TYLER, Texas — East Texas continues to renovate and grow. The Tyler City Council on Wednesday approved a $1.5 million economic development agreement with NORF Development Company to help develop the former Carlton Hotel into more than 100 apartment units.
NORF bought the Carlton, located at 106 E. Elm St., in 2021 and will be investing over $30 million into the property to offer 15 stories of apartments featuring high-end finishes in a high-rise setting with unobstructed views of Tyler.
According to the city of Tyler, construction cost escalations, inflation, interest rates and the remaining effects of the COVID-19 pandemic have made the project challenging.
The city will give the funds to NORF when the building is substantially complete, which includes having a certificate of occupancy. NORF will be reimbursed up to $200,000 in permit fees after getting the certificate of occupancy.
"The Carlton Hotel is a historic icon in Downtown Tyler," said Stephanie Franklin, deputy city manager. "However, the current condition of the building has contributed to substantial blight in the Downtown district, and it poses a public health and safety risk."
The Carlton Hotel was once in its prime a 115,000-square-foot, upscale hotel with a three-story parking garage, rooftop swimming pool and a cabana, according to the Tyler Morning Telegraph.
"It's one of the largest developed properties downtown," Franklin said. "And it has continued to sit vacant for many years."
A statement from the city said more living options will increase consumer spending and the area's tax base.
Revitalization and preservation in downtown Tyler is a significant part of the Tyler 1st Comprehensive Plan and it includes dealing with blighted properties having a negative economic impact on the area, according to the city of Tyler.
Economic development grants are used to promote local economic development and to stimulate business and commercial activity within Tyler.
NORF said they plan to close financing this summer and hopefully break ground by this fall. They’ve also purchased the former Wilcox building and plan to break ground in the next 40 to 60 days.
"This is their niche," Franklin said. "They take old historic properties that have been in total disrepair and have taken them and created a rehabilitated project that becomes a gem for those cities that they've worked in."
NORF said they plan to have the project completed by the end of 2024.
The city continues to build a partnership with the company, and the money they’ve approved will not be given until the project is finished.