Envisioned since 1983, a large Beacon Hill development could start next spring with the first-phase construction of a $25 million-plus, 256-unit townhouse-and-apartment complex at the base of that hill in East Spokane.

Beacon Hill Spokane One LLC, owned by Spokane businessman Pete Rayner and his wife, Linda, is seeking final plat approval for a 22-acre development, called The Vistas at Beacon Hill.

A different developer for that project in 2005 received preliminary plat and planned unit development approval from the city of Spokane for 268 multifamily units, says Betsie Richardson, a project manager for Beacon Hill and one of Rayner's daughters, but that project never came to fruition.

Richardson says a significant step toward starting the development happened in May when Beacon Hill Spokane One LLC bought the 22 acres for $1 million from Everett, Wash.-based Coastal Community Bank.

Richardson says details such as road access approved for the previous developer and engineering plans still need to be finalized, but "the dialogue with the city is very positive."

She adds, "That's the front door of the greater Beacon Hill property. It all will be incorporated into the entire Beacon Hill Properties development."

Beacon Hill Properties Spokane, owned by Pete Rayner and business partner Dave Baker, is envisioned to have about 1,000 residential units that would be built in phases on 182 acres, which is uphill land adjacent but separate from the 22 acres. The l82 acres is planned to have single-family homes, multi-family units, and retirement housing located northeast of Esmeralda Golf Course, about a mile east of Market Street via Wellesley Avenue.

The 22-acre site was formerly what East Spokane residents called the camel farm because of exotic animals kept there until the mid-2000s. Richardson says Beacon Hill Properties plans to build 116 townhouse units in fourplex buildings and 140 apartments on that property, which at 256 units is slightly lower than the number of approved units on the preliminary plan.

Richardson says the earliest focus of The Vistas site will be construction of townhouses, to be built on terraced levels on the hill so that they all have views west toward downtown Spokane. The apartments are planned for development closer to Havana, to the west and downhill from the townhouses, she says.

Coastal Community Bank also recently provided financing toward development of both The Vistas at Beacon Hill and the Beacon Hill Properties developments, Richardson says. The first phase of roads, curbing, sewer, and water infrastructure is estimated to cost about $2.5 million.

Within that infrastructure, Richardson says Beacon Hill Properties plans to build a water booster station, at an estimated cost of about $450,000, which city officials have required for development of the site. Rayner previously disputed that condition in a bid last year to build a then-proposed 300 residential units as a first phase of the Beacon Hill development.

Richardson says the booster station will be built just below an existing water tower, and Rayner also has deeded 3 acres to the city about 300 feet above the tower for a future reservoir tank system. Currently, the only development on Beacon Hill is the Beacon Hill Events center, which Rayner owns with another daughter, Ellie Aaro.

Richardson says Beacon Hill Properties also might seek tax-increment financing, which is a state-authorized economic development tool used to pay for publicly owned streets, sewers, sidewalks, parks and other improvements. It might apply for the TIF funds through the Northeast Public Development Authority board, she says.

In December, the Spokane City Council approved an ordinance to create the Northeast Public Development Authority, and it was scheduled earlier this week to confirm board members. The PDA is tasked with carrying out specific land and economic-development activities and can help facilitate public-private partnerships and financing for economic development.

However, it was established without an identified source of revenue. PDAs often are set up following the transfer of city-owned land or properties of other entities with existing uses that generate rent or other fees, or with the idea that the properties will be sold. Until an income source is identified, the PDA will be limited in what it can do in the early stages, city documents say.

As part of the 182-acre site, Richardson adds that her father also wants to keep some natural areas intact and to enhance a trail system on Beacon Hill that is popular with mountain bikers.

For the entire area, she says Beacon Hill Properties wants to build a system of parks, paved and natural trails, and an outdoor amphitheater there.

Richardson also says that Beacon Hill Properties hopes to work with city planners to approve a different main access road from Valley Springs Road into the 22-acre parcel. She says Beacon Hill Properties would prefer a main access that would tie in from Valley Springs toward the east end of the development.

The only approved access roads are situated below the proposed apartment site, she says.