Syracuse, NY -- Syracuse officials Thursday advised Common Council not to vote on a controversial 15-year lease of temporary classrooms at the former Syracuse Developmental Center until it has a guarantee of payment of back taxes owed on the property. Corporation Counsel Juanita Perez Williams told councilors at an Education Committee meeting that a dispute between the buyers and...
View full sizeMembers of the Syracuse Common Council aren't convinced that leasing part of the Syracuse Developmental Center is the best plan for the city school district. Syracuse, NY -- Syracuse officials Thursday advised Common Council not to vote on a controversial 15-year lease of temporary classrooms at the former Syracuse Developmental Center until it has a guarantee of payment of back taxes owed on the property.
Corporation Counsel Juanita Perez Williams told councilors at an Education Committee meeting that a dispute between the buyers and sellers of the Wilbur Avenue campus appears to be holding up a document that would ensure repayment. The argument is over how much the current owners actually owe in taxes, Perez Williams said.
The school district is pressing council to pass the $28.2-million lease quickly so renovations can begin on three buildings at the campus to house pupils displaced by construction at Dr. Weeks Elementary and H.W. Smith K-8 schools.
Assessment Commissioner John Gamage said the current owners have never paid any property taxes since taking ownership in May 2008. They owe $1,325,000 in combined city, school and county taxes, including penalties, he said.
The amount is not up for debate, Gamage said, and how it will be paid off is a matter for the current owners and the buyers. The buyers, Health Consortium-USA, have pledged to repay back taxes, renovate part of the property into classrooms and rent them to the district at a cut rate.
“I would strongly urge you not to vote on this until we have those stipulations in hand,” Gamage said, referring to the document ensuring tax repayment. “That’s the administration’s position.”
In a 5-4 vote April 26, council tentatively approved the lease, pending review of state aid figures. Councilors could vote July 12 on final approval. State aid figures came in about $16,000 short of the district’s estimates, leaving the district with a $1.84 million share.
But several councilors on the already-split panel say they have new concerns after learning one of Health Consortium’s partners has had more than $1 million in court judgments and fought off a federal mail fraud charge and a home foreclosure.
Lawyer Ben Ferrara, representing the district, told councilors the document requested by Perez Williams is unnecessary because the lease between the district and the new owners stipulates payment of back taxes in full. If the taxes aren’t paid at closing, the lease is voided, he said.
Council and Mayor Stephanie Miner last week asked Superintendent Dan Lowengard for “Plan B” in case the former developmental center deal fails. Lowengard has argued that no other available buildings, including closed parochial and charter schools, will satisfy the district’s needs.
Deputy Superintendent Chris Vogelsang presented councilors Thursday with the district’s Plan B, which includes reinstating Blodgett pre-K-8 school into the first phase, closing Bellevue Academy (formerly Shea Middle) to be used as swing space and moving the middle schoolers there into Blodgett. Blodgett, which was dropped from this phase due to a $20 million budget gap, would become a middle school, Vogelsang said.
The plan called for splitting up pupils at H.W. Smith and Dr. Weeks among other schools and would delay construction by four months for Weeks and 18 months for Smith, Vogelsang said. It would also reduce the scope of work, she said.
Several councilors said they were skeptical that was the district’s best alternative. It appeared to be a worst-case scenario that was presented to scare councilors into approving the SDC lease, said Councilor Lance Denno, who voted in favor of the lease April 26.
Contact Meghan Rubado at mrubado@syracuse.com or 470-3260.