Hi Don,
Are you starting to build your house? Did you retire already?
I've never done a basement, but the biggest concern I've heard is to be sure not to overdig any areas and refill. You won't have the same compaction on a place you refill. The other concern is standing water. If you dig it out and the weather turns bad, it could be quite a long time to drain, unless of course you plan for it and install some sort of drainage.
Is it going to be a full basement on all four sides, or a three sided one with the front side taking advantage of that view you showed us?
As for the sand, I'd sure save that in a handy pile for future projects. Sand is a wonderful base material for just about everything.
Eddie