Hawai’i Pacific University held a blessing and ceremonial groundbreaking Wednesday for its planned conversion of Aloha Tower Marketplace into a mixed-use complex that includes campus facilities, student dorms and retail.

The $40 million renovation is projected to finish next year.

About 200 construction jobs are expected to be created by the work that includes converting the second floor of the 165,000-square-foot marketplace at Honolulu Harbor into dorms for 300 students.

Four marketplace tenants — Gordon Biersch Brewery Restaurant, Hooters, the Star of Honolulu tour boat and The-CAB — remain open during the construction work.