ARCHIVES OF LEAD STORIES
July 29, 2004
Black-owned hotel creates
over 100 jobs
Jeremy Schwab
When developer Kirk Sykes and his partners initially
sought funding for a hotel and parking garage at Melnea Cass Boulevard
and Massachusetts Avenue six years ago, Lower Roxbury was a real
estate backwater.
Most developers looked elsewhere for land, and the current jockying
to build on the vacant lots along Melnea Cass had not yet begun.
But Sykes saw in the long-ignored swath of territory an economic
opportunity that other developers are now only beginning to grasp.
Sykes says being black allowed him to see beyond the run-down
look of the area to the business potential underneath.
“Being a minority real estate developer can be an advantage
if you can see the value in an area that other developers may
not see if they only see it in one light,” said Sykes during
an interview last week with the Banner. “Other developers
didn’t see the one million visitors a year to the hospital.
They didn’t see that when the Central Artery was completed
we’d be seven minutes to the airport.”
The result of the vision of Sykes and fellow Crosstown Center
Partners principals Tom Welch and Gene Sisco is a 175-room, 10-story
Hampton Inn and a 650-space parking garage. The project also includes
22,000 square feet of restaurant and retail space, and brings
an estimated 200 permanent jobs to Lower Roxbury.
The hotel ranks as one of just 18 majority-black-owned hotels
in the country, a dismally small number considering there are
an estimated 40,000 hotels in the United States.
People of color are in the majority at every level of management
and staffing at the hotel. Thanks to aggressive recruitment in
the inner city by the developers, the hotel’s staff is 93
percent people of color.
The Crosstown Center Partners’ emphasis on community empowerment
fit nicely with the mission of Boston Connects, which provided
public financing for the project.
The developers won a critical $7 million loan
in 2001 from Boston Connects, the organization that oversees the
Empowerment Zone funds, federal funds for business and job development
in the inner city.
The loan allowed the developers to then attract private financing
despite a tight lending climate due to the economic downturn and
the attacks on the World Trade Center and Pentagon.
With the loan came requirements that the developers hire at least
35 percent of their employees from the Empowerment Zone, which
spans from the Seaport District to Mattapan and covers Boston’s
lower-income communities.
The developers responded aggressively, partnering with l’Alianza
Hispana, Morgan Memorial Goodwill Industries and a handful of
other community groups to conduct job training for Empowerment
Zone residents. They held a job fair, collecting résumés
from approximately 300 people.
The result? Sixty-eight percent of the full-time employees at
the Hampton Inn are residents of the Empowerment Zone, many of
them from Dorchester, Roxbury and South Boston. The developers
also employed a high percentage of people of color in the construction
of the complex.
“The project helps fulfill our mission very directly,”
said Boston Connects Executive Director Christine Araujo. “One
of our goals is job training and the other is job creation.”
The developers made sure they won the support of nearby residents
early on. The developers conducted 30 community meetings in the
South End and Roxbury over the course of two months during the
initial phases of the development, and gave anyone who wanted
it a seat on the Crosstown Council Advisory Committee.
“In Boston, we always have this contentious model where
either the mayor is behind it and the community isn’t, or
vice versa,” said Sykes. “In this case, it was not
that way.”
Sykes hopes to make the public-private partnerships that allowed
Crosstown to move forward a national model.
To further that aim, Sykes became a principal at the New Boston
Fund, a major real estate/ private equity fund that is looking
to develop similar projects with help from Empowerment Zone money
in other cities.
“I am going to other Empowerment Zones and looking to do
similar things in other cities — help improve communities,
create jobs and transform neighborhoods,” said Sykes. “There
are many Empowerment Zones that haven’t used much of their
money.”
Sykes will also remain a principal at Crosstown Partners as Crosstown
Partners seeks funding for an office building on land the city
owns next to the Hampton Inn.
Crosstown Partners have signed a ground lease on the land, and
they aim to build 280,000 square feet of office space and 30,000
square feet of retail space at the corner of Albany Street and
Mass. Ave.
An estimated 1,200 jobs would be located at the site, about half
of them new jobs, according to developers. Sykes and his team
aim to emphasize community hiring, and are working to secure financing
and a critical mass of tenants in order to move forward with the
office complex.
Meanwhile, at the shining, state-of-the-art Hampton Inn, the staff
are beginning their long-term campaign to woo customers.
“I want us to accommodate and be the preferred location
for guests around the world when they visit Boston,” said
Phillip Tucker, the hotel’s general manager.
As a place of rest for visitors to this week’s Democratic
National Convention, the Hampton Inn got its first chance to impress
the world.
Back
to Lead Story Archives
Home
Page