The requirement, which critics said has hindered development in the area, was introduced in 1982. The HCDA yesterday voted instead to encourage developers by allowing them to add more space to a project that includes room for light industrial businesses.

"Too many projects were scuttled because of the industrial requirement," said Francis Oda, chairman of Group 70 International, an architectural and planning firm. He did not mention the projects by name, but one major one was the Life Care Services Inc. health care residential project on the former Asahi Juyken property at Piikoi Street and Kapiolani Boulevard. The land remains vacant today.

Mitch D'Olier, president of Kakaako landowner Victoria Ward Ltd., said that small lots were particularly hard hit by the light industrial requirement.

Large projects such as Ward Warehouse and Ward Centre, built before the light industrial requirement took effect in 1982, also would have needed much more space to fulfill the industrial requirements, he said.

Problems of noise, odors, security, and higher construction costs for industrial users were cited by the HCDA staff as reasons to drop the requirement.

Don Bremner, vice president for the 100-member Kakaako Improvement Association which includes both large and small landowners, testified in favor of the change but also expressed hope that a light industrial zone can be created in Kakaako.