330 acres Jacoby plans to lease from the state Department of Land and Natural Resources.

Tarnas said in an interview yesterday that the final environmental impact statement includes a proposal to reduce the number of timeshare units in the project from 1,800 to 1,100, and to reduce the proposed number of hotel rooms from 700 to 400.

However, the new proposal would increase the amount of commercial space from 51 acres to 143 acres, Tarnas said.

About 224 acres within the project are planned as green space, open space or public spaces, which is about the same acreage as under the original proposal. However, there will be fewer water features and lagoons under the new plan, and more open green spaces for public use, he said.

On the potentially critical issue of additional traffic, Tarnas said the original project would have added 1,511 additional vehicle trips during the morning peak period, and 3,277 vehicle trips in the afternoon peak. That would be reduced under the new plan to 977 during the morning peak period, and 1,972 in the afternoon peak.

Tarnas stressed that the project will also affect traffic in favorable ways by providing the new Kuakini Highway extension at the developer's expense.

The developer hopes to begin construction sometime in 2009, he said.

Reach Kevin Dayton at kdayton@honoluluadvertiser.com.