Just imagine what is possible at the Waikiki site, which is now home to Jefferson Elementary.

It could potentially be a cash cow for the state.

A commercial development at the Diamond Head of Waikiki could bring in millions to help repair and upgrade other public schools.

"Actually we are doing an inventory of all our schools and the condition of the schools," said School Superintendent Kathy Matayoshi.

Imagine again, what could happen if Queen Kaahumanu school moved from its current campus on Beretania Street.

Opening up the lot for private development is just one option.

Another is building a new elementary campus on the McKinley high school grounds -- possibly the Makai Diamond Head end.

Sen. Jill Tokuda wants to take a cautious approach to displacing schools and developing public land.

She proposes a pilot project managed by the lietenant governor using two  school sites yet unnamed.

"Many school sites reside on city property, and so how do we make sure we understand what we are getting into? What are the capacity issues we are coming up upon So really just taking a more prudent approach," Tokuda said.