A master-planned Big Island community for 1,100 homes breaks ground today, and will jump-start part of a long-planned University of Hawai'i community college campus in West Hawai'i.

The roughly $400 million North Kona project called Palamanui has been in the works for several years on a site mauka of Kona International Airport, and will add jobs, people and traffic to the growing region.

Some residents complain that too much growth is occurring in the area without adequate road construction and other infrastructure support.

But Palamanui — which includes a 120-room business/leisure hotel, a commercial center with retail and restaurants, a 70-acre business park and a 20-acre regional park — has drawn support because of its public education benefit.

As part of a county zoning agreement approved last year, the developer will build 20,000 square feet of school facilities on adjacent state property that's intended to become the community college campus.

Palamanui's developer, a partnership among investment brokerage firm owner Charles Schwab, Kona contractor Guy Lam and Texas-based Hunt Development Group, also will provide utility infrastructure to the state's 500-acre campus parcel. The combined cost for the building and infrastructure is $5 million.

The school facilities are expected to be completed in 2009, and will allow UH to relocate its West Hawai'i operation from 13,500 square feet of rented space in a Kealakekua shopping center.

John Morton, vice president of community colleges for UH, said moving ahead with bigger campus development plans remains uncertain, but the starter facilities to be provided by Palamanui represent a significant advance.

"It establishes our presence at our preferred site, and in that sense it's a great asset for us," he said.

The UH Board of Regents in 1991 chose the 500-acre site for a West Hawai'i campus, but planning has been slow and unsteady in part because alternate sites have been proposed.

Two years ago, the Board of Regents selected an Atlanta-based development team to build community college facilities in Kona and Hilo in return for rights to develop other parts of the campus sites. But that private-public partnership hasn't resulted in a detailed proposal or timetable because UH has yet to receive title to the 500-acre site from the Board of Land and Natural Resources.

"That's pretty much on hold," Morton said.

Also in 2005, the Legislature appropriated $18 million for planning and infrastructure work on the Hilo and Kona sites, but Gov. Linda Lingle has not released the money. The cost of initial construction of the two campuses has been estimated at roughly $100 million.

Palamanui's contribution will help take care of some infrastructure needs and establish initial classrooms and offices for a 75,000-square-foot first phase for the Kona campus.

"We're going to make it come to fruition for them," said Palamanui partner Lam. "Hopefully they can build on what we start."

UH President David McClain said in a statement: "A 15-year dream of creating a permanent campus for people on the west side of the Big Island who are eager to learn has become a reality. And our neighbor just across the road is investing in our students and our future success."

Palamanui has been in the works for several years and previously was sometimes referred to under a prior development partnership involving Schwab and Lam called Hiluhilu Development.

Schwab and Lam bought 1,000 acres of land in the area in 1999, and in 2002 developed a residential subdivision of 80 3-acre lots called Makalei Estates above what is now the Palamanui site.

The 725-acre Palamanui property originally was intended for 845 homes, a business hotel, commercial space, parks and an 18-hole golf course. Also, it was proposed that UH facilities would be on the Palamanui site and rented to the state until the school developed its own campus.

That plan was amended to build the school facilities on state land and have the buildings owned by UH. Also, more homes were added, and the golf course was eliminated because of perceived weak demand and high cost.

"There is no market for a golf course," Lam said. "We're not going to do a high-end golf development. It's more moderate-priced housing. There are plenty of places to play golf."

Two years ago, after public hearings,the developer obtained approval from the state Land Use Commission to reclassify the property — largely old lava flows covered with clumps of vegetation — from conservation and agriculture to urban use. County zoning approval followed last year.

Hunt Development, a large developer active in Hawai'i, joined Schwab and Lam as master developer about a year ago.

Lam said that Palamanui will be built over 10 years, with the first homes delivered in early 2009.

Home prices should run from the $400,000s to $1.2 million and include house lots, single-family homes and townhomes. At least 20 percent of homes must be sold at prices that meet county standards for affordable housing.

The hotel is slated for completion in mid-2009.

A commercial center is designed with 70,000-square feet of space for restaurants, retail and other businesses. The 70-acre business park is intended to provide space for other office-type uses, not industrial operations.

Other parts of the project include preservation of 55 acres of lowland forest and archaeological and cave sites, and construction of a mauka-to-makai road from Queen Ka'ahumanu Highway to Mamalahoa Highway to help ease traffic between the airport and Kailua, Kona.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.