The Public Land Development Corp. may soon be history, but state lawmakers are moving toward an agreement on legislation that would encourage redevelopment projects on underused public school land.

House and Senate negotiators on Friday exchanged drafts of bills that would allow a handful of mixed-use development projects on public school land that could generate revenue to modernize the state’s aging schools.

Gov. Neil Abercrombie has said his 21st-century schools plan could provide workforce housing and long-term care facilities, as well as other commercial and retail development, while bringing in money to retrofit school infrastructure.

Lawmakers have narrowed the governor’s proposal and have avoided the kind of regulatory exemptions that the public objected to in the PLDC. Abercrombie has said he would sign a bill that would repeal the PLDC, but wants lawmakers to consider other public-private partnerships.

Both the House and Senate now agree that the 21st-century schools plan should be overseen by the state Department of Education, not Lt. Gov. Shan Tsutsui’s office, as senators had initially proposed.

The House would authorize the state school board to select up to five public school properties for redevelopment, with no time limit on when the projects would be completed. The Senate would allow up to two projects that would have to be completed within five years.

Both the House and Senate would require the Department of Education to submit annual reports to the Legislature that would include timelines for the redevelopment projects and summaries of the school and community engagement efforts undertaken.

Sen. Jill Tokuda (D, Kailua-Kaneohe), the lead Senate negotiator, described a five-year time limit as "bookends" that would give the state enough time to test the concept. Senators had initially suggested a three-year pilot.

"I see the only sticking points for us at this point is putting a limit of five years and also the number of projects," said Rep. Cindy Evans (D, Kaupulehu-Waimea-Halaula), the lead House negotiator. "Those are the only two I see as big differences between us right now."

Evans said House lawmakers believe the 21st-century schools plan has the potential to be a "long-term game-changer," but a cap on the number of projects would force the state to come back and justify any expansion.

Kate Stanley, a senior adviser to Abercrombie, said the administration is pleased that House and Senate negotiators are "moving in the right direction."

"Once it gets started, it’s then much easier to come back and, having demonstrated some success, to go forward and do more," she said.

Some of the same environmental activists who opposed the PLDC are urging lawmakers to kill the 21st-century schools plan. The Waikiki Neighborhood Board, meanwhile, has gone on record opposing any redevelopment at Jefferson Elementary School, which sits on valuable property in Waikiki.