KAPOLEI — There were smiles and optimism yesterday at a blessing held on the grounds of the future University of Hawai'i-West O'ahu campus.

However, UH officials are still unclear on where or when they will get money to construct buildings on the campus.

The Legislature agreed to allocate $35 million for the project in 2007 after years of denying any funding. Gov. Linda Lingle, a longtime UH-West O'ahu proponent, signed off.

But that money will only be enough to lay down the infrastructure — water and sewer lines and other utilities — for the project, UH-West O'ahu Chancellor Gene Awakuni said after the ground-blessing ceremony.

A deal that would have brought $100 million to UH-West O'ahu fell through last year when Texas-based Hunt Development backed out of an agreement to buy 298 acres at the perimeter of the campus, citing the recession as the reason.

That money would have been enough to pay for construction of the 41-acre, five-building Phase 1 of the campus.

Awakuni, however, remains hopeful that other money will be available soon enough to open the first Kapolei classrooms by spring 2011.

"We don't have all the money but we're very optimistic that we'll raise revenues from other sources," he said.

Original plans for Phase 1 consisted of five buildings.

"But if we can only build one building, we'll build one building," he said.

Several deals are in the works.

U.S. Rep. Neil Abercrombie, D-Hawai'i, recently put in a request for $30 million in federal public works funding, Awakuni said.

As a result, UH-West O'ahu has delayed a request for bids from developers to buy 55 acres of commercial property across North-South Road, which Awakuni believes would bring in $40 million.

Depending on how successful the push for federal funding is, the university may offer up the land in the form of a long-term lease rather than a fee simple sale, Awakuni said.

Awakuni said there is strong interest from private developers seeking to buy portions of the 298 acres that had been scheduled to be sold to Hunt. The land is along the city's mass-transit line and near a Department of Hawaiian Home Lands development that includes plans for a regional shopping complex. The state, meanwhile, is independently constructing the key arterial North-South Road, expected to be done early next year.

"We get calls just about every day," Awakuni said.

The university is in negotiations on a partnership with Tokai University that could also help in building the campus, Awakuni said. There was little mention about the lack of funding during yesterday's ceremony, where speakers focused on the need for the campus.

"This will not just be a series of buildings, this is about the future of this region of our state," Lingle said. "It's about access to education here in West O'ahu."

UH President David McClain said that UH enrollment has been growing dramatically. "And you know where much of the growth is going to come in the future — it's going to come from right here in this community."

"Despite the multitude of challenges we've encountered over the past few years, we've come to this point," Awakuni said. "UH-West O'ahu here in Kapolei is on the threshold of becoming a living, breathing reality. We'll become the focal point É the center for all activity in this area."