Recently canceled plans for an innovative "learning community" in Makaha Valley could be revived, after Kamehameha Schools said Friday that it would accept original terms for the project with its two partners.

Earlier this week those partners — developer Jeff Stone and the state Department of Hawaiian Home Lands — said they would honor and accept original terms for Stone donating 300 acres if finalized by June 30.

"If Jeff is willing to gift the 300 acres to KS and DHHL, as he recently stated, KS is ready and willing to move forward to close on June 30," Corbett Kalama, chairman of Kamehameha Schools’ board of trustees, said in a statement.

If the three parties salvage the deal, it would relieve distressed community leaders who had welcomed the project first agreed to in March 2010. Moving forward together also would help smooth over the recent disagreements about what caused the deal to fall apart.

On Friday, Kamehameha Schools refuted claims Stone made as to why the charitable development plan imploded.

The organization said that obtaining potentially lucrative affordable housing credits was not a reason for trying to restructure the project.

"Affordable housing credits going to Kamehameha Schools was never a motivating factor," the nonprofit educational trust said in a statement.

Stone said Thursday that changes Kamehameha Schools made to the original agreement were key to the deal falling apart.

The original plan called for Stone donating 234 acres to DHHL and 66 acres to Kamehameha Schools. DHHL would build 400 affordable homes for Hawaiians next to educational enrichment facilities that Kamehameha Schools would develop for Hawaiian and non-Hawaiian children along the Leeward Coast.

Kamehameha Schools committed to spending around $100 million on the project.

DHHL and Kamehameha Schools were supposed to have examined the property and been ready to accept the gift by Feb. 11.

On Dec. 21, Kamehameha Schools informed Stone it was ready to accept the donation on Feb. 11. But DHHL asked for an extension to Aug. 30 because of delays with its due-diligence work.

Kamehameha Schools said Friday it proposed an alternative known as "Plan B" to buy all 300 acres from Stone for $8 million as a way to "keep the deal moving forward" so DHHL could complete its due diligence after Stone denied DHHL an extension.

Stone said he denied the extension because Kamehameha Schools wouldn’t agree to it because they preferred Plan B.

Stone said he objected to Plan B because it would have negated his gift, and he did not envision the affordable housing credits being used.

The credits issued by DHHL could be used to satisfy state or county requirements for a developer to build affordable housing.

Under the original deal, the credits were to be given to Stone, though Stone has repeatedly said that he does not need and would not use, transfer or sell the credits.

Under Plan B, Kamehameha Schools would have gotten the credits, which had the potential to be used to satisfy future affordable housing requirements that include 550 homes in Kakaako where the trust plans to build condominiums and apartments.

Kamehameha Schools has explored the possibility of using affordable housing credits in Kakaako, according to the Hawaii Community Development Authority, a state agency that governs development in Kakaako. However, the agency would have to establish rules to allow such use. At present such use isn’t permitted. There are also issues that make it unlikely that credits for DHHL homes could be used in Kakaako, according to the agency’s executive director, Anthony Ching.

Kamehameha Schools expressed hope that the original deal with Stone and DHHL can be completed. But if it can’t, Kamehameha Schools will still work to develop a learning community in Leeward Oahu — a region where the trust owns no land, and an area with the state’s highest concentration of Native Hawaiians.

"Our commitment to and vision for the Leeward Coast has not changed," Kalama said. "We have been working with the people of the Leeward Coast for decades, we are there today, and we will be there for generations to come."