You are passing the command name and the command arguments as the command to execute. start-stop-daemon
looks for a command named /usr/bin/tail -250f /var/log/apache2/error.log
which does not exist of course. Instead you want to call something like (unimportant parts left out):
APP_DIR="/usr/bin"
APP_BIN="tail"
APP_ARGS="-250f /var/log/apache2/error.log"
start-stop-daemon --start --exec "$APP_DIR/$APP_BIN" -- $APP_ARGS
(note the -- between the command and its arguments)