Would this setup be adequate/safe??

Have you considered installing the stove in this space and finishing it later? The heat would come up the centrally located stairwells.

You would also have a taller chimney to insure that you have adequate draft. If there is a basement window you could convert it to a wood chute.

I do not see any registers/returns. What type of heat do you have? Oil fired boiler? How does it circulate?

MnDave

MnDave, it is an oil fired boiler with baseboard heating. I've thought about the install in the basement but I was afraid that might make the chimney too tall and cause problems, no? I'll have to measure it out and see.

Without knowing how your roof-lines are configured I would only be guessing how tall of a chimney you are looking at.

A 25 foot chimney is the start of tall IMO. Figure 10 foot a story plus 5.

MnDave