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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.

 

 

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