The first of the approvals needed for the symphony tower project came from Syracuse Common Councilors Monday, but not without some dissent. The $18.3 million dollar plan will turn the tower into a Hyatt extended stay hotel.
The agreement basically forgives more than $550,000 in penalties and fees with a promise by owner/developers Ed Riley and Gary Thurston to hire local and minority workers. City chief of staff Bill Ryan says it’s a straightforward deal that benefits the city.
"Having that property lie fallow for as long as it has, and having someone coming in and redeveloping the building...they didn't ask for forgiveness of taxes," Ryan said. "They asked for forgiveness forgiveness of penalties for a period of time when it was held by a foreign investor they had no control over. To me, that from a cost-benefit analysis, is well-worth the money."
Hotel developer Ed Riley also led the $70 million dollar renovation of the Hotel Syracuse next door into the Marriott Syracuse Downtown.
"Gary Thurston has been fighting the battle and taking care of that building for the better part of eight years," Riley said. "That's a tremendous commitment on his part to the community to make sure it didn't fall down or becoming an eyesore like a lot of other buildings have."
Council Finance Committee Chair Nader Maroun praised Riley’s efforts, but has questioned why the city needs to forego a combined $4.2 million in forgiven fees, penalties, and tax dollars.
"Had I been aware of this proposal prior to our study session on Dec. 14, I would have asked if other financial options were explored to make the numbers work, rather than a precedent-setting plan to forgive penalties and fees, a plan that is not currently eligible to others."
Maroun, who was the lone "no" vote, worries the city could expose itself to lawsuits if other developers request a similar deal and are denied.
"What protection or guarantee are there for similar 15-year tax trusts for the small business owners on S. Salina St., S. State St., N. Salina, Butternut, Lodi, etcetera," Maroun said. "I have not been aware of any proposals for equal access."
"Would there be other projects, such as a manufacturing facility or another hotel that would do this? Sure there is," said developer Ed Riley. "Are they going to take a dilapidated building and bring it back to life downtown. That's something you have to ask yourself."
The Syracuse Industrial Development Agency will consider tax breaks for the Symphony Tower project at Tuesday’s meeting. If they approve, construction could begin as soon as next month.
