A plan is in the works to possibly turn the northeast corner of 17th and O streets into a mixed-use development that could include retail stores and as many as 40 condos.

Redge Johnson, who owns the Images II building on the corner, cautioned that the project is preliminary, though, and still must clear several hurdles.

He confirmed that he has discussed with the city redeveloping the corner into retail and housing, but said he was not ready to release details because there is still a lot to be worked out with the city and things could change.

“We’re trying not to get ahead of ourselves,” Johnson said. “At this point the best I can say is it’s an idea.”

In documents filed with the Lincoln-Lancaster County Planning Department, city officials describe the project as a four-story building with street-level retail, 40 one- and two-bedroom condo units and 40 spaces of on-site, covered parking.

The city estimates the project will cost $10 million, with as much as $900,000 worth of tax increment financing to pay for public improvements.

The first hurdle for the project is a Planning Commission hearing Wednesday on whether it conforms to the city-county land use plan.

But that should be a formality, as both the Antelope Valley and Downtown Master plans have pegged that corner for mixed-use development, including housing.

The project would then have to be approved by the City Council, after which the city and developer would start negotiations on a redevelopment agreement.

Though Johnson wouldn’t speculate on a possible timetable for redeveloping the corner, he said he’s ready to start moving forward as soon as negotiations with the city are final.

In addition to “stepping through all the city hoops,” Johnson said, he also must take into account the downtown real estate market and what will sell.

“We’re trying to make this fit in with what the experts say it should be and make that fit in with what people want to buy,” he said.

Downtown Lincoln Association President Polly McMullen, who has long advocated the need for more downtown housing, said she was looking forward to hearing more about the project.

“Anything that addresses the big demand for downtown housing is welcome news to me,” she said.

Dallas McGee, assistant director of the city’s Urban Development Department, said the project, if built, would be one of the first major private projects in the Antelope Valley redevelopment area.

Though he admitted the corner may not seem like the ideal place for people to live — there’s a pawn shop on one corner, a car dealership on another — McGee said it fits with the future vision of the Antelope Valley project, which designates much of the area east of downtown as being appropriate for housing.

And it’s clear the city views the project as hopefully the first of many.

In the Planning Department documents, city officials said the project would “act as a catalyst for further private development in the East Downtown area.”

Reach Matt Olberding at 473-2647 or molberding@journalstar.com.