Alexander & Baldwin Inc. plans to transform its old, fire-damaged Kahului Shopping Center into an "urban village" complex with 50 percent more commercial space below 200 to 300 residential condominiums.

The company, in a conference call with investors and analysts yesterday, said the fire that burned roughly half the center in February accelerated long-envisioned redevelopment plans for the property.

A&B anticipates initial construction will begin in 2007 after design and permitting work next year. The first condo sales are projected to occur in 2009, with completion of construction in 2010.

A company spokeswoman said A&B plans to soon share details of its plans with the community and seek public input.

The project would replace a historic property that A&B describes as the first "integrated shopping facility" west of the Mississippi when it was built 54 years ago. But poor internal traffic flow, age and eventually fire numbered its days as Maui's oldest shopping center.

A&B proposes replacing the 100,000-square-foot center with 150,000 square feet of retail and office space. About 200 to 300 condos would top the complex on 15 acres.

"This is a neo-traditional planning concept that is popular on the Mainland but has not been tried on a large scale in Hawai'i," Stan Kuriyama, president and chief executive officer of A&B's land division, said in the conference call.

Kuriyama said A&B had long been planning for eventual redevelopment of the center, and that the fire accelerated those plans.

The fire, which authorities suspect was started by a homeless person who was cooking, gutted three of the center's largest stores: Ah Fook's Super Market, T.J.'s Oriental Food Mart and a Salvation Army Thrift Store. About 20 other tenants — including Del's Farm Supply, Asian Cuisine & Sports Bar and Ichiban Restaurant & Sushi — continue operating.

Kahului Shopping Center was established in 1951 by Kahului Development Co., a predecessor of A&B subsidiary A&B Properties Inc., as part of what was then a developing "Dream City" master-planned by the company. The first residents moved into Kahului in 1950.

A&B today owns more than 68,000 acres on Maui, including agricultural, retail, office and industrial property. Among the company's retail holdings are Maui Mall, Napili Plaza and Fairway Shops.

In 2003, A&B agreed to sell Kahului Shopping Center to a California developer who planned to rebuild it 30 percent larger with 28 rental apartments for seniors. But the estimated $35 million purchase and reconstruction plan fell through.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.