Organizations and businesses on a swath of land from Kalihi to Kaka'ako would be eligible for millions in federal and private grants for property improvements if a special federal "heritage area" designation is approved.

The "heritage area" designation, which must be approved by Congress, would be one of 37 in the nation and only the third in the West.

"We need to honor our history and our heritage," said Mona Abadir, president of the Hawai'i Capital Cultural District board of directors, the nonprofit formed to seek the designation. "By doing that, we create all these other opportunities, like generating economic growth ... and enhancing arts and culture education and participation."

Unlike some other heritage areas, the Hawai'i Capital Cultural District does not have one central theme. But officials say that's what makes it unique.

"The history of Honolulu is really a rich history, and this is about rethinking Honolulu as a place of heritage," said Bill Chapman, chief author of the district report and an American studies professor at the University of Hawai'i-Manoa.

Officials say the designation would likely mean an annual stream of federal and private funds for historic preservation, cultural awareness and education projects in the district.

In 2004, the latest year for which data was compiled, the then-27 heritage areas across the nation received about $45 million from the park service. Other private and public grants brought the total funding to $84 million. Studies show the designation also increased tourism, though the extent of growth in the sector varied widely.

"It's about more than the money," added Lorraine Lunow-Luke, coordinator for the capital cultural district and the nonprofit's only paid staff member.

"It's about the recognition of Hawai'i in terms of the value of our history."

As part of the approval process, a study was conducted to map out the area's historical transformation — from the days of the Hawaiian monarchy to modern times.

The study is now being circulated among Hawaiian history experts and cultural practitioners for accuracy and will be released to the public next month for suggestions.

The Hawai'i Capital Cultural District stretches from Kalihi to Pi'ikoi streets and between Beretania Street and the ocean. It includes 100 buildings on the National Historic Register, and other significant sites dating back to the Hawaiian monarchy.

The federal designation does not bring with it any change in existing zoning rules.

Gov. Linda Lingle, then-Mayor Jeremy Harris and legislators recognized the district in 2003, and a nonprofit was formed with seed money from the state and private sources.

The creation of the district, primarily envisioned as a vehicle for increasing tourism and resident traffic to Downtown Honolulu and Chinatown, came as the Hawai'i Tourism Authority was just starting to talk about its new emphasis on cultural tourism.

Now that campaign is in full swing, and officials hope the heritage area designation will prove successful in attracting tourists to the history, culture and arts in Honolulu.

"When tourists come and stay on O'ahu, they primarily stay in Waikiki or they tend to go through the same tour activities. This provides another venue for tourists," said T. Lulani Arquette, executive director of the Native Hawaiian Hospitality Association.

"Worldwide, tourists are becoming much more educated and sophisticated. They are much more concerned about culture, history and understanding a sense of place."

The association, along with several other Native Hawaiian groups, recently joined forces with the capital cultural district nonprofit. Arquette said one hope is that once the heritage district designation is secured, more tourists will hear and understand "Hawaiian perspectives."

Early on in the process, there were critiques about the size of the district. Some thought it was too large and incongruent, and should be limited to Downtown Honolulu.

Those early concerns appear to have dissipated, officials said.

And though members of organizations active in the process say not everyone is happy with the boundaries, they also say the district needs a definitive map. "There was some concern about the district boundaries," Arquette said. "I think it will work itself out."

Abadir also said the boundaries of the district are not hard — but "soft." She said some sites noted in the heritage area report are outside its proposed boundaries.

The district nonprofit would be responsible for divvying up grants awarded to the heritage area to businesses or other entities. Abadir said the board already has some idea where money would go. It is interested in historic preservation projects as well as increasing culture and arts opportunities for tourists and residents alike.

One idea, Abadir said, is to create recognizable banners for different parts of the heritage area, and another is to print walking tour brochures. Funds could also go to historic buildings, to arts programs or even to the city and state to improve sidewalks.

The heritage program started in 1984. Most heritage areas are on the East Coast or in the Midwest and cover large parcels of land tied to a significant moment, era or industry in America's history. For example, New Jersey boasts the Crossroads of the American Revolution Heritage Area, while Ohio — home of the Wright brothers — has the Aviation Heritage Area.

Federally designated district would help fund historic preservation and cultural awareness