Requested tax incentives were granted by a unanimous vote of the Hays City Commission during Thursday’s meeting for a much-anticipated Hilton Garden Inn and conference center.

Developers say they expect to close on the land purchase in early May and will begin construction as soon as possible. The four-story hotel will offer at least 100 guest rooms and 8,400 square feet of convention space.

It will be located just west of Walmart SuperCenter along 43rd Street, which will be extended as part of the project.

Public hearings were conducted by the city commission regarding a requested 2-percent Community Improvement District and a Tax Increment Financing district with a cap of 20 years or $3.7 million, whichever happens first. No residents attended the meeting to offer comment.

City and county sales tax revenues collected on-site would not be affected by the TIF, and the developers are not asking the city to incur bond debt as part of the TIF agreement.

“The community is very excited about this,” Commissioner Shaun Musil said Thursday.

The 2-percent CID tax only will apply to hotel customers and has a cap of 22 years or approximately $3.1 million, whichever happens first. The tax is set to take effect April 1 of next year.

The commission also ratified the developers’ request for the city to rebate all of the 5-percent bed tax funds generated at the hotel, to continue for 20 years with an option to extend.

A possible second phase of the development could include construction of a new restaurant and commercial retail business to be located near the project site.

City officials have been seeking enhanced convention facilities for the past several years, due to reported deterioration and eventual closing of the former Ambassador Hotel, which has been demolished.

A shortage of hotel rooms in the community also has been a hindrance in attracting large events, and was factored into a decision to divide the Special Olympics basketball and cheerleading tournament into two locations this spring.

In other business Thursday, the commission:

• Heard a report of progress of the wastewater treatment plan reconstruction.

• Approved a replat of Clubhouse Gardens II.

• Approved waterline improvements in the 2400 block of General Hays Road and accepted a bid for roof replacement of a plant house at the water treatment plant.