WAILUKU - Emmanuel Lutheran Church gained a key Maui County endorsement this week in its bid to more than double the capacity of its school with a new campus along Honoapiilani Highway, just south of the island's urban core, The Maui News reported today.

The Maui Planning Commission on Tuesday unanimously supported a zoning change from agricultural to public/quasi-public district for the school and church project. The move, which was endorsed by the county Planning Department, will next go before the Maui County Council.

The project already received approval from the state Land Use Commission with no objections from the public.

The preschool through 8th-grade school, along with the church, currently sits on just 1.3 acres at 520 W. One St. in Kahului. But the K-8 school is at full capacity with 174 students and had to turn away 20 applicants at the beginning of this school year, said Emmanuel Lutheran School Principal Ann Bergman. The preschool has about another 40 students.

When the plan - which has been 11 years in the making - becomes a reality, Emmanuel Lutheran School will be able to serve up to 500 students on the Wailuku property's 25 acres.

"We would love to be in our new facilities for the 2010-2011 school year," Bergman said.

Emmanuel Lutheran wants to build its new campus and church in three phases. The project could cost $20 million or more, said church congregation President Richard Sudheimer.

The church purchased the property off Kuikahi Drive, makai of Honoapiilani Highway in 2002 for $625,000. Phase I is expected to cost up to $10 million and encompasses the new school as well as sports and recreation fields, Sudheimer said.

So far, the church has received about $640,000 in pledges and donations, he said.

The fundraising continues, but financing is in place to move forward with the new school, Bergman said.

Phase II is a gymnasium and specialty classes, such as music and science, she said. The third and final phase would be the church, which could have a steeple up to 40 feet high. None of the buildings would be more than 35 feet high.

The campus and church will face the ocean, so Maui Planning Commission Chairman Jonathan Starr expressed concern that the rear view of the architecture from Honoapiilani Highway be pleasant.

The project planners agreed to construct "landmark" quality buildings.

"The driving force behind this school is the staff's dedication to the children and families," said Wailuku resident Lois Bisquera, who has two daughters at the school.

Bisquera, the county's assistant public information officer, said she was testifying on her own behalf on her day off. She said Emmanuel Lutheran teachers love God and instruct in a gentle but firm manner. The school includes non-Christian families who are treated with respect, she said.

County planner Jeff Dack said county planners recommended approval of the zoning change with a dozen conditions, such as reusing water for irrigation, composting of waste material and making certain that regular traffic does not mix with the students.

In other commission action:

* The owners of Hanzawa Store in Haiku received unanimous approval for land-use changes to develop three small commercial buildings and create two residential lots nearby.

Owners Matt and Sandy Daniells have said the change would also allow his family to expand the 90-year-old store and make it more competitive with "big box" retailers in Kahului.

The couple won initial approval to get the 2-acre site rezoned from interim to business-country town as well as a state land-use district boundary amendment from agriculture to urban. The county Planning Department supported the proposal.

The zoning change still needs approval from the Maui County Council.

A number of neighbors spoke in favor of the store expansion, saying Hanzawa is a community asset that supports local farmers and provides quality products and gasoline at affordable prices. The change would allow the family to add 800 square feet to the existing store for storage and office space, as well as the development of three new commercial buildings on Kaupakalua Road.

Daniells has said he'd look for local businesses to occupy the space, such as a coffee shop, small hardware store or a veterinarian.

More than two years ago, the Hanzawa Store project stirred up controversy with some neighbors expressing concern it could increase traffic and lead to more development in the rural community. But no one spoke out against the expansion Tuesday.

"We're talking about saving a jewel," said Dave DeLeon, a Haiku resident and Maui Realtors Association representative. "If they are not allowed to expand, they will die."

* The commission Tuesday also received formal notice from Marriott Ownership Resorts Inc. that it is not moving forward for now - as already announced - on its plans to redevelop the Maui Lu Resort on South Kihei Road.

Planning consultant Chris Hart & Partners Inc. notified the commission that Marriott would be holding off on taking ownership of the resort's special management area permit until there are improvements in "the current challenges in the U.S. financial market."

Marriott has halted or delayed plans to build or refurbish resort properties across Hawaii. However, Chris Hart noted the company still has more than two years before the current special management area permit expires. The permit is needed for the project to move forward.

* Chris Hamilton can be reached at chamilton@mauinews.com.