The Hawaii Community Development Authority and KUD International LLC issued a joint statement saying they "mutually terminated" an agreement for KUD to develop an 11.5-acre site in the 670-acre waterfront area adjacent to downtown Honolulu.

The HCDA, the state agency that oversees development of Kaka'ako, said it would incorporate the KUD parcel into a larger, more comprehensive development plan for the area.

A master developer for such a project will be selected through the formal public bidding process, the state said.

"It has become obvious to HCDA that the potential synergies between the various programmed uses in Kaka'ako can be best maximized through a master developer," HCDA chairman James Kometani said in a statement. "After making a commitment on the Kaka'ako site for an ocean science center over a year ago, the larger potential for Kaka'ako has become increasingly clear to both KUD and HCDA."

Marvin Suomi, president of KUD, said the company still believes an ocean science center can be incorporated into the master development plan for Kaka'ako.

He said KUD supports the selection of a master developer, "that can combine the different ideas for Kakaako into one coordinated vision that will meet the diverse needs of the community."

KUD International is a subsidiary of Kajima USA, which is part of Japan-owned developer Kajima Corp.

The company's plans for a $200 million aquarium and marine science center were announced in late 2002, the same year then-Gov. Ben Cayetano vetoed a bill that would have granted $75 million in tax credits over 10 years for the development of a 75,000-square-foot aquarium at the Ko Olina Resort & Marina in Leeward O'ahu.

While there were differing views on which proposal would be best for Hawai'i, most observers agreed that there wasn't enough room on O'ahu for two world-class aquariums.