CDFI Financing Revives Historic Hotel, Driving Jobs and Growth in Appalachia
Client: The Tygart Hotel - Woodlands Development Group
Client Location: Elkins, WV
CDFI: VCDC Community Lenders
CDFI Service Area: Virginia & West Virginia
Financing and technical assistance to create or preserve affordable housing, community development, economic development projects, and revitalize historic properties
Nestled in West Virginia’s serene Monongahela National Forest of the Appalachian Mountains, the Tygart Hotel shines as a treasured community staple in the City of Elkins, West Virginia. In March 2024, the new-and-improved Tygart Hotel opened to an outpouring of support and excitement from Elkins residents, state and local legislators, visitors, and more. After eight years of planning and development, the Tygart Hotel now brings 56 boutique hotel rooms and 57 vital jobs to Elkins.
Redeveloped by Woodlands Development & Lending, a long-term partner of VCDC Community Lenders, the Tygart Hotel is a prime example of how people-driven economic development builds a strong and lively community that residents are proud to call home.
Financing Economic and Historic Renewal
The Tygart Hotel embodies a rich history that showcases the spirit and vibrance of West Virginia. The building was constructed in 1907 and served as a high-end hotel that thrived in the early-to-mid 20th century when Elkins was an economic hub for the county’s railroad and industrial enterprises. Over the years, the hotel attracted many visitors and even served Franklin D. Roosevelt Jr. as a guest in the 1960s. In the 1970s, the building was redeveloped into a housing community that eventually fell into decline and closed in 2018.
Woodlands Development & Lending, a long-term partner of VCDC, has led the efforts to redevelop the Tygart Hotel and other needed development throughout the region. Woodlands began community development work in the 1990s as a culmination of local and regional grassroots organizing to increase affordable housing availability in Randolph County. Since then, they have expanded into economic development and lending efforts driven by local conversations and discussion wherein community members recognized the need not just for housing, but for economic development as a vital component of a thriving community. Woodlands Development Group, the housing and economic development arm of the organization, has redeveloped over 300,000 sq. ft of downtown building space. This year, Woodlands Community Lenders, the CDFI of Woodlands, celebrates 10 years of operations with over 80 businesses and projects that have received vital financing to enliven communities.
Revitalizing a Community Anchor
Woodlands began redeveloping the Tygart Hotel after purchasing the building in 2017. Renovations involved extensive reworkings of the floor plan, rebuilding basic structures, and other significant updates. The vision was to recreate the Tygart building as a focal point for both community members and visitors alike to gather and enjoy the spirit and attractions of Elkins, particularly during popular events like the Mountain State Forest Festival. Today, the hotel captures the ethos of Elkins perfectly.
When visitors enter the front doors of the brand-new Tygart hotel, they are met with friendly staff, comfortable lounging and accommodations, and local art. A key piece of the hotel that separates it from others is the interactive Lost Towns/Lost Communities art exhibit with pieces on each floor capturing forgotten towns brought back to life through creative retellings of nearby West Virginia communities that helped build Elkins. Guests and visitors can read about the artwork and stories of these lost towns while enjoying a drink at the cozy lounge bar or dining at the hotel’s restaurant, Oxley House, which serves traditional Appalachian food.
Hannah Davis, a local high school junior at the Tygart Hotel’s ribbon cutting event, said:
“As you walk the halls, you are met with the history of places and maybe even faces that you can relate to. You are met with people excited to see and or meet you. You are met with love, you are met with kindness, and most of all, you are met with opportunity.”
Sustaining Growth Through CDFI Investment
Funding sources to support Tygart Hotel’s redevelopment were driven by multiple loans and investments, including a $12.5 million New Markets Tax Credit (NMTC) loan, Historic Tax Credits, leverage from VCDC Community Lenders, nontraditional and CDFI lending sources, and investments from local banks. Buy-in from the local community was essential to the success of Tygart’s redevelopment. The total project cost was approximately $16 million. Support for the restoration of Tygart from the local community was vast, particularly due to the need for quality jobs in the area. In Elkins, the unemployment rate was 9.7%, compared to West Virginia’s average unemployment rate of 4.3%. Of the 57 jobs that became available to operate the hotel, over 600 individuals applied.
“In 2015, Elkins looked very, very different. We had a lot of vacant storefronts; the Tygart hotel was not a good place. So, this is really about a community that has invested, starting all the way down at the end of the block and beyond.”
– Dave Clark, Executive Director of Woodlands Development & Lending
Woodlands Development & Lending plans to develop the Tygart Community Investment Fund which will use hotel proceeds and guest donations to build more equitable tourism development in the Elkins area, including increasing local wages, creating more single-family workforce housing, and investing in public improvement. Through relationships with community-invested developers like Woodlands, VCDC has expanded opportunity throughout West Virginia. With this partnership in place, we help support viable, healthy communities by bringing resources to small economies where traditional banks won’t operate.
Visit our rural revitalization page and persistent poverty page to learn more about how OFN and our network of CDFIs invest in these priorities.
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