Syracuse, NY - A controversial deal for Syracuse to lease temporary classrooms at the former Syracuse Developmental Center is once again in jeopardy. Syracuse officials are threatening to abandon the deal if the $1.3 million in back property taxes owed by the seller are not paid by 5 p.m. today. The Syracuse City School District plans to move 1,500 pupils...
Syracuse, NY - A controversial deal for Syracuse to lease temporary classrooms at the former Syracuse Developmental Center is once again in jeopardy.
Syracuse officials are threatening to abandon the deal if the $1.3 million in back property taxes owed by the seller are not paid by 5 p.m. today.
The Syracuse City School District plans to move 1,500 pupils into three renovated buildings at the South Wilbur Avenue campus by February break. However, that depends on the campus being sold to a new developer and the back taxes being paid.
The sale was supposed to take place by today, city hall officials said. But the developers buying the property say they won’t be ready and argue they have until mid-October to finalize the purchase.
“The deal was they close by Aug. 10 or the city walks,” said Corporation Counsel Juanita Perez Williams. ’’We don’t want to do that. We want this to close quickly so the construction schedule can move ahead.”
Perez Williams said the city would give the buyers a few more days to close, but the $1.3 million in back taxes should be paid today. If not, the city may terminate the lease, she said.
The developers said there’s no reason they should have to close this week.
“We do not expect the transaction to close this week and we are not obligated to do so,” said Houston-based development partner Chris Davis. ’’We are working diligently in getting it closed as soon as possible while taking into consideration the construction schedule and the needs of SCSD students.”
Major renovations totaling about $13 million must be completed before pupils can move into the SDC buildings. The move will allow complete renovations at H.W. Smith K-8 and Dr. Weeks Elementary schools, district officials said.
The SDC buyer, Health Consortium-USA, a partnership based in Houston and Miami, would front the money to renovate the buildings and then lease them to the district for 15 years. The buildings would be used during a city-wide schools renovation program. Health Consortium-USA plans to buy the property from a Long Island-based owner that has never paid property taxes.
The $28-million lease already was controversial. On April 26, Common Council approved it in a split vote and reaffirmed the decision July 12 by the same 5-4 vote after reviewing state aid figures. The state will pay 94 percent of the lease over the 15 years. Several councilors said they were worried the deal could leave the city in a bad financial position. They were also concerned the Miami-based partner in Health Consortium-USA had about $1 million in judgments against him and was once charged with mail fraud, although the charge was dismissed.
Even with a closing by October, the buildings should be ready for pupils by February, Davis said.
Schools Superintendent Dan Lowengard said he believed the city and buyers would find a solution. Lowengard said he’s heard from the broker on the deal that it’s expected to close by the end of August.
“This thing was dragged out for months,” Lowengard said. “I can understand the developer’s perspective needing a little more time. It’s not fair to say it’s (today) or nothing.”
Meghan Rubado can be reached at mrubado@syracuse.com or 470-3260.