KINGSTON — Since the Kingston Inn burned down Sept. 20, 2005, owner Michael Prestley can hardly go anywhere in town without getting stopped repeatedly and asked when or if he’ll rebuild the former anchor of the downtown core. He’s had to fend off rumors, too, that the property had been sold, possibly to Washington State Ferries.

But the rumor mill can finally grind to a halt, much to Prestley’s relief. A plan has finally been hatched.

Prestley announced that he and co-owner Steve Dowen, are developing a new Kingston Inn with underground parking that would be topped with six luxury waterview condominiums.

The Kingston Sound View Condominiums and the Kingston Inn Restaurant and Lounge are off the drawing board and ready to become a reality.

Prestley said he was excited to finally share details of what’s in the works.

“We have had a tremendous amount of support on rebuilding the Kingston Inn and everyone has been asking when this project will be complete,” Prestley said. The owners have been working hard the last six months to see the project through its design phase.

The three-story building would hold a 5,000-square-foot restaurant and lounge, recreating a similar floor plan to the previous Kingston Inn. Like the former building, the restaurant would have a deck overlooking the ferry terminal and Puget Sound that will be “very, very big” with room for 15 to 20 tables, Prestley said.

The Kingston Inn would be topped with six condominiums ranging in size from 1,800 to 2,000 square feet. Two of which would have 515-square-foot decks overlooking the Sound. Each would be unique, Prestley said, and feature room service and generator power.

Both the restaurant and condominiums would have a complete fire-extinguishing system including sprinklers and fire alarms, he emphasized, as required by Kitsap County code.

Prestley and Dowen plan to pre-sell the condominiums to fund the building, designed by Merrick Lentz Architects of Bellevue. Once they are sold, Prestley said, they can move forward with getting it built. There is no estimated completion date yet. They have had a pre-application meeting with Kitsap County and will now move into permitting phase.

“He’s got a long ways to go,” said Port Commissioner Pete DeBoer. “The process of permitting in this county needs to get streamlined.”

The pre-sale of the condominiums will get underway soon with prices ranging from $885,000 to $1.2 million. A Web site with detailed renderings of the building and information on the condominiums will be unveiled this month at www.kingstonsoundviewcondos.com.

“I’m not sure if Kingston is ready for million dollar condos,” DeBoer said. “It’s a pretty aggressive plan. I hope he can do it.”

“I’ve heard variations to the story,” said Kingston Revitalization Association member Karen Ross. “Everybody in Kingston wants the Kingston Inn back. For the community, that part is good.”

Prestley said they had originally designed and completed surveys for a new Kingston Inn without the condominiums, on the same footprint as the previous restaurant.

“After demolition costs, asbestos removal, and ongoing residual bills,” Prestley explained, “building replacement costs exceeded our ability to build and operate the Kingston Inn. Menu prices would have been very expensive.”

“I can’t charge $29 for a dinner at the Kingston Inn,” he said, noting that he hopes the menu in the new restaurant will be very similar to what was previously served, with about the same prices.

Prestley said that it took nearly eight months for the insurance company to reimburse them for the loss.

The Kingston Inn fire was determined to be “caused by an electrical short in a junction box up in the second-level attic area,” according to Kitsap County Fire Marshal David Lynam. County code, Lynam said, requires that restaurants install sprinkler systems if they exceed 5,000 square feet or are in excess of a 100-occupant load.

The Kingston Inn property is zoned as Urban Village Center, which designates a compatible mix of single- and multi-family housing that is multi-story and promotes focal points for a neighborhood identity. The preferred development in the UVC, according to the Kingston Sub-Area Plan 2005 Update, is commercial use on the ground floor of a multi-story structure with multi-family residential units above with up to 18 units per acre.

“The process for a structure of this size with engineering, architectural design, geo studies and the permit process,” Prestley said, “this all takes a great deal of time. We hope upon the pre-sale of our six condominium units we can start construction and bring back the Kingston Inn.

“I’m working very hard to get the Kingston Inn back up — it will happen,” he said.