LINCOLN, N.H. (AP) – Loon Mountain ski area is about to begin a major expansion, including a new mountain of trails and lifts, a new base lodge and nearby homes.

Loon says skiers will have 40 acres of new trails, a new lodge and new lift by the 2007-08 season.

The developer, Dallas-based Centex Destination Properties, says the plan eventually could include 900 homes and condos, and begins with 54 single family home sites.

The plan is to use money from selling the lots to pay for a new high-speed lift, seven trails, a new base lodge and parking in an area that used to be known as South Mountain, but is to be known and marketed as South Peak.

Ed Brisson, vice president of operations for the Northeast for Centex, said they have closed on phase one of the property only and a master plan is in process.

Centex is a nationwide builder of upscale second and retirement homes, mostly at golf courses and on waterfront in resort destinations, mostly in the south. Loon will be Centexs first ski area.

Rick Kelley, general manager of Loon Mountain, said things are about to change with more terrain and lifts.

The trails would be expanded enough for the daily capacity of 6,100 skiers and riders to increase to 9,100 a day.

Skiers in the 2007-08 season will find a new base lodge at South Peak and a detachable quad to be known as the Lincoln Express that will connect the areas, he said. Three of seven trails also will be cut and ready with snowmaking by the 2007-08 winter, adding 40 acres of skiing.

The new mountain will have 1,540 vertical feet of skiing, mostly intermediate and expert. Another 118 acres will be in the next 10 years.

“We are extremely pleased to have Centex on board and doing this project with us,” said Kelley. “We have one chance to do this right. We have a company in place that can do this.”