The Grey Hosiery Mill is set to become a hotel, following Hendersonville City Council’s decision Thursday to begin negotiations with a developer. The council voted unanimously at its meeting Thursday night to draft a memorandum of understanding with hotel developer Belmont Sayre to preserve and renovate the entire mill into a one-story, 57-room boutique hotel. The total private investment for the Belmont Sayre project is estimated to be $13.5 million, while public investment is $850,100. That includes streetscape improvements along Fourth Avenue to Main Street. The mill will be preserved using historic tax credits. However, the city will sell the mill property for $1 million. That along with interest gained from the city financing a loan as well as tax revenue would net $1,111,900 in revenue for the city over the next 10 years.