As debate continues over a proposed 23-story luxury hotel and condominium building downtown, plans for a similar, 13-story construction project are being developed.

The proposed boutique Hotel Indigo is planned for the former site of the Asheville Area Chamber of Commerce on Haywood Street.

The building will house 100 hotel rooms and 12 condomminium units.

Construction is planned for early next year on what will be the first hotel built downtown since the Haywood Park Hotel was erected in the 1980s.

The project is being developed by Hospitality Lodging Investors II, based in York, Pa.

Unlike the Ellington, proposed for Biltmore Avenue, Hotel Indigo will be smaller than 100,000 square feet, so it will not require approval by City Council.

Interim Planning Director Shannon Tuch said that developers purposely kept it under that limit.

The old chamber building will be demolished in the next 60 days and construction on the hotel will begin in January or February, developers said.

Hotel revenues in Buncombe County have increased significantly in recent years. From 2002 to 2007, revenues jumped from $14 million to $19 million, and many analysts say they expect this trend to continue.

Hotel Indigoís developers said they hope to meet a growing need by providing rooms that will rent for less than Haywood Park.

Plans show a modern-style structure with one level of underground parking. The building will be a short walk to the Asheville Civic Center and the Grove Arcade.