As reported by The New York Times, the Seattle Post-Intelligencer newspaper will produce its last printed edition on Tuesday and become an Internet-only news source — the move will make the Seattle P-I the largest newspaper yet (circ 118k) to lose its print presence and hit the web.

Hearst has said that the paper (would that now be a misnomer?!) will resemble a local Huffington Post more than a traditional newspaper, with a news staff of about 20 people rather than the current 165, and a site consisting mostly of commentary, advice and links to other news sites, along with some original reporting.

The P-I lost $14 million last year, according to Hearst, and its transition to an all-digital product will be closely watched in an industry that is fast losing revenue, is casting around for a new economic model and still relies on print for about 90 percent of its revenue. The company recently instructed all of its newspapers to look for ways to charge for digital content — on mobile devices, if not online.

“We clearly believe we are in a period of innovation and experimentation, and that’s what this new SeattlePI.com represents,” said Steven R. Swartz, president of Hearst’s newspaper division. “We think we’ll learn a lot, and we think the Seattle market, being so digitally focused, is a great place to try this.”

Hearst hopes to capitalize on the healthy Web traffic The P-I already has, about 1.8 million unique visitors a month, according to Nielsen Online. It usually outranks the online readership of its traditional rival, The Seattle Times, despite having much smaller print circulation.