New York City developer hopes to have hotel renovated and open by early 2012.
View full sizeA view of the the lobby and reception desk at the closed Hotel Syracuse. Syracuse, NY -- Onondaga County Executive Joanie Mahoney has thrown her support behind a proposed $60 million renovation of the shuttered Hotel Syracuse, offering the developers access to $15 million in state grants that was previously set aside to build a new Westin hotel next to the county convention center.
With no hope that the long-delayed Westin will be built this year, Mahoney said she supports using the state money on the Hotel Syracuse.
“We can’t wait forever,” Mahoney said Friday. “And we do have an interesting proposal to bring the Hotel Syracuse back on line, so we’re going to try to make it happen.”
Mahoney said Friday she approved a tentative agreement with developers Berkley Acquisitions LLC inviting them to request the $15 million in state grants and offering $10 million in low-cost financing to be provided by the county and the city of Syracuse through the sale of federally subsidized Recovery Zone Bonds.
Berkley would repay the bonds, but not the state grant.
If Berkley officials agree to the county’s terms, which will be delivered by letter Tuesday, the hotel could reopen as early as January 2012. Among the county’s requirements is an agreement that Berkley spend roughly $20 million of its own money before spending the state’s $15 million, Mahoney said.
Berkley officials, who have been waiting weeks for a commitment from the county, were elated Friday to learn of Mahoney’s green light. “We’ve been waiting with bated breath,” said Eli Braha, managing member. “We’re excited that our work has not been futile.”
In part, the delay was caused by uncertainty over the fate of the Westin project, which developer Wilmorite Inc. continues to pursue. Unable to secure conventional financing, Wilmorite officials devised a plan to finance the hotel by pairing it with a harness track and video gambling operation at the state fairgrounds — a scheme that required new state laws to be passed.
Thomas C. Wilmot Sr., chairman of Wilmorite, said he expected Gov. David Paterson to introduce the necessary legislation this year, but lawmakers’ preoccupation with the state budget got in the way. Paterson said last week he did not plan to pursue the matter.
Wilmot said he will try again next year. In the meantime, he believes the $15 million grant should remained dedicated to the Westin project. But Assemblyman William Magnarelli, D-Syracuse, who helped secure the money in 2006, has said repeatedly that the money can be moved to the Hotel Syracuse project if that’s what county officials want.
Berkley, of New York City, plans to buy the shuttered 1924 hotel from a receiver who is liquidating the assets of majority owner Ameris Holdings Ltd., of Israel, for an Israeli court. Braha said he hopes to close on the acquisition by Sept. 1 and begin construction by mid-November.
He hopes to have the hotel open by early 2012.
Said Mahoney: “I think it’s a good opportunity for us to bring the Hotel Syracuse back.’’
Contact Tim Knauss at tknauss@syracuse.com or 470-3023.