TYLER, Texas (KETK) – The Tyler City Council approved a $1.5 million economic development grant on Dec. 14 for NORF Development Company to renovate the Carlton Hotel.

NORF bought the property on 106 East Elm Street in 2021 and expects to invest more than $30 million into the project. City officials said inflation and rise in construction costs have made it difficult to finish construction.

The city will provide the money to NORF once the building is almost complete, and they will get a certificate of occupancy (CO). Officials will also give NORF up to $200,000 to reimburse them for permit fees.

“The Carlton Hotel is a historic icon in Downtown Tyler,” said Stephanie Franklin, the 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.”

Once the building is done, there will be 15 stories of apartments and more than 100 apartments with city views.

Officials hope the renovation increases residents’ spending and benefits the local economy.

Cities are able to give out these grants to promote local business. This project is also part of the Tyler 1st Comprehensive Plan, which wants to renovate and preserve the downtown area.