The Carley Capital Group, a Wisconsin-based developer with extensive interests in the Washington area, has been chosen to carry out the first phase of a planned 10-year downtown redevelopment of Newport News.

This phase of the project, expected to cost about $113 million, will include a 17-story office building, a 25-story, 350-room hotel and retail complex, a courthouse/office building and two 600-car garages.

The Carley organization and city officials signed an option agreement last week giving the developer three months to begin arranging financing. The option is renewable for a second three months, "so we have six months to show our stuff," said David Carley, a partner in the firm.

The city plans call for the first phase of the redevelopment to be completed by 1986. Two subsequent phases are to be finished in 1989 and 1992, respectively. The total project, known as Newport Centre, is expected to cost about $300 million.

The project is being launched at a time of high hopes for the Hampton Roads area. Newport News Shipbuilding and Dry Dock, Newport News' principal employer, is expecting to benefit from the Reagan administration's planned naval expansion. It is considering construction of a 400,000-square-foot office complex in Newport Centre. Across the James River, the city of Norfolk is working on a major downtown redevelopment Details on Page ?? .

The Carley Group has been active in the Washington area for some time. It is renovating the old Commodore Hotel near Union Station and it has acquired the Penn Theatre on Capitol Hill.