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The Syracuse City Common Council approved a final agreement in the redevelopment of the former Syracuse Developmental Center at its Monday meeting, authorizing a tax exemption arrangement with developer 800 South Wilbur Avenue Syracuse LLC. The redevelopment aims to address the city’s ongoing housing crisis.

The exemption agreement, reached with 800 South Wilbur Avenue Syracuse LLC, will allow the developer to proceed with the first stage of the SDC’s redevelopment. The plan will create low- and middle-income housing units on a portion of the former SDC’s property.

On Dec. 9, the Syracuse Industrial Development Agency voted to approve the exemptions, but a council vote was needed for the final authorization of the project under the Payment in Lieu of Taxes agreement.

The initial phase of the project will provide 261 units of affordable housing and an additional 27 houses near the former SDC. The agreement will span 30 years and requires over $10 million in payments from 800 South Wilbur. With the granted tax cuts, properties built under the agreement are not exempt from special assessments or additional charges.

The redevelopment project will later be followed by at least one 225-unit building with market-rate prices, said 2nd District Councilor Patrick Hogan. That building will be designed for senior citizens.

The SDC originally functioned as a state asylum in the late 1800s and became the Syracuse State School in 1927. After closing in the 1970s, the facility was reinstated as a residential facility and has remained vacant since 1998 due to changes in care practices for people living with disabilities, according to the Onondaga Historical Association.

In 2019, the city seized 47 acres of land that formerly housed the 600,000-square-foot development center because of unpaid taxes. The property is in Syracuse’ Near West Side neighborhood.

Hogan thanked the city administration for seizing the “long-infectious property” for those in the Near West Side.

800 South Wilbur will pay fewer property taxes once the redevelopment is complete as the city government has now agreed to exempt the project. This will save an estimated $11.6 million in property taxes for the company.

Hogan said the tax-exempt agreement reflects the project’s importance to the council. He said it also demonstrates the project’s potential impact on the city’s housing landscape and goal of making affordable housing more available in Syracuse.

The city faces the pressure of addressing housing concerns with over 50% of residents spending more than 30% of their income on housing, and a third spending over 50%, CNY Central reported. 72% of families in extreme poverty can’t afford rental units even when available.

“This project provides a template to address our housing issues, by building more housing through public-private partnerships and avoiding restrictive regulations that deter private investment,” Hogan said.

Construction of the new units is set to begin in 2025.

Published on December 24, 2024 at 12:09 am

Contact Anna: aclevitt@syr.edu