Conversion has begun with the 139-year-old structure at 215 W. Fayette St.
Conversion of the Hurbson Building, a 139- year-old structure at 215 W. Fayette St., Syracuse, has begun. When finished, the project will bring 14 upscale apartments to Armory Square.Work began Wednesday on one of the last remaining unredeveloped buildings in Armory Square, but a much bigger, four-building redevelopment a block away is on hold.
Developer John “Skip” Cerio held a ceremony marking the start of construction on 14 upscale one- and two-bedroom apartments he plans to put into the 139-year-old Hurbson Building, at 215 W. Fayette St.
Cerio, president of CRS Cos., a Buffalo-area real estate development company, said he hopes to have the apartments ready for occupancy in May.
The $5 million Residences at the Chamberlin is being helped by a $1.3 million grant from the state’s Restore NY program and a $250,000 loan from the Syracuse Economic Development Corp. The Community Preservation Corp., a banking consortium, is providing the construction loan and permanent financing.
David Mankiewicz — executive director of the Downtown Committee, a not-for-profit downtown management organization — said the project continues a “great trend” for the square. He noted the recent opening of an Urban Outfitters store in Armory Square, the renovation of the square’s Atrium Garage and the scheduled move next week by the O’Brien & Gere engineering company from DeWitt to the new Washington Station office building.
But construction at the $26 million Pike Block project, at South Salina and West Fayette streets, has been delayed because of a financing problem related to $2.6 million in state historic preservation tax credits.
In January, the Metropolitan Development Association, the predecessor of CenterState Corporation for Economic Development, announced the selection of VIP Structures Inc., based in Syracuse, as the project’s developer. The project was hailed as an opportunity to bring some of the success of Armory Square, a formerly run-down warehouse district, to the struggling heart of downtown Syracuse.
Work was supposed to begin in the spring to turn the historic Chamberlin, Witherill, Wilson and Bond buildings into 84 upscale apartments and 25,000-square-feet of retail and commercial space. But VIP Chairman and CEO David Nutting said the company has not been able to turn the historic preservation tax credits into cash because of restrictions the state has imposed on the program.
The credits are part of a substantial package of tax credits and grants the project has received from state, local and federal sources.
Developers often take advantage of historic preservation tax credits only by selling them to investors, like banks and insurance companies, which use them to reduce state tax liabilities. But restrictions on who can buy them, how much they can buy and when they can use them is making it impossible to sell the credits, Nutting said.
He said he hopes the state will ease some of the restrictions soon. In the meantime, VIP is seeking alternative financing sources to fill a $2.6 million gap, he said.
“We’re almost there,” he said. “It either gets fixed, or we need a workaround.”
He said principal construction might start in March or April, but that it’s possible some work will be done this fall to stabilize the buildings and prevent damage during the winter.
Contact Rick Moriarty at rmoriarty@syracuse.com or (315) 470-3148.