A proposal to eventually dissolve the Aloha Tower Development Corp. will not become law.

The bill died Friday when a conference committee did not act on it before a midnight deadline.

The Aloha Tower Development Corp. is the state agency created nearly 30 years ago to develop the waterfront property near Honolulu's landmark Aloha Tower.

An audit this month said the agency has completed only one phase of its original mixed-use development plan, the Aloha Tower Marketplace.

The agency also was ordered to pay a $1.55 million legal settlement last year over a failed deal to build a waterfront hotel and condominiums.

The bill would have transferred agency's responsibilities to the Hawaii Community Development Authority and Department of Transportation.