Developers of a planned Waikiki time-share or residential condominium tower at the 'ewa end of Kuhio Avenue recently filed a draft environmental assessment to move the project toward a planned 2008 completion.

The environmental assessment filed earlier this month with the state provides an update on the roughly $50 million project slated for a vacant parcel once occupied by Hula's Bar & Lei Stand.

Called 2121 Kuhio, the high-rise plan was publicly disclosed in March 2004. The developer, K3 Owners LLC, said in its environmental assessment that it still has not decided whether the 300-foot tower will be for time-share or residential use.

The tower, regardless of use, would include a roughly 10,000-square-foot restaurant complex and 325 parking stalls that include 92 required stalls for the neighboring 2100 Kalakaua retail complex housing Tiffany, Gucci and other luxury stores.

To develop 2121 Kuhio, K3 Owners still needs a Waikiki special district permit and a zoning change from resort commercial to resort mixed-use.

The project has drawn concern about increased traffic and blocked views mainly from residents living in the nearby Four Paddle high-rise and the nearby 24-story La Casa condo.

The development site was previously slated to become a three- to five-story retail complex envisioned in the late 1990s as a future phase of 2100 Kalakaua. But that market since has weakened.

K3 Owners, which includes San Francisco-based Belrad Group LLC and principals of 2100 Kalakaua developer Honu Group Inc. of Honolulu, revised the development plan to capitalize on Hawai'i's surging tourism and housing markets.

K3 Owners said amending the zoning to allow a residential or time-share high-rise would result in 50 percent open space on the site as opposed to 23 percent required under existing zoning that would allow a commercial high-rise.

The developer also said a residential or time-share tower would create less traffic than the previously envisioned retail complex.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.