Emerald Bay Equity hopes to break ground in the first quarter 2011 on a long-stalled development project on Queen Anne Ave N, according to a report by the Seattle Daily Journal of Commerce yesterday.

Artist rendering of Seven Hills project.

The Seven Hills project, located at 1919 Queen Anne Ave just across the street from Metropolitan Market, was originally slated to be a mixed office/retail building, but as we previously reported, the developers changed plans to mixed-use retail/residential back in August. The four story building will include 57 apartments, some 8,200 square feet of retail space, and two levels or underground parking for 68 cars.

This project is the third of EBE’s four-phase development plan for 2.1 acres of property, called “The Collection,” along Upper Queen Anne’s main drag. The first two phases–the Sweetbrier and Eden Hills mixed-use residential/retail buildings–have already been completed.

Until very recently the Sweetbrier was struggling to fill its retail space, but in the last 16 months a number of new tenants have moved in, including Key Bank, Twirl Cafe, and most recently, Menchie’s frozen yogurt.

The plans to move forward with the Seven Hills project comes only eight months after EBE put The Collection of properties from 1911-1919 Queen Anne Ave N up for sale, a package that included both the Sweetbrier and Eden Hills developments, and the half-block where Metropolitan Market is located, EBE’s phase four project.

Artist rendering of Met Market project.

The group still plans to redevelop the final plot into a four-story, 125-unit apartment complex with 40,000 square feet of ground-floor space for the longtime neighborhood grocery and other retailers, and 200 underground parking stalls. According to EBE principal Joe Geivett, the company plans to start this phase in 2012.

When The Collection developments are completed, they will amount to more than $140 million in property value, in 250,000 square feet of mixed-use retail and residential space at the top of the hill, according to a Jones Lang LaSalle report published in April.

Currently EBE is working with an “unnamed partner” to finance the Seven Hills project, according to the DJC. The City of Seattle has tentatively scheduled a design review meeting on the new version of the project for January 19. Read up on past design review recommendations on the project here. Review the project’s permit status here.

Many Queen Anne residents and lucky passersby who wandered to the Upper Queen Anne Key Bank opening this afternoon were bought lunch on the bank.

For their grand opening celebration, the bank set up events outside their store and across the street in the Safeway parking lot, where they gave out $10 lunch vouchers to Hawaiian-Korean street vendor Marination Mobile, who was there exclusively for the event.

In front of the bank, at 2105 Queen Anne Ave. N., KUBE 93.3 and KJR 95.7 set up booths and were giving away bumper stickers and promotional prizes.

Inside the bank long lines of people enjoyed the Mariners Moose, while waiting to meet former Mariner Jay Buhner, who signed autographs to fans from 12 to 1 p.m.

The bank did all this as a promotion for their new branch on the top of the hill – a way of introducing themselves to the neighborhood.

“We’ve had a great turnout,” said Senior Relationship Manager and new Queen Anne resident Heather Cortez. “I’m down to my last bunch of tickets!”

Remember that new Key Bank that opened up on the top of the hill? Well, if you’re wandering Queen Anne Ave today then you’re in luck. The bank is throwing their official grand opening right now, until 2 p.m., “or until we run out of tickets,” an employee said.

The branch located at 2105 Queen Anne Ave. N. will be giving away free lunch tickets good for $10 at Marination Mobile, the famed Hawaiian-Korean fusion street food vendor. According to a branch employee, former Seattle Mariner Jay Buhner and the Mariner Moose will also be outside the bank signing autographs from 12 to 1 p.m.

Key Bank is opening a branch on the top of the Hill, at 2105 Queen Anne Ave. N.

The new location is on the first floor of the luxury Sweetbrier apartment building on the corner of Crocket Street and Queen Anne Ave. The building opened last month, and still has a lot of retail space available on the bottom floor.

No word yet on the opening date. The bank already has one branch in Lower Queen Anne at 434 Queen Anne Ave N.