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Hyatt Hotel to Open Next Door to Marriott Syracuse Downtown in 2017; Lost Revenue Concerns Councilor

John Smith/WAERNews

The developer of the Marriott Syracuse Downtown is taking on another multi-million dollar building renovation project right across the street.  The old Symphony Tower, which was once connected to the old hotel by a pedestrian bridge, will take $24 to $26 million to complete and will be up and running by next fall, according to Co-Owner, Ed Riley.  He says that amount factors in the work that’s previously been performed and what’s left to complete.  Riley doesn’t think the new Hyatt brand hotel will  compete with the Marriott.

Most of all, it’s an extended stay product," Riley said. "We are using a lot of the work that was previously done in the building; so it’ll be a little bit a cut above of a standard hotel of this type, but we think that fits also very well with this hotel.”

Riley credits his other business partner on the project Gary Thurston for staying focused on maintaining the property for eight years without knowing what the legal outcome would be.  The hotel will feature 120 guest rooms geared toward families in town for medical needs and will have their own built-in kitchens. Subcontracting work will be guaranteed to minority and women-owned businesses (12 percent minority and 8 percent women), and 20 percent of the workforce on the construction project will be evenly guaranteed to both minorities and women who are Syracuse residents.
Mayor Stephanie Miner feels the project will build on the successes of the revitalized Marriott Syracuse Downtown.

Credit John Smith/WAERNews
An audience and the media listen during a press conference in the Marriott's Persian Terrace about the new Hyatt Hotel.

This will ensure that the people of this community get a finite and real benefit from the renovation of this property that will also provide a benefit to our entire community and the entire region," Miner said. "This is another chance to show that public dollars can be sued for broadly inclusive economic development that is real and creates access to economic security and opportunity for the very people who live here.”

To acquire the property from the city, the new developers of Symphony Tower will pay back the city more than $1.1 million in back taxes; $500,000 of which will be advanced upfront, and the remaining balance will be paid over the course of 15 years at 12 percent interest.  They hope to start construction in January 2017 with an opening the following fall.  

Credit John Smith/WAERNews
Syracuse Hotel Developer Ed Riley

COUNCILOR CONCERNED ABOUT LOST REVENUE  

The numbers behind the agreement that will turn Symphony Tower into an extended stay hotel has at least one Syracuse Common Councilor concerned about the city’s finances and exposure to lawsuits.  

The deal would essentially allow owners Ed Riley, who renovated the neighboring Hotel Syracuse,  and Gary Thurston of Hayner Hoyt construction to write-off more than a half million dollars in fees and penalties.  They piled up during the eight years  the property was in legal limbo.  Councilor Nader Maroun worries about too many exceptions to city policy.

"Yes, it may look at face value that it might be helpful in this particular project," Maroun said.  "But if this becomes precedent setting, it begins to erode the ability of the city [to collect revenue], and it says to taxpayers, 'well, if I come up with the right deal, maybe I can get my penalties forgiven."  

But Miner administration officials seemed to downplay that concern given the larger implications of the project on the downtown landscape, and job prospects for city residents and minority contractors.  Deputy Commissioner of Business and Neighborhood Development Honora Spillane says it’s not the same as a residential property.

Credit Katie Zilcosky / WAER News
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WAER News
Symphony Tower was built in the early 1980's, and some of it was renovated several years ago before work stopped. The fate of the building and its ownership was in limbo for 8 years before the agreement was reached with Ed Riley and Gary Thurston.

"Because the project is of such a unique nature, and the ownership was in such question for eight years, it's the totality of the circumstances here, not just one simple factor that came into the term of the agreement."

Councilor Khalid Bey says exceptions have been granted to other, smaller businesses in various parts of the city. 

"This just happens to be a much larger project, and in that respect, has a greater public benefit..business-wise, constituent-wise, tax-wise, and so on," Bey said.  "So, in keeping with what was done for those smaller projects, outside  of the size of the project, the principle is not any different."

Still, Councilor Maroun says the lost revenue that could be used to hire police officers or repair roads and water mains.  He says the council’s primary role is to keep an eye on the budget.

"It's not about whether this project is a good one or a bad one.  I get that," Maroun said.  "This is just  doing our work to get answers...is it legally correct to be able to do it, and can we afford to do it with the backdrop of our deficit that's before us, and spending down our reserves."

Maroun asked the commissioner of finance where the city’s budget deficit stands, and he replied the numbers aren’t available yet.  Councilors could vote Monday on the agreement.

John Smith has been waking up WAER listeners for a long time as our Local Co-Host of Morning Edition with timely news and information, working alongside student Sportscasters from the Newhouse School.
Scott Willis covers politics, local government, transportation, and arts and culture for WAER. He came to Syracuse from Detroit in 2001, where he began his career in radio as an intern and freelance reporter. Scott is honored and privileged to bring the day’s news and in-depth feature reporting to WAER’s dedicated and generous listeners. You can find him on twitter @swillisWAER and email him at srwillis@syr.edu.