Alexander & Baldwin Inc. has received final zoning approval to expand its light industrial park in Kahului, Maui.

The project will convert 179 acres of sugar cane fields, former sugar plantation buildings and fallow land into a second phase of its existing 69-acre Maui Business Park, and contribute community benefits including land conveyed to the county for a park and affordable housing.

A&B said the business subdivision expansion will meet projected demand for commercial space including retail over the next 15 years.

"For A&B, this project represents a cornerstone of our real estate development plans for Maui," Stan Kuriyama, CEO of Alexander & Baldwin real estate subsidiary A&B Properties, said in a statement.

"Maui Business Park is also important for the Maui community and its economic future, as this project will provide a source of commercial opportunities, and jobs, for many years to come."

A&B in 2004 received state Land Use Commission approval to reclassify the bulk of the property for urban use. The land is in Maui's commercial core and was designated for light industrial use on the Wailuku-Kahului Community Plan.

Last month the Maui County Council approved rezoning the property, and Maui Mayor Charmaine Tavares signed an ordinance last week.

As part of the project, A&B's land contributions to the county will include 40 acres for affordable housing, at least 20 acres for one or more wastewater treatment plants, 7 acres for a community center and 3 acres for a park.

At the start of the project, A&B also will build a bypass road to relieve traffic congestion on Dairy Road, a major thoroughfare in the area.

A&B said it expects to begin construction in late 2010 followed by sales when subdivision improvements are complete. Development and sales are expected to be completed over 15 years.

Tenants in the project could include retail stores, offices, warehouse and distribution facilities, light manufacturing and research.

Because of the site's proximity to Kahului's airport and harbor, potential users also include car rental agencies, flight kitchens, freight forwarders and cargo handlers.

The first phase of Maui Business Park, which started in 1995, includes Maui Marketplace, anchored by Borders Books & Music, Lowe's, OfficeMax and Old Navy.

Home Depot and Wal-Mart also built stores on business park land bought from A&B.