NIU VALLEY — As many as 200 luxury homes could be built on land above Niu Valley under a plan being considered by the landowner, but residents who live below the ridge want to keep the land undeveloped.

As one of the last remaining ocean-view chunks of land with a view of Diamond Head, the property has the potential of being developed into one of the "most prestigious property developments on O'ahu," according to an online advertisement for the sale of the entire property. While currently slightly more than 1 acre is zoned for residential, a change in zoning would enable a developer to build on about 132 acres — one-third of the 337-acre ridge property.

There are now no plans going before city or state officials to develop the property, according to landowner Paiko Ridge Partners. Still, area residents — armed with the city's guideline for development and the East Honolulu Sustainable Communities Plan — are gearing up to launch a fight to prevent further development in East Honolulu.

"We were all shocked when we first found out about this," said Jeannine Johnson, a Niu Valley resident and member of the Kuli'ou'ou/Kalani Iki Neighborhood Board. "We've gotten used to these valley walls being green and empty."

The San Ramon, Calif.-based company purchased the property in 2004 for $1.2 million from St. Francis Healthcare System of Hawai'i, according to public records. Charles Zaloumis, Paiko Ridge Partners chief executive officer, said initial plans involved building homes on the land and using proceeds to build a free clinic in downtown Honolulu.

"But the process of development is very complicated in Ho-nolulu," Zaloumis said. "The idea of a development is only in the thinking stage. I hate to let go of the idea." Paiko Ridge Partners has put the property up for sale to test the market.

The acre zoned for residential use is within the urban growth boundary, as defined in the East Honolulu Sustainable Communities Plan. The remaining acreage is outside the urban growth boundary and zoned for preservation purposes. Any change in zoning or amendment to the sustainable plan requires City Council and state land use approval.

Earlier this month, more than 50 area residents packed a tiny meeting room and persuaded the Kuli'ou'ou/Kalani Iki Neighborhood Board to pass a resolution asking city and state officials to not allow any development that is outside of stated boundaries in the East Honolulu Sustainable Communities plan. The board also sent a letter to city officials stating its opposition to the potential development and asked for a public hearing should any development plans be submitted to the city.

"We need to be on top of this," Johnson said. "We want to make everyone aware that before anything comes up before the city that we are going to vigorously fight any development in Niu Valley or Paiko Ridge."

Resident Charlie Palumbo said he feels the community has been bombarded by growth. Recent examples range from the Ho-nolulu Waldorf School's efforts to expand its campus to include a high school to the conversion of part of a neighborhood shopping center into a church. He wants to keep the ridges surrounding Niu Valley undeveloped.

"We need protection because the East Honolulu Sustainable Communities plan isn't strong enough," Palumbo said. "We, as residents, must monitor activity in our community so that we can ensure the things that we feel are important for sustainability will be there in perpetuity.

"The development (Paiko Ridge Partners) may be 10 years down the road. But it's a question of entitlements from the city and state that could give them development rights later on. I'm not averse to development, as long as it is within the urban growth boundary."

Reach Suzanne Roig at sroig@honoluluadvertiser.com.