"I think this was really the will of the people. ... And I think that we fully realize that this may set development back in that area, but I think that it's a good step," said Sen. Russell Kokubun, lead senators on the conference committee considering the bill.

The measure, which would prohibit any residential development in the area, still requires approval of the full House and Senate.

As the measure made its way through committee hearings, more than 20 people wearing red and gold T-shirts declaring "Public Land Not For Sale" regularly crowded into meetings on the bill.

Opponents of development plans for the Kakaako district fear massive traffic and overpopulation problems that would affect local beachgoers, surfers and others who use the waterfront that now has relatively little commercial development.

In November, about 150 people rallied at Kewalo Basin Park to protest the initial plan by the real estate subsidiary of Alexander & Baldwin Inc.

U.S. Rep. Neil Abercrombie, D-Hawaii, had also criticized the initial plan, calling for the abolition of the state Hawaii Community Development Authority.

Meredith J. Ching, vice president of government and community relations with Alexander & Baldwin, said the company would reserve its comments until after the floor votes on the bill.

In September, the state authority selected the company's $650 million plan to redevelop 36.5 acres of the waterfront and the area surrounding Kewalo Basin.

The plan included high-rise residences, shops, public spaces and possibly a farmer's market. But it was later scaled back, eliminating one of three proposed 20-story condominium towers, to address the concerns of locals who used the area.

Kokubun, D-Hilo-Naalehu, said provisions of the bill would send planners for the waterfront land back to the drawing board.

Lawmakers are looking for plans that are more inclusive of the residents who already use the area for recreation, including creating a continuation of Ala Moana Beach Park or farmers market, he said.

There also are proposals to use part of the land for a cancer research center to accompany the John A. Burns School of Medicine and for offices of the Office of Hawaiian Affairs, he said.

"So there is ongoing discussion about what should be occurring there," Kokubun said.