Alpharetta is getting a new hotel conference center. The City Council approved 5-2 last night a partnership with North American Properties to develop a $107M Hotel Avalon complex that will be flagged by Marriott Autograph hotel brand. The hotel will host 325 rooms with an attached 65k SF conference center. The project is part of Avalon's second phase, which includes retail, office and housing, according to NorthFulton.com. The project is expected to be partly financed through a hike in the hotel-motel tax that will raise $25M, a detail that caused two Council members to dissent. [NF]

Sources also tell us that Microsoft is still eyeing anchoring Hines Interests' planned office project at Avalon, part of the Phase 2 lineup. We first reported here that Microsoft is eyeing a move out of its longtime home at Sanctuary Park, and is still evaluating more than half a dozen options, including renewal and other existing office projects. Microsoft has tapped Colliers International's Drew Levine and Jeff Kelley for its search, both of whom were unavailable for comment. Hines has been planning a 200k SF office building at Avalon, which the firm could go spec on at some point.