With a unanimous vote on Thursday night, the Hendersonville City Council became an official partner with a Carrboro developer to turn the old Grey Hosiery Mill into a boutique hotel. City staff and Belmont Sayre, the developer, reached an agreement on a memorandum of understanding (MOU), which establishes the criteria for the creation of a binding performance and development agreement (PDA) and specific guidelines for Belmont Sayer. City manager John Connet told the council that he and staff and the developer worked on the MOU throughout the afternoon, negotiating changes that the developer had requested. The city has already put a temporary roof on the building to protect it from further damage and has received a $500,000 Community Development Block Grant through the North Carolina Department of Commerce. The city also plans to retain Mac McCarley with Parker Poe Attorneys at Law to assist in the creation of the PDA. The city would sell the property for $1 million and invest $850,000 in streetscape improvements to create a well-lighted attractive corridor from Grove Street to Main Street. The city projects that total revenue from the project would reach $1.98 million — $1 million for the property sale, plus $312,000 in interest for financing the sale plus $676,500 in tax revenue.