A company that produces artistic light displays in Japan wants to establish a similar commercial production year-round in Hawaii on a big piece of Kakaako Waterfront Park.

Illuminage Group Inc. has proposed leasing a third of the 27-acre state park on Oahu’s South Shore to operate themed light displays for paying guests.

But converting the public park area into a commercial venture — a $4 million theme park that would eliminate public access even during the day — is raising some concern.

Illuminage wants to lease 9.4 acres on the Ewa side of the park from the Hawaii Community Development Authority, a state agency that developed and owns the park.

The agency’s board agreed Wednesday to allow staff to discuss terms for such a deal, including how much lease rent the agency would receive. However, any approval of a lease would not be considered until a more detailed presentation by the company, two public hearings, an environmental review and community consultations are completed.

Anthony Ching, HCDA executive director, said a light park could make better use of part of the park, which he said is underused.

"Day or night, this is not the most prominent part of the park," he said. "This area does not receive very much use."

Ching also said that a deal with Illuminage would generate revenue for the agency that helps pay for park operating expenses that run more than $600,000 a year.

But commercializing such a big portion of a public park didn’t sit well with Michelle Matson, a representative of the Oahu Island Parks Conservancy, who commented on the proposal at the HCDA meeting.

Matson said the area, which includes a small amphitheater and a large hill, provides nice views and is popular with kids sliding down the hill on pieces of cardboard.

"Many families love to go to this hill," she said.

The area Illuminage proposes to use does not include the park’s bathrooms, the Ehime Maru memorial or the paved promenade fronting the ocean.

The company envisions putting on themed light displays that would change during the year. The displays, created from LED lights powered by a photovoltaic system, would include both passive and active exhibits. For instance, Ching said, lights may interact with people moving through the display.

Illuminage is seeking a 25-year lease with a 10-year extension option, and indicated it wants HCDA to help finance or invest in capital improvements needed for the light park.

The company said it would spend $4 million on the attraction.

Ching said the company has talked about admission rates roughly in the $6 to $18 range. He said it is reasonable to expect that such an attraction could draw 500 people a day, or 182,500 a year. That’s close to the 168,657 people who visited Ho‘omaluhia Botanical Garden in Kaneohe last year.

By further comparison, about twice as many people last year visited the Waikiki Aquarium (333,607), and four times as many visited the Honolulu Zoo (667,981).

"We believe there’s an interest and a potential return," Ching said.

Illuminage was established in Hawaii last year as an affiliate of Japan Illumination Association, a light distribution company that was established in 2000 and branched out with light installation productions and events.

"With the experience and expertise from JIA, Illuminage Group Inc. is ready to spread illumination ‘events’ throughout the world," the company said on its website.

Illuminage set up a free holiday display at the 3-acre Makai Gateway Park next to Kakaako Waterfront Park last year for about three weeks during the Christmas season.