The credit is expected to go toward construction of a "world class" aquarium designed to draw visitors to the economically depressed Leeward Coast.

Addressing criticism about the credit, Lingle said development at Ko Olina was key to meeting the cry for jobs and job education in the area.

"If it didn't favor this district, I wouldn't have been supporting it," Lingle said. "I don't think many others would either. It's not just a tax credit for any project anywhere in the state."

Lingle said she also supports this tax credit, as opposed to others, because it sets a limit on the amount that can be taken. "Our budget cannot continue to adjust to the unknown," she said. "This tax credit is very defined."

Lingle and Ko Olina developer Jeff Stone also announced establishment of a $2.5 million Ko Olina Training Fund, that would go specifically to programs and institutions geared toward job training for area residents.

Besides the aquarium, upcoming development at Ko Olina is expected to include a second hotel to be developed by the Ritz Carlton chain, and a yet-to-be-announced second time-sharing facility.

Stone said he expects construction to be completed by 2007.

Lingle has indicated she likely will veto a bill that would extend the hotel construction and renovation tax credits adopted in a special session soon after the Sept. 11, 2001, terrorist attacks in New York City and Washington, D.C.