University of South Carolina officials and local hotel owners struck a deal late Monday that clears the way for a university-affiliated hotel near campus.

The agreement, which came after a lengthy negotiating session with representatives of Gov. Mark Sanford’s office, ends more than a year of contentious debate over the project.

Details of the agreement will be announced at a news conference at the governor’s office this morning. Sources said they include a pledge by USC not to build any more hotels in the foreseeable future and sets an initial limit on the number of university guests the hotel can serve.

“I think this (the deal) is in the best interest of all of those involved, and there was some give on both sides,” said Bo Aughtry, owner of the Hampton Inn on Gervais Street.

The agreement comes two days before the 117-room “Inn at USC” project is scheduled to go before the Columbia City Council for final zoning approval. The inn would incorporate the historic Black House and Kirkland Apartments.

The proposed $12.5 million Pendleton Street hotel, which is to be used by university guests and federal prosecutors training at the adjacent National Advocacy Center, had been criticized by some hotel owners.

The Greater Columbia Hotel and Motel Association waged an all-out public relations war against the project, which it viewed as unfair competition. Business leaders and the Columbia Chamber of Commerce entered the fight and publicly backed the hotel plan.

Sanford and chief of staff Fred Carter had hosted several meetings between local hotel representatives and USC officials. Those talks appeared all but dead last week, but a last-minute meeting called Monday morning revived discussions.

Heavy pressure to end the battle came from both sides.

A full page ad appeared in Sunday’s edition of The State touting benefits of the hotel project.

The ad was paid for by the Midlands Business Leadership Group and signed by a cross section of the community’s business leaders, including Harry Lightsey, president of BellSouth Communications, and Blue Cross/Blue Shield president Ed Sellers.

Several hotel owners were preparing to sue USC’s Development Foundation in anticipation of Wednesday’s City Council vote, claiming the university might have violated state procurement law by not putting the project up for bid. IMIC Hotels was selected to build the hotel after an informal request for proposals.

Aughtry said those planned lawsuits likely won’t go forward.

“I would certainly think that’s part of the settlement, that the (pending) legal action would cease,” he said. “Nobody likes to go to court. I’m pleased it’s over.”

It was unclear Monday what impact the deal will have on a complaint filed with the federal General Accounting Office, which claimed the National Advocacy Center’s promise to fill the hotel with prosecutors violates federal procurement law.

Mack Whittle, chairman of USC’s board of trustees, said Monday he knew a deal had been reached but was unaware of the specifics.

“We believe in the Inn and we believe in the city of Columbia, so the fewer people opposed to the project the better,” he said.