In a continued effort to rehabilitate Syracuse’s Near Westside, Syracuse University is contributing $2.2 million towards the Lincoln Building renovationSyracuse University is contributing $2.2 million toward renovating the Lincoln Building. SU hopes the work to the Lincoln Building will bring investments and development to the area.

Syracuse’s Common Council awarded the Near Westside Initiative, the restoration group led by SU, a grant Monday that allow it to pay low taxes at a steady rate. Common councilors granted the Payment in Lieu of Taxes because the Near Westside Initiative will put the Lincoln Building to commercial use.

‘It helps them because it gives them a chance to get the building going,’ said Councilor-at-Large Kathleen Joy, a Democrat.

But council members questioned the renovation, criticizing SU’s motive for investment, the tax grant and the way the Near Westside Initiative’s acquired the Lincoln Building.

The Lincoln Building occupies 30,000 square feet, with the bottom two floors of the 100-year-old building being used as commercial space. The Near Westside Initiative is negotiating with two organizations interested in using the space.

The top two floors will have five residential or work units on each floor, said Don Western, the SU executive director of communication engagement and economic development for the Near Westside Initiative. Western said he is not concerned with the council’s criticism.

‘It has a history with the program,’ Western said of the council. ‘They support the PILOT, they’re just reminding people they don’t like it.’ said Don Western, the executive director of communication engagement and economic development at SU for the Near Westside Initiative.

SU does not have the final choice in what projects the Near Westside Initiative will choose. But Western said he doesn’t believe the board that controls the program will do anything the university strongly opposes.

One of the issues dealt with where SU is getting the $2.2 million. SU owes the state $2.2 million in expenses for other buildings projects they controlled. But instead of paying the state directly, SU will pay off the debt by investing the money in the Lincoln Building renovation, Western said. Grants and banks loans will provide an additional $1.7 million, he said.

Under the low-tax program, the Near Westside Initiative will pay taxes based on a $60,000 assessment of the property. The group paid $400,000 for the building in February knowing the property was worth $60,000. The Near Westside Initiative felt the building would play an important role in the area’s development despite the high price, Western said.

Common Councilor Rory McMahon (D-District 3) said he opposed setting up the low-tax program based on the lower assessment instead of the amount the Near Westside Initiative paid.

‘The devil’s always in the details,’ McMahon said. ‘What’s the message we’re sending to the public when you give someone a tax break on $400,000, based on $60,000?’

Because the Near Westside Initiative is a nonprofit organization, it would usually be exempt from paying taxes. But the Common Council decided the organization should pay taxes because they are using city grants like other businesses, Joy said.

Syracuse Common Councilor Pat Hogan (D-District 2) expressed problems they had with certain parts of the project and the PILOT plan.

‘I want to see the money used for middle-income housing,’ said Hogan, who represents the Westside. ‘The projects SU takes on are too big. I’m not really enamored with the project.’

Hogan said he feels the program has lost some direction since key personnel in charge in The Near Westside Initiative left four years ago.

‘The key thing and the original idea is to have people from around the country that would buy units here in the Lincoln Building,’ Hogan said. ‘Now, this is all local. When you bring people in from out of town, they bring money in from out of town. This is just reshuffling pieces on a chess board.’

krkoerti@syr.edu

Published on September 29, 2009 at 12:00 pm