The local zoning board has set February 17 as the date for a special meeting to hear the proposal by Spring Creek Holding Co., a Canadian company, and Metairie Corp. to turn part of the building, known locally as "the dungeon," into 360 residential condos. The plan includes building 372 townhouses on the nearly 600 acres surrounding the main building, according to Al Warrington, chief operating officer of the partnership. The estimated price tag for the project is $29 million.

If Spring Creek and Metairie get the necessary approvals, construction could start later this year. The partners expect the makeover to take four years, according to Warrington.

Under plans that have been released by Spring Creek and Metairie, the initial phase of converting the main building into a combination of the 360 condos while retaining a hotel component would be accompanied by the construction of 150 residential units on a 70-acre site adjoining the existing hotel. The separate complex would have its own clubhouse and recreational facilities.

The second phase calls for another 155 units to be built on a separate site. The third phase calls for another 51 units on 20 acres surrounding the 27-hole golf course that's part of the existing property. The last phase would add another 16 townhouses on a three-acre site. The project still faces some legal challenges, notably a series of lawsuits relating to control of the property and its development rights.

The property is located across Route 94 from the Mountain Creek ski area in Sussex County. Also nearby is the mixed-use village being developed by Intrawest, owner of the ski area, a project that consists of retail, residential and related uses. Intrawest plans to build a total of more than 1,100 residential units on its property.