City of Tacoma officials announced Thursday they have reached a tentative development agreement for a new four-star, 300-room hotel with parking in downtown Tacoma.

The project, which will be developed by Yareton Investment and Management LLC, is expected to be built adjacent to the Greater Tacoma Convention and Trade Center, located at Broadway and South 17th Street. The development is expected to break ground in late 2016.

“With strong commercial anchors at both ends of Pacific Avenue in downtown Tacoma — namely the University of Washington Tacoma, museums, and concentration of restaurants and retail stores — the new hotel will serve as a centerpiece for additional catalytic investment in the downtown core,” said Tacoma City Manager T. C. Broadnax.

Over the next several months, the City of Tacoma will work directly with Yareton in its due diligence and on the entitlement process, which will consist of preparing and submitting development plans for the hotel, according to City staff. A second phase of the project is also being contemplated by the developer, which would include approximately 200 residential condominiums, ground floor retail and/or office, and parking.

In January, the Tacoma Daily Index reported the City issued a Request for Interest (RFI) from developers for the site. Five developers submitted proposals, which were evaluated by City staff. In April, the City and Yareton Investment and Management began to negotiate a development agreement for the project.