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Boulder City Council on Tuesday approved the sale of a parking lot in the 1200 block of Pleasant Street to a Denver-based hotel developer.

The city is looking for ways to bring a more diverse group of people to the University Hill neighborhood to boost the economic vitality of the area, chief deputy city attorney David Gehr told council members Tuesday. The sale was approved unanimously as part of the council’s consent agenda.

The city is selling the property to Nichols Partnership for $2.74 million, which is tied to an agreement that if Nichols does not build a hotel there, the city can buy back the property at the same price.

The city still needs to conduct a site review before the sale is finalized, Gehr said.