Work on a new 61-bed hotel development in Austin could begin soon following a vote by city council Tuesday.

The council approved a development agreement, which spells out a number of requirements for the developer, South Dakota-based Austin Lodging, L.L.C.

These include getting approval from the city engineer on project specifications, setting up utility service with Austin Utilities and paying for a number of costs associated with construction.

With the development agreement in place, the developer can get to work this month, as originally proposed.

The hotel would go on land owned by Kermit Watts, owner of the Austin Auto Truck Plaza/Watts Cookin’, and behind nearby KAAL-TV, according to city documents.

The proposed development would be a three-story building, with a canopied entrance and 73 parking spots in front. City documents do not specify what the name of the hotel would be.

Watts said previously that he would welcome a hotel nearby.

“I think it’ll be a great asset to this piece of property and the city of Austin,” he said.

Cheryl Corey, executive director of the Austin Convention and Visitors Bureau, said she had first heard of the proposal about a year ago and also thinks a new hotel would be good for Austin.

“Yes, there are definitely weekends in Austin where hotels are full,” she said. “I do see a need.”

Corey said she was previously unsure if the proposal would go forward because of the down economy.

“Like everybody, we’re just waiting to see what happens and what’s the next step,” she said.