(KAIR)--It's being hailed as a strong step for local economic development, as a new hotel is approved to be constructed in downtown Atchison.

City Commissioners, during a meeting Wednesday, approved a development agreement with Atchison Hospitality Group LLC following a brief executive session to approve Main Street Hotel, to be located at the current public parking lot of 4th and 5th Street.

“This is a great piece for the community,” said City Manager Trey Cocking. “This goes to what we want to do with downtown. It will mean 30-40 new people in downtown every night who are going to need a place to go out to eat, go shopping and grocery stores. All those conveniences are right there.”

Cocking also emphasized the economic impact the new hotel, which will be 60 percent owned by local investors, will have on Atchison.

“The project is slated to increase bed, sales and property tax for the community,” Cocking said. “We estimate a five million dollar increase in personal income IN Atchison because of this project and a 56 million dollar increase in local sales over ten years, and then our property tax base will be increased by 4.6 million dollars.

President of Atchison Hospitality Group Bill Michaud addressed the full commission room after the motion was passed.

“Congratulations, we’re going to build a hotel,” Michaud said. “Thank you for your support. Like Trey said, this project wouldn’t have come together without a lot support, work, time and energy from a lot of people. Sixty percent of our equity investors are local folks, and we’re going to maintain a first class hotel in this community. We’re very excited about it, and we look forward to get going on our next announcement once we get an approval on our franchise.”

The decision to build a new hotel follows a study conducted back in 2013 and 2014 by HREC, a firm with expertise in market analysis in the hospitality industry, when it indicated Atchison needed another hotel, and it needed to be located downtown.

Cocking agrees. “This project is truly a big deal,” Cocking said. “It represents a lot of people who are committed to Atchison and want to see us grow and prosper. And, a community really becomes something when it has a downtown hotel. Kansas City, Wichita, Topeka—continue to fight for downtown hotels. And even as a smaller town, it is vital for us to have this opportunity and for us to put additional people downtown, shopping and dining to keep our city alive.”

Watch for the next announcement from Atchison Hospitality Group naming what franchise we’ll see downtown. The possibilities include: Marriott, Fairfield Inn, Hampton Inn or Holiday Express.