Syracuse IDA approves tax exemptions for conversion of former Post-Standard space at 101 North Salina into 72 apartments

The Syracuse Industrial Development Agency voted to approve financial assistance and related agreements for a project to convert roughly 44,000 square feet of vacant space within a larger building at 101 North Salina Street into about 72 apartments.

The project, proposed by 101 North Salina Street LLC, would create approximately 66 one-bedroom units and six two-bedroom units, with roughly 10% of units reserved for tenants meeting the City of Syracuse affordability requirements, and would include infrastructure upgrades and amenities such as a fitness center, bicycle and tenant storage, on-site parking and a community room.

Agency staff presented a SEQR (environmental review) package and recommended a negative declaration, saying the company completed a full Environmental Assessment Form and the agency determined the project will not have a significant environmental impact. The Board approved the negative declaration by motion of Steve Thompson, seconded by Ricky Brown; the motion carried.

The Board then approved an inducement resolution authorizing the agency to undertake the project and appointing the company as the agency’s agent for acquisition, conversion and leasing steps. Staff said the project is eligible for exemptions from state and local sales and use tax not to exceed $648,000 and a mortgage recording tax exemption in the approximate amount of $99,000 based on the application’s cost estimates. If approved, the agency agreement must be executed and returned within 14 business days, staff said.

The agency also approved an amendment to an existing PILOT (payment-in-lieu-of-taxes) schedule for the property. The building sits on a single tax parcel and is already subject to a prior PILOT from an earlier phase; the amendment backs out the 44,000-square-foot area being newly renovated and applies a new abatement schedule to the additional improvements tied to this phase. Staff noted an updated schedule was posted after correcting a mathematical error in the tax-rate calculation in a draft schedule. The Board noted the original PILOT carried a 15-year abatement period while the new abatement for this phase carries a 10-year period; beyond that the property would be taxed at 100% as applicable.

Finally, the Board approved a final resolution authorizing staff to work with the applicant’s counsel to draft and execute the necessary transactional documents, including amendments to existing agreements and any new bills of sale required to confer the approved benefits. Staff reminded the applicant that certain documents must be returned within 14 business days to move forward.

Chuck Wallace, identified at the hearing as representing 101 North Salina Street, described the project as a conversion of “underutilized tough-to-lease industrial space” and said, “we've decided to take that space, kind of proactively fill that with apartments. We know the need for housing in the city is still there ... and we feel like this is a really good use of that portion of the building.”

The Board approved the SEQR negative declaration, inducement, pilot amendment and final approving resolutions in succession; motions were made and seconded on the record and each motion carried. The applicant and staff will proceed with execution of agency documents and next steps.

The agency’s record shows the applicant will be the initial owner and operator of the completed facility and that the project includes acquisition and installation of furniture, fixtures and equipment; the lease/sublease structure will follow the agency’s standard form attached to the resolutions.