Syracuse councilors postpone vote on Syracuse Developmental Center lease

Syracuse, NY - Common Council postponed voting today on a proposed $28.2 million lease of the Syracuse Developmental Center for the city school district so councilors would have more time to review the background of one of the partners in the deal. Councilors decided at a study session before their 1 p.m. meeting to put off voting on the...

Syracuse, NY - Common Council postponed voting today on a proposed $28.2 million lease of the Syracuse Developmental Center for the city school district so councilors would have more time to review the background of one of the partners in the deal.

Councilors decided at a study session before their 1 p.m. meeting to put off voting on the 15-year lease with Health Consortium-USA, which has an option to purchase the sprawling SDC site on Wilbur Avenue.

Superintendent Dan Lowengard has been urging council to approve the deal so that the district can use part of the SDC site as temporary classrooms during a city-wide schools renovation project. Beginning in 2011, the district plans to switch up to 1,500 students from H.W. Smith K-8 and Dr. Weeks Elementary schools into classes at the SDC site.

The Post-Standard reported Sunday that the school district's background check of the principals involved in the deal failed to uncover that one of them, Maurice Hoo of Florida, has had $1 million in judgments against him and that he fought off a federal mail fraud charge and home foreclosure.

Health Consortium is a joint venture of Hoo’s REIT-Americas Ltd. and Houston-based Davico Realty Group.

The FBI charged Hoo in 1999 with mail fraud, alleging he defrauded an Indianapolis investor of $124,000. The case was dismissed because of insufficient evidence, according to the U.S. Attorney’s Office in Indianapolis. The FBI agent who investigated Hoo said a prosecutor dismissed it in part because there was only one victim, which can make fraud cases more difficult to win.

Health Consortium promises to invest $13 million to renovate three buildings on the SDC campus and rent the space to the district for a cut rate. The company also pledges to pay more than $1 million in back property taxes owed by the current owner.

State taxpayers would pay for most of the lease. The city’s cost would be $1.84 million.

Education Committee Chairman Nader Maroun said he will schedule a committee meeting to discuss the new information about the buyers and other details of the lease.

Contact Meghan Rubado at mrubado@syracuse.com or 470-3260.