Washington’s City Council, during its meeting today, is scheduled to award a $108,000 contract to install water and sewer lines to the Fairfield Inn site next to the city’s No. 2 fire station on West 15^th Street.

The project is being funded by a North Carolina Rural Infrastructure grant and contributions from the developer and city.

On April 14, bids on the project were opened, but the low bidder withdrew his bid the next day, according to a memorandum from Frankie Buck, the city’s public-works director, to the mayor and council members. The project was re-advertised. The new bids were opened Tuesday, with AAHW Construction the low bidder among four bidders. The highest bid was $190,795, followed by lower bids of $157,325 and $143,965.

“Barring any unforeseen change orders, it should finish well under the budgeted amount,” reads the memorandum.

In August 2015, the city was notified it had been awarded a $100,000 grant to provide the publicly owned utilities to the 87-room hotel. The project developer, New Age Properties, is required by the grant conditions to contribute $101,400 toward the project, with the city providing $5,000, which the developer agrees to reimburse the city. The project’s budget is estimated at $206,400, according to a city document.

A grant project ordinance approved by the council shows $149,800 allocated for construction, $24,500 appropriated for engineering design, $9,500 allocated for construction administration/observation, $7,600 earmarked for legal fees and $15,000 allocated for contingency.

The hotel will include a restaurant, according to information supplied to the city’s Planning Board. The board will have some say in the design and appearance of the hotel.

The grant terms require that 20 jobs be created and those jobs are maintained for a minimum of six consecutive months.

New Age Properties plans to invest about $6.8 million to build the hotel and create about 20 jobs, according to North Carolina Commerce Department. The estimated cost for sewer lines and street infrastructure that would serve the hotel comes to $424,000, with $100,000 of that cost being paid for by the grant, according to a memorandum from Matt Rauschenbach, the city’s administrative services director and chief financial officer.