Plans for a time-share, hotel or residential condominium tower at the 'ewa end of Kuhio Avenue in Waikiki gained support from a neighborhood board after more than an hour of heated debate.

The estimated $125 million project, which is called 2121 Kuhio and requires a zoning change to proceed, won approval from the Waikiki Neighborhood Board late Tuesday.

A motion to oppose a zoning change was defeated by a 10-5 vote, with two members abstaining. Later, the board voted 10-4 to support a zoning change with a declaration that members prefer a residential condo rather than a hotel condo or time-share.

The project drew objections from some occupants of neighboring condos who would have views obstructed and others concerned over traffic, sewer and water capacity.

"It was quite a debate," said Robert Finley, the board's chairman, who voted against both motions and said he was surprised by the outcome.

Jim Kehoe, a principal with developer and landowner K3 Owners LLC, said he was pleased by the board's support, which he felt was a reflection of the developer's effort to inform the community.

"I think it's been a good process," he said. "I think we were able to convey our vision. We're very excited about the project, and think it'll be a wonderful addition to Waikiki."

The neighborhood board's position is important because it is a major consideration for the City Council, which later will decide whether to amend zoning for the vacant project site, once occupied by Hula's Bar & Lei Stand.

The project also needs a Waikiki special district permit from the city.

Current zoning of the 1.3-acre site is resort commercial, which allows various use including retail and office space up to 300 feet. Landowner K3 Owners LLC is seeking a change to resort mixed-use that would allow residences, time-share or hotel built to the same height limit.

K3 Owners is proposing a 220-unit residential condo or time-share, or a hotel condo with 140 hotel units and 120 residential units.

The developer, which first shared its plan for a high-rise with the community in 2004, said market conditions 12 to 15 months from now — when the project could be closer to starting unit sales — will dictate the preferred use of the planned tower.

Mike Peters, a neighborhood board member who opposed the zoning change, said it has been frustrating but understandable as to why the developer hasn't committed to one type of use over another.

"They come to our community asking for support, but they can't say what they are going to put there," he said.

The position taken by the neighborhood board was unconditional, meaning supporters prefer that the project be a residential condo but still back a zoning change should it lead to a hotel condo or time-share.

Some community members prefer residential use of the site because there are limited housing options in Waikiki, and condo owners would become stakeholders in the area while vacationers would not.

Finley, the neighborhood board chairman, said the developer addressed concerns about traffic, sewer and water capacity to his satisfaction. But Finley still opposed the project, saying zoning was designed to shape the community and shouldn't be changed.

"I really hope we haven't opened up zoning changes in all of Waikiki," he said.

The Waikiki Improvement Association supports the project and notes that the city's development plan for Waikiki designates the area including the 2121 Kuhio site for resort mixed-use zoning sought by the developer.

Mixed-use zoning would result in 50 percent open space on the site. Under existing resort commercial zoning, a developer would be allowed to build an office high-rise with 23 percent open space.

Jeff Merz, a planner and neighborhood board member, said he voted to support the project partly because of the increased open space. He also said the building, while big, is aesthetically pleasing and should fit well with the neighborhood.

"I think they were sensitive to the (community) concerns," he said of the developer.

Louis Erteschik, neighborhood board vice chairman, objects to the 2121 Kuhio project because, he said, there are too many high-rise buildings in Waikiki. "I just don't think it's appropriate for the neighborhood," he said.

Erteschik added that he would support a low-rise project, and that he is confident that no one would build an office high-rise on the site.

In the late 1990s, the site was slated for a three- to five-story retail complex envisioned as a future phase of the neighboring luxury retail complex 2100 Kalakaua. But the market for retail on Kuhio is dramatically weaker than the market for residences, hotel units and time-shares.

The developer, which involves investment firm Lehman Bros. and San Francisco-based Belrad Group, has said a residential or time-share tower would create less traffic than the previously envisioned retail complex.

K3 Owners has said the proposed tower, regardless of use, would include a roughly 10,000-square-foot restaurant complex and 325 parking stalls that include 92 required stalls for 2100 Kalakaua.

If zoning and permitting approval is received, construction is unlikely to start for about two years. Construction likely would take 18 to 24 months.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.