The Inn at Government House would be sold by the city of Baltimore to a private group and renovated for continued use as a small hotel, under a $6 million plan approved Thursday by the Baltimore Development Corp.

Directors of the quasi-public agency voted to recommend that the city sell the property at 1125 N. Calvert St. to Government House LLC, a group that offered buy the inn last year after the city sought proposals from developers. . City officials say they want to sell the inn because it isn't making money and needs repairs and they believe a private group could run it more efficiently and profitably.

Government House LLC is headed by Martin P. Azola of the Azola Companies and Eddie Brown of Brown Capital Management, a company with headquarters on the next block from the hotel. Ziger/Snead would be the architect.

The group proposed to open the renovated inn by the fall of 2011 with 17 rooms, a restaurant and meeting space. The BDC recommendation will be forwarded to Mayor Sheila Dixon for a final decision.