Syracuse, NY -- The owners of the former Syracuse Developmental Center are threatening to abandon a deal to sell the sprawling campus to buyers who would turn it into temporary classrooms for the city school district. The deal hangs on city council approval of a 15-year, $28.2-million lease between the proposed new owners and the school district for classrooms that...
Syracuse, NY -- The owners of the former Syracuse Developmental Center are threatening to abandon a deal to sell the sprawling campus to buyers who would turn it into temporary classrooms for the city school district.
The deal hangs on city council approval of a 15-year, $28.2-million lease between the proposed new owners and the school district for classrooms that would be used to relocate up to 1,500 students during major renovations at their schools.
It also hinges on the Long Island-based owner, Syracuse Resort Development Inc., paying its delinquent taxes. The company is trying to persuade the city to reduce the $1,325,000 bill.
Syracuse Resort officials say city Assessor John Gamage offered in the past to drop the property’s 2008 assessed value. The offer has remained on the table since 2008, and would reduce the total amount owed by about half, according to Syracuse Resort officials.
Syracuse Resort has lawsuits against the city over its assessment but has agreed to drop them at closing and pay back taxes.
“We seek to receive a fair and just tax assessment for the SDC and, accordingly, to lower our tax burden at closing,” said Syracuse Resort representative Irfan Syed in an e-mail to school district lawyer Joe Shields.
The city disagrees, arguing the offer to lower the assessment has expired. The reduction was part of a past sale proposal that didn’t materialize, said Corporation Counsel Juanita Perez Williams. Before Common Council approves leasing the SDC site, the city wants a document that stipulates payment of back taxes in full, she said.
Syracuse Resort has suggested it may instead sell the property to another prospective buyer, a nonprofit agency that has no agreement to lease space to the school district. Syracuse Resort would continue its assessment lawsuits against the city under those circumstances.
The current buyer, Health Consortium-USA, has a signed lease with the school district and argues Syracuse Resort has no right to abandon the deal. Health Consortium is a joint venture between Houston-based Davico Realty Group and Miami-based REIT Americas.
“They are under contractual obligation with us perpetually until the closing,” said Chris Davis, principal of Davico.
Syracuse Resort says it doesn’t want to walk away, but may be forced to if the city doesn’t cooperate. Benjamin said he made an offer to settle the back taxes for $1 million. The city never responded, Benjamin said.
“They are ignoring us at every possible avenue,” Benjamin said.
Perez Williams said she expected to receive the documents guaranteeing tax settlement from Syracuse Resort Tuesday. She had not received them as of 4:30 p.m.
Common councilors are split on the controversial lease, with some citing concerns about the buyers and lease terms. They voted 5-4 in favor of the deal April 26, and are likely to vote on final approval Monday. They are scheduled to discuss it at a study session at noon today at city hall.
Superintendent Dan Lowengard, who is urging council to approve the deal, said he believes the matter will be settled.
“At the end of the day the city is going to be made whole on the back taxes,” Lowengard said. “(The current owners) are just jockeying around to see if they can get the amount they owe lowered.”
Contact Meghan Rubado at mrubado@syracuse.com or 470-3260.