The ambitious development will be the center's biggest project since the $40 million, 156,000-square-foot entertainment complex with theaters, restaurants, stores and parking that opened three years ago.

"We already have a great mix of tenants, and this development will create a true live/work/play option for O'ahu residents and create a more vibrant street life," said Victoria Ward general manager Jeff Dinsmore.

"We're very excited."

The long-considered project would expand retail space at Victoria Ward's complex of shopping centers by a third to 800,000 square feet and alleviate parking constraints.

The new retail space will total about 200,000 square feet and will maintain Victoria Ward as O'ahu's third-largest retail complex behind Ala Moana Center and Pearlridge Center.

The redevelopment will retain Pier 1 Imports and incorporate an 1,100-stall parking structure and 218 rental apartments on most of the block bordered by Kamake'e, Auahi and the new Queen Street extension.

In addition to that project, a new 10,000-square-foot retail space will be built to replace the Tesoro gas station on the corner of Ward Avenue and Auahi Street and another 10,000 square feet of shops will be carved into Ward Centre's parking garage fronting Auahi.

Ward Village, the complex of shops across Auahi Street from Ward Centre, will be replaced with two levels of retail topped by 10 levels of apartments, and surrounded by a seven-story parking structure. Advertiser library photo

Redevelopment work on the gas station and Ward Centre parking shops could begin in January and be completed in the spring if planning and the acquisition of permits progress as anticipated.

The larger Ward Village redevelopment would commence after completion of the two smaller projects, and the new stores are projected to be finished in spring 2006, followed by the apartments in fall 2006.

Dinsmore did not identify prospective new tenants for the expansion, though he said some would be new to Hawai'i. Previously, Victoria Ward has said it has talked with Cost Plus World Market and Linens 'N Things.

The planned additions would be the first major change at Victoria Ward since General Growth Properties bought the property in May 2002 for $250 million.

Previous owners had considered such an expansion as part of their vision to transform the sprawling property of retail centers, warehouses and offices into a "live/work/play" neighborhood where people can walk from their homes to work, dine out, go to a movie and shop.

General Growth, a Chicago-based real estate investment trust that owns Ala Moana Center, had been reassessing the plans since its purchase of Victoria Ward.

Meanwhile, the urban village vision of a two-block Main Street surrounded by a residential community began to materialize with the development of the Hokua luxury high-rise condominium on the diamondhead end of the property and another on a neighboring site.

Dinsmore said there has been strong demand for rental apartments as well as for parking, which at times has been tight and an issue for some retailers.

"The success of our developments down here have made parking a challenge," he said. "We are always looking for ways to make Victoria Ward an even more customer-friendly destination for shopping, dining and entertainment."