Kamehameha Schools will build a more than $30 million retail complex in Kakaako, the largest project so far in a long-envisioned plan to redevelop the urban Honolulu area.

The 60,000-square-foot specialty retail center will be built on the block bordered by Coral, Keawe and Auahi streets and Ala Moana Boulevard. The plan includes a 225-stall parking garage along Keawe Street. Groundbreaking is scheduled for January 2013.

"This is a big milestone. It’s our first major retail component and our first full-block project," said Erin Kinney, a Kamehameha Schools spokeswoman.

The project — which includes street-level improvements, a central plaza and courtyard with paved pedestrian areas — is expected to be completed by fall 2014.

The shops and restaurants will surround about 10,000 square feet of an open courtyard. There will be space for between 20 and 30 tenants, not including artisan kiosks, with an "eclectic mix of entertainment, restaurants and retail."

The state’s largest private landowner said it is seeking open-air restaurants and pubs, apparel retailers and emerging chefs, as well as creative businesses such as graphic designers, architects and technology innovators.

"It’s also really built around the pedestrian spaces and courtyard and will have outdoor seating and live music to really take advantage of the atmosphere of the place," Kinney said. "We’ll have restaurants and stores that will spill over into the common courtyard area where people will be able to sit, eat and gather and just be able to experience and explore."

About 40 percent of the gross leasable area is slated for retail, 40 percent for restaurants, as well as 10 percent for artisans and 10 percent for offices.

Kamehameha said it will build upon the existing structures of the nearly 50-year-old buildings.

The block is currently home to 18 tenants, including Hank’s Haute Dogs, Chai Studio and C4 Waterman, some of which are staying and others that are still in negotiations with Kamehameha.

"This has been greatly anticipated. Plans have always been in the works but now it’s come to fruition," said Hank Adaniya, owner of Hank’s Haute Dogs at 324 Coral St., where he’s working with the landowner on creating a 1,700-square-foot beer garden in the parking lot as an extension of the restaurant’s outdoor seating. "I’m excited about this project."

Some tenants will have to go dormant for a period, said Kinney, adding that the landlord will help tenants relocate within the district.

The retail center is part of Kamehameha’s master plan to redevelop 29 acres it owns in Kakaako. The nine-block master plan, approved by the Hawaii Community Development Authority in September 2009, envisions a vibrant, artsy urban neighborhood that includes condominiums, townhomes and lofts.

The landowner is in the process of renovating 660 Ala Moana Blvd. and will begin conversion of 680 Ala Moana Blvd. from offices to 54 rental loft apartments reserved as work-force housing.

The loft project is included in the $30 million budget.

In addition, Kamehameha has been working with the community on public art and beautification projects, including a giant 30-by-40 foot art mural recently mounted on the corner of Cooke and Pohukaina streets.