Brownwood City Council members approved incentives Tuesday for a developer who will build a hotel in the 300 block of East Commerce.

Council members authorized Brownwood Municipal Development District Executive Director Ray Tipton to negotiate and enter a contract with AJA Development at 315 E. Commerce to include:

• 65 percent of hotel occupancy tax rebates for up to seven years

• All permits to be waived relating to construction for up to $20,000

• Up to $675,000 cash reimbursement incentive for site development. “It’s in the flood plain. There are some utility issues,” Tipton said. “There’s actually a storm drain on the property that needs to be relocated. It’s a very similar model to what we did with United Supermarkets and the Leeco property across the street.

“It is an 18-month construction project so we’ll be able to budget for this over two budgets. We’ll do a payment after the site work’s done and then we’ll do the final payment once the hotel’s actually open.”

The site is currently a vacant lot and is located behind Studebaker’s and in front of the Tractor Supply, Tipton said.

“It’s just vacant dirt,” Tipton said.

 He did not know what type of hotel will be built on the site.

“He’s got a couple of different options,” Tipton said of the developer.