Castle & Cooke Homes won state approval today for most of its proposed Koa Ridge community between Mililani and Waipio.

The state Land Use Commission voted 7-1 to approve an initial phase of the project with 3,500 homes, a hotel, medical campus and commercial space by reclassifying 576 acres from agricultural to urban use.

As for a 192-acre second phase with 1,500 homes, the commission said certain conditions would have to be met before the parcel is urbanized. Presently, much of the infrastructure providing access and utilities to the site relies on uncertain plans by another landowner, Kamehameha Schools.

Completion of the first homes could happen toward the end of 2012 if other approvals, including county rezoning, are obtained.

Bruce Barrett, executive vice president of residential operations for Castle & Cooke Homes, said the company is satisfied with the LUC’s decision.

"We’re delighted to bring this to a conclusion," he said.