Calistoga city officials have given preliminary approval to a plan to turn what was long ago a local hospital into the latest resort catering to high-end vacationers.

“People travel to New York to see the Empire State building, or to St. Helena to see the Culinary Institute,” said Neal Shafer. owner of the building known as the Francis House. “We want to make this project the Empire State building of the Napa Valley.”

Shafer and project architect Paul Kelley unveiled their plans to transform the former hospital property into a 25-room inn and spa featuring several bungalow-type buildings, a new dining facility, several cold pools — and to the chagrin of some nearby residents — parking space for about 26 vehicles.

The few concerns expressed either by the Calistoga Planning Commissioners or the public at an Aug. 27 meeting focused mostly on parking, public safety, traffic on Myrtle Street and the drainage of storm water from the project.

The developer said he plans to address solutions to each of the concerns as his team progresses through the public hearing process in coming months. Shafer said his plans are to make his project, especially the restored Francis House, available to locals, either through day passes or hosting special tours that would allow Calistogans to enjoy one of the city’s best-known landmarks.

Representing Napa County Landmarks Commission, Juliana Inman praised the project, saying the property, although considered historic has long been on the group’s “hall of shame.” The Francis House has been in steadily deteriorating conditions for decades.

“We would love to see this magnificent property restored,” Inman said. “This project has the potential to become one of the jewels of this county.”

The commission’s approval of the design, pending mitigation of the concerns, marks the first significant public step the project has taken since Shafer took possession of the property in late 2007 from former owner Don Selvey after more than a year of court battles.

The two had been in a dispute for months over the terms of a contract under which Shafer was to buy the 120-year-old stone building modeled after the opulent mansions of Paris. The property has long been a prominent but decaying member of the National Register of Historic Places.

A judge’s ruling in late 2007 outlined terms in which the sale was to be completed, essentially giving Selvey $650,000, minus $83,131 in attorney fees and court costs, along with three parcels of land, two in Napa County and one in Shasta County, in exchange for the Francis House and the three parcels of land on which it sits.