City council in Prince Albert, Sask., has voted to approve an incentive package and development permit for a new luxury hotel slated for the city.

The city will give $700,000 in cash incentives to the developers of the planned new $15 million Premier Best Western Hotel, though the developers must pay all fees and infrastructure charges before receiving the grant.

The money covers $519,000 in new road and utility construction, and the waiving of $181,000 in permit and levy charges.

Mayor Greg Dionne said the incentives are not sizeable considering the scope of the project and the money will be recouped relatively quickly.

A strong opponent of the package was Councillor Terra Lennox-Zepp, who argued there was a lack of evidence over the need for the development or how the cash grant would improve the economy of the city.

"In this case, it is shocking the lack of information that we have," she said after the vote.

"This shouldn't be about what a developer wants. City councillors need to govern the city in a way that is in the best interest of the residents of Prince Albert, and this proposal that passed today is not in the best interest."

The city said the hotel is expected to pay around $277,000 in taxes per year on top of $48,000 towards a marketing levy once it opens in 2018.

"I am pleased ... It really shows that we are open for business," Dionne said.

"It's going to get people back to work and I hope we get more spin-off out of it."