BOSTON-The Saunders Hotel Group has signed a purchase and sale agreement for the former site of the Boston Police Headquarters. The development company plans to convert the building, located here on 154 Berkeley Street into a 200-room hotel.

The Saunders Group also gave city Mayor Thomas M. Menino a deposit of $700,000, which Lisa Pollack, spokesperson for the mayor, tells GlobeSt.com will go to the city’s affordable housing fund. The Group has agreed to pay $14 million for the 73,250-sf building and parking lot, the proceeds of which will go to fund mixed-income housing in the city.

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