Ambitious plans to build “urban villages” in Kakaako have been approved for the decades ahead. Developers have been eyeing the area for nearly 30 years but approval on framework guidelines given on Wednesday by the Hawaii Community Development Authority will hopefully spur more ground-breakings at a time when economic activity is most welcome.

Dilapidated buildings in some of the 450 acres bounded by Ala Moana Boulevard and King, Piikoi and Punchbowl streets were replaced in the early 1980s by structures stretching from Restaurant Row to Nauru Tower, including condominium buildings with about 3,500 housing units. Superblocks with 40-story buildings envisioned under the old plan never materialized, and reasonable revisions now have been unanimously approved by HCDA’s 11 board members.

Gov. Neil Abercrombie should approve the updated plan before the end of this year.

Revised rules for renewing the development area amount to a major overhaul, according to Anthony Ching, HCDA’s executive director. The old rules adopted in 1982 were designed to replace the industrial area with a mix of high-rise residences and businesses, with futuristic superblock towers linked by elevated pedestrian passageways, and public parks atop parking garage rooftops.

Developers were less than excited about that plan; this updated schematic blueprint emphasizes moreaesthetically pleasing neighborhoods containing elements for people to live, work, shop and play at ground level.

From a housing standpoint, a significant concession was made to developers by relaxing a longtime requirement to keep moderate rental rates in place for 15 years, putting at least 20 percent of units up for sale or rent to residents making no more than 100 percent of Honolulu’s median income.

The new rule retains the 15-year term for moderately priced units, but HCDA developers agreed to offset the requirement by allowing developers to build fewer rentals and price them higher: 15 percent of units to be offered to residents earning up to 140 percent of median income. Two major developers — Kamehameha Schools and Howard Hughes Corp. — will play by the old rules because their plans were approved two years ago.

While many present buildings erected in the past three decades will continue to stand, sidewalks would be widened and be adorned with trees in some areas that have been seen as “a run-down commercial area.” The authority estimates $126.5 million will be spent on infrastructure upgrades, adding to more than $200 million invested similarly over the past 30 years. The area’s residential population is projected to rise from 20,000 to nearly 35,000.

Development of this large area has been stalled by financial constraints required by HCDA. Hopefully, these changes will foster a betterdesigned urban core, with requirements and concepts attractive enough to lure developers back to the scene at an opportune time. Both the area and the state’s economy in the years ahead stand to benefit greatly.