City council voted tonight to sell the Manchester Inn & Conference Center to a developer that the city hopes will return the downtown property to a “vibrant destination.”

Council voted to allow the city to enter into a development agreement with Manchester LP, headed by William E. Grau from Coldwell Banker. Grau said he will perform a feasibility study within two months to determine the best use of the Manchester.

Grau offered to purchase the Manchester for $1 and said he plans to invest $10 million into the property via loans and tax credits. Grau must apply for historic tax credits by July, which is a “very aggressive” timetable, said Denise Hamet, the city’s economic development director.

Grau said he hopes to begin construction by October 2014, and have it completed within 12 months.

Grau, who appeared on Skype, said he hopes to make the Manchester “everything it can be.”

The 91-year-old hotel was purchased by the city in 2011 for $175,000 and officials were asking for a sale price of $325,000.

The other proposal was submitted by Historic Middletown Developers LLC, which includes a five-person development team.