City approves economic development agreement for former Carlton Hotel revitalization

TYLER — Plans for revitalization of a Tyler landmark are moving forward following action Wednesday by the City Council. According to a news release, the Council approved an Economic Development Agreement with NORF Development Company for $1.5 million to incentivize redevelopment of the former Carlton Hotel. NORF purchased the East Elm Street building in 2021 and intends to invest more than $30 million in the property. Officials say due to current market conditions — including construction cost escalations, inflation, interest rates, and the remaining effects of the COVID-19 pandemic — moving the project from final design to construction has been challenging. Staffers say the City of Tyler will disburse the funds to NORF once the building is substantially complete. 

“The Carlton Hotel is a historic icon in Downtown Tyler,” said Stephanie Franklin, Deputy City Manager, as quoted in the release. “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.” Promoting the revitalization and historic preservation of Downtown Tyler is a major initiative of the Tyler 1st Comprehensive Plan, termed a 20-year community-based vision with a strategic framework for future City actions. Once the project’s finished, the property will offer 15 stories of apartments with more than 100 units featuring high-end finishes in a high-rise setting with unobstructed views of Tyler, according to the release. Officials say with more living options available, there are anticipated increases in consumer spending and the area’s tax base.