One of the last undeveloped parcels of land downtown could be the trigger for the urban renewal that the Chinatown and Aala Park areas so need.

The project is the Liliha Community Center.

It popped up in the House version of the state budget and will now go before the Senate budget committee for inclusion in the final draft of the 2014 state budget.

Although called a community center, the plan is for a one- or two-tower state office building, to house state departments ranging from the Department of Education to the Department of Health and other state agencies.

It is smack in the middle of Iwilei, so the only reason I can see to call it the Liliha Center is that you can see Liliha from there.

The property sits between the 130-unit Senior Residence at Iwilei and the state’s Department of Human Services offices in the old OR&L railroad building, which is on the National Historic Register.

On Thursday, legislators and state officials toured the site and came away excited that new construction could do a lot to improve the decidedly gritty area.

The idea for the building was first discussed in 1992, when it was estimated to cost $120 million, according to an environmental impact state prepared by Wilson Okamoto & Associates (http://goo.gl/A8fHAh).

Gov. John Waihee back then was cautious about the project, saying only, "I expect the respective legislative and governmental agencies to consider if the societal benefits justify the economic, social and environmental impacts, which are likely to occur."

Now Rep. Sylvia Luke, chairwoman of the House Finance Committee, is pushing the project forward as a way to house state agencies that are now leasing space in the downtown core.

"This is also going to revitalize the area. It will link the agencies and rebuild parts of Chinatown," Luke said.

According to the 22-year old EIS, portions of the property were once an ancient pond called Kuwili Fish Pond. By 1901, material dredged out of Nuuanu Stream and Honolulu Harbor filled the fish pond. Two railroad terminals were built on the site. Later, the state acquired the land as the result of a 1961 lawsuit with Dillingham Corp.

The need for more state office space is not a new thing. Back in 1992, the state estimated that it was leasing 648,000 square feet of downtown office space and needed another 145,000 square feet.

Today, Luke says the state leases $5 million worth of downtown property each year.

"If you consider this to be something like a 10-year project, and then imagine what lease rents would be in a decade if we don’t build this," Luke said.

Obviously, if you put two 10-story towers of state workers in the River Street part of Chinatown, it will be a great economic engine for new urban renewal.

The added benefit, according to Rep. Gregg Takayama, who was also on the site visit, would be that the city’s planned rail line runs between the senior housing and the proposed civic center.

"It gives everyone a lot more transit options," Takayama said.

Dean Seki, state comptroller, called the plan "a no-brainer."

The hope now is that the obviously good idea can stay aligned with state leaders changing priorities long enough for actual construction to appear.