From April to October each year, restaurants, coffee shops and bars across Syracuse have a way to take advantage of the nice weather: They set up seating on the public sidewalks for outdoor dining.
But a new city audit issued just as the season ended last week found major problems with the city’s enforcement and oversight of the permits. It also suggested a new “modernized” permit and fee system.
“What we found in this audit was two sets of standards: a convoluted and slow system to achieve compliance from those who sought to follow the rules, and lax enforcement for those who did not,” City Auditor Alex Marion said in his introduction to the report. “... A more efficient, effective program can drive revenue, protect the City and patrons alike, and ensure we can all share our sidewalks safely and accessibly.”
The Findings
More than two dozen businesses used the sidewalks this year without getting the required city permit, according to the audit. That includes downtown and business districts such as Westcott Street, James Street and more.
Each year, about 30 to 35 businesses seek the permits.
In addition, many locations received permits despite being in violation of other city codes that appear to have been overlooked. Some are violating the terms of the permit itself, such as failing to keep six feet of the walkways clear to foot and wheelchair traffic, or blocking fire connections.
“The audit found no city department or employee is taking the active responsibility for monitoring or enforcing the rules of sidewalk cafés,” the report said. “Audit staff found no evidence any inspections took place.”
About a half dozen or so sidewalk permits were given to businesses that do not have a “certificate of use,” the most basic operating permit the city issues, Marion said.
And the city raised just $4,000 from the fees it is supposed to collect for permits. That doesn’t even cover the cost of enforcement, Marion said. Permits costs now range from $50 to $300 depending on the size of the space. The average permit costs $150 for the season.
“It’s not the fault of the businesses,” Marion said. “It’s the city’s fault for not having clear rules and not following through with outreach and inspections.”
“Good licensing and permitting can help grow business,” Marion said. “When everyone knows and the follows the rules, it’s good for business.”
Several business owners said they’d welcome more clarity on the program from the city.
Adam Gold, owner of Funk ‘n Waffles in Armory Square, said he didn’t know until he was contacted by syracuse.com that he was on the list of places that didn’t have a permit for 2025.
“I guess we forgot,” said Gold, who sets out four tables on the sidewalk in front of his restaurant on South Clinton Street. “And I guess the city doesn’t bother to follow up to see if you have one.”
Cheryl Hassett typically sets out three tables on the sidewalk in front of her popular downtown lunch spot, Soup R Salads on South Warren Street. She’s also on the list of those without a permit.
“Why wouldn’t they come in April to check that out?” she said. “That would make more sense.”
The Recommendations
Marion made several recommendations to improve the system in his audit.
Chief among them are better communications between the city and the businesses, and a more “centralized” system for those who work in codes enforcement and other city offices that issue licenses and permits.
He also recommends allowing business to obtain year-round sidewalk permits if they demonstrate the capability to do so. That would include a requirement to clear snow and use salt as needed.
“Encouraging outdoor dining year-round enlivens commercial areas and creates placemaking opportunities,“ the audit said.
Beyond that, Marion recommends what he calls “modernization” of the permits themselves. That would include a mandatory annual $100 inspection fee for all businesses.
And instead of one type of permit for all businesses, he would break them into three categories:
- Daytime/Alcohol-Free Service: This applies to businesses that do not serve alcohol and close daily by 6 p.m. The fee for this permit would be $5 per seat, plus the inspection fee.
- Evening/Alcohol Service: This would apply to any business that serves alcohol or remains open until midnight. The fee for this permit would be $25 per seat, plus inspection fee.
- Late-Night Club Service: This would be for any business that serves alcohol, remains open until 2 a.m. and uses the public right-of-way for people to line up for admission. This would be a flat rate of $3,500 per year.
Businesses that have seating and then transition to a late night club with admission lines would be required to have both, the audit recommends.
The new system could at least double the revenue the city gets from the permits, Marion said.
And he believes it just make more sense.
“Why should the little lunch place that’s only open a few hours have the same permit as a bar that’s open late and demands more city resources?” Marion said.
In its official written response to the audit, Mayor Ben Walsh’s administration appeared to agree with some of Marion’s findings and recommendations, especially regarding improvements to communication and coordination.
In some cases, it disagreed. For example the city administration indicated it only requires that businesses have applied for a certificate of use for a permit. It says issues with the certificate are often the responsibility of the landlord, not the tenant business.
And it did not support the new permit and fees plan.
“The Department of Public Works (DPW) believes that the proposed fee structure would be unsustainable to verify and enforce at this time due to funding/staffing challenges,” the administration said in its response.
The administration also cited staffing shortages in its responses to several other of the findings and recommendations in the audit.
Gold, the owner of Funk ‘n Waffles, is also concerned about the new fees. He notes that businesses operating downtown are already assessed a special fee on top of regular taxes.
The current city ordinance governing sidewalk permits took effect in 2011, and was meant to generate revenues and set rules. Before that, dating back to the 1990s, the city issued less formal guidelines for sidewalk use, with no fees.
Changes to the current ordinance would have to be approved by the Syracuse Common Council. A new city administration, under newly elected Mayor Sharon Owens, takes office in January.
Despite the criticisms in the audit, Marion said he believes rules are necessary.
”The permit program is critical, however, because it protects the city from legal damages and frivolous lawsuits that could arise from problems happening within our right-of-way," he said in the report.
