Developers of the commercial and business area surrounding the Waipahu mill site are constructing a new road that should help ease the traffic flow for motorists moving through the heart of what was once the O'ahu Sugar Plantation.

Avalon Development Co., which is putting up the Plaza at Mill Town commercial center and selling industrial lots at the Sugar Mill Industrial Center subdivision, began work last week on the two-lane, 1,230-foot long Malakeke Street. The new road will connect Mokuola Street with Waipahu Street near the entrance to Waipahu Cultural Park street.

The new road, targeted to open by the first week of October, is expected to provide some relief at the Waipahu-Mokuola and Waipahu-Waipahu Depot Road intersections to the east.

"You're alleviating a lot of the traffic problems along Waipahu Street," said Stephen Kothenbeutel, Avalon project director and development associate.

"It's a very daunting, very dangerous road to be on. So by having a connection there, what you're doing is allowing for traffic to get off of Waipahu Street if they want to skirt off of it to get onto the H-1 (through Paiwa Street)."

"If they can relieve some of the traffic, that would be a benefit," said Richard Oshiro, chairman of the Waipahu Neighborhood Board. "A lot of people use Waipahu Street."

Construction of Malakeke Street is a requirement for the zoning of what's known as the Mill Town subdivision, initially developed by A&B Properties and since taken over by Avalon.

Kothenbeutel said the centerpiece of the area will be the $18 million Plaza at Mill Town, a two-story commercial complex that will include restaurants, at least one bank, stores and offices. With 34,000 square feet of leasable area, it's about the same size as the 35,000-square-foot Ewa Pointe Market Place in 'Ewa Beach.

About 50 percent of the center has been leased but Kothenbeutel declined to provide names of tenants citing confidentiality agreements. The center is expected to open by the beginning of 2008.

The development is expected to spruce up an area that's already been revitalized by the recent opening of the Leeward YMCA, which took over the actual mill site itself, and the Filipino Community Center at the corner of Mokuola and Waipahu.

"You'll have some form of a nightlife there, which is good, because it's such a dark area during the evening time," Kothenbeutel said.

There's also construction activity happening on the mauka and 'Ewa sides of the Mill Town subdivision. Companies that have purchased lots in the Sugar Mill Center and what's known as Mill Town Business Park Phase 1B are starting to develop their sites. The completed Phase 1A includes a Wholesale Unlimited outlet, Fujifilm Hawaii and a Golden Coin Bake Shop and Restaurant.

Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com.