Spokane Valley-based commercial real estate investor James Mulloy plans to develop a 109-room Hampton Inn & Suites Hotel in the medical district on the lower South Hill, a proposal under environmental review by the city of Spokane shows.

Mulloy heads up the project applicant, Spokane S. Medical LLC, which owns the property. He couldn’t be reached immediately for comment.

The hotel would be located on an acre of land at 617 S. McClellan, in the shadow of Providence Sacred Heart Medical Center & Children’s Hospital, the environmental application shows. The site takes up the south half of the block of vacant land between McClellan and Browne streets directly north across Seventh Avenue from the hospital.

The developer hopes to begin construction next spring, the application says.

The project would include a six-story hotel building with a total of 73,100 square feet of floor space, and a four-story parking garage with about 36,000 square feet of space. The hotel building would be up to 65 feet tall and the parking facilities would include 130 stalls, the application says.

No cost estimates are included in the application. The building permit valuation for a 106-room Hampton Inn & Suites facility constructed in 2009 was $7.5 million, although that project didn’t include a parking structure.

The development cost for a 115-room Peppertree hotel with a parking structure once planned at the northwest corner of Third and Division, less than a half-mile northwest of the envisioned Hampton Inn site, was $9 million in 2009. A smaller retail and office project now is under construction at that site, where the Peppertree project stalled in the early construction phase due to lost financing.

For the Hampton Inn project, the developer proposes to remove 12,000 cubic yards of material to prepare the steeply sloped site for construction. Some pine trees on the west side of the site would be retained, but most of the project site would be cleared of vegetation, and a portion of the site would be landscaped, the environmental application says.

Mulloy is a principal in a number of office properties and hospitality operations, including Spokane Valley-based Hospitality Associates Inc., which operates 18 hotels in six Western states.