"The Collection" calls for 397 units in a 43-story high-rise tower.
It will also include a four-story mid-rise building and townhomes.
Alexander and Baldwin is developing the Kakaako parcel owned by Kamehameha Schools.
Opposition to this project is primarily from residents of the nearby Waterfront Towers.
They worry the building will be closer than the rules allow. They also have concerns about the sewage capacity.
"We have many residential complaints about sewer gas smells that emanate through their units," said resident manager John Horvath.
"If you are going to live here, you should know you are going to live with this .The EIS said this could be addressed in 2030. That's 17 years from now. This is something to live with, in what could be a beautiful area, living with foul smells all the time,” said Kakaako resident Deborah Whisnand.
City crews have been doing work reinforcing sewer lines on Kiawe Street along where the high-rise project is to take shape.
HCDA says the city has also been trying to deal with odor issues with its sewage pump state across from Ala Moana Boulevard.
But the city believes some of the odor problems may stem from the Waterfront property itself.
Opponents sent a petition with some 300 signatures to the city, urging the mayor to pull back on the city's conditional approval of the plans.
"We are not going to back down on the permit that we issued. I believe this project that is that is being developed is for middle-income people, which is exactly why Kakaako was developed and the infrastructure was put in place," said Mayor Kirk Caldwell.
"There are particular areas where additional improvements will have to be spent, over and above the $212 million on infrastructure in the area. We expect those costs will be shared by developers on a fair-share process as projects proceed," said HCDA executive director Tony Ching.
The six-member HCDA board includes one member who lives in Waterfront Towers.
The board unanimously approved the project with its modifications to the area rules.
The board is still two members short and has been since June. The governor has yet to name replacements for the vacancies at a time when so many projects are up for approval.