No cost estimates have been released for the projects. JDI development partner Chad Martin said, "It's a big figure."

Martin said the first step is to negotiate a lease with the Department of Land and Natural Resources but it likely will take years to secure the necessary permits.

The project, dubbed Kona Kai Ola or "Kona-The Living Sea," includes expansion of the Honokohau Harbor marina. Now there are fewer than 250 slips.

Plans include a 45-acre, 800-berth addition with a swimming lagoon, two yacht clubs, waterfront commercial property and a golf course.

Other features include a cultural center, employment training center, Hawaiian fishing village and canoe facilities.

Also proposed are affordable homes, as well as three resort parcels within Kona Kai Ola.

The plan calls for expansion of Kealakehe Parkway to link up with Kuakini Highway in Kailua, Kona. A trolley service and bicycle and pedestrian paths also are planned, as well as public access to cultural sites and the shoreline, officials said.

JDI sought community comments last year and conducted an archaeological assessment earlier this year.

Kealakehe Ahupuaa 20/20, a group led by local businessmen David Kawika Marquez, Skip Cowell and Chris Armstrong, was deemed unqualified for handling the development.

Marquez said his group focused on generating a self-sustaining economic base and a partnership with the community.

Because their plan was disqualified, Marquez said they will retain legal counsel to challenge the selection process.

Criteria for qualification included experience in real estate and marina development and management, and financial capabilities.

Cowell had urged the board to delay making a decision for six months, until the legal matters can be resolved.

He said the plan is not the best use of state land and his group represents the wishes of the people. "They don't want another golf course and plush condos," he said.

Public hearings will be scheduled throughout the process.