The city of Hoboken is getting a new Hilton Hotel at the old YMCA building on Washington Street.

The developer, KMS Development Partners, will be investing more than $4 million in community givebacks, about half of that will be for a new community center, which will provide the city's first public pool.

The initial cost for the project will be $2 million, and KMS Development Partners, who is building a waterfront hotel, will be picking up the cost.

The old YMCA sits on coveted land in the city, but rather than build another apartment or shop, officials wanted to create something that could serve its residents a greater purpose.

The developer has plans to create a public pool, a library, pre-K classrooms and a community center.

The project is expected to bring in about 170 jobs.

"I think a project like this is going to be a terrific amenity for the residents of Hoboken, but it's also going to be a really a lifeline for people that are looking for a job where they can be paid a living wage and treated with dignity and respect," says Rich Maroko, with the Hotel Trades Council.

"I am putting developers on notice,” says Mayor Ravi Bhalla. “If you want the opportunity to do business in the city of Hoboken, we expect union labor and we expect generous community givebacks."

Initial estimates for renovations is about 18 months.

According to part of the deal, the new hotel will be entirely built and operated by union workers, and a portion of the workers must be Hoboken residents.