Blackstone hotel promises 60 jobs, gets tax abatement in return

TYLER — The Blackstone Hotel, with Valencia Hotel Group, is coming back to Tyler and bringing 60 full-time jobs with it. According to our news partner KETK, the new full-service, luxury hotel is being built under a 3-year plan, on the corner of Broadway and Fergueson, promising at least 60 full-time jobs with an annual payroll of $2 million.

This economic boosting promise is why Smith County Commissioners took up a vote for a 10-year tax abatement of 50% for Blackstone Hotel, as long as Valencia Hotel Group upkeeps their promise of 60 full-time employees.

Scott Martinez, President of Tyler Economic Development Council, says his organization will be the monitor of this agreement.

“So the hotel will give a quarterly and annual report on their employment numbers and their investment, as well as their sale sets to the city,” Martinez said. “So we can track to make sure they’re following through with what they committed to do.”

Some were worried the tax decrease for the hotel would increase the taxpayer burden.

Martinez explains, “No money is being taken away, it’s just a portion that’s being abated because of the new value coming on under the tax rolls.”  Meaning, the boutique hotel will get 50% off their taxes because of the increase in jobs and capital investment promised.

If the hotel does not stay true to their side of the bargain, Judge Franklin explained that the county can always lessen the abatement amount.

This tax abatement was decided in a 4-1 vote, with Christina Drewry of Precinct 1 voting against saying she worries about the burden of public cost.