Syracuse, N.Y. — Downtown Syracuse’s largest new hotel project since 2013 cleared a key hurdle this week, allowing developers to soon remove a dilapidated parking garage to make way for construction.
The Syracuse Planning Commission approved plans for the 10-story Onondaga Hotel planned by Indianapolis-based Sun Development at the corner of East Fayette and South Warren streets. It’s the site of an informal city park and the shuttered parking garage.
Sun Development and Syracuse Mayor Ben Walsh announced the $87 million project in January, with the goal of having it open by the summer of 2027.
The timeline has since been pushed closer to the end of 2027 because extra work was needed on the project’s budget and finances, said David Neuman, Sun’s local representative. He said increased building material costs, driven in part by new tariffs, have presented some challenges.
The 248-room hotel will be part of the Hilton chain’s Curio Collection, which is a group of uniquely named properties that are custom-built for the cities where they are located.
The hotel will also include a ground-level restaurant that will occupy two stories of a building corner, along with a ballroom, meeting spaces, a lobby bar and dining space on the top floor. The bar will include an open-air terrace, according to the documents approved by the planning commission. A rooftop bar that developers discussed when first announcing the project is no longer in the plans.
Neuman said he is optimistic demolition will begin on the Warren Street parking garage starting early next year, with construction beginning in the spring.
Sun Development purchased the seven-story parking garage in the spring for $2.1 million from Sam Galchi, who had acquired it 18 years ago for $1.85 million. After April 2023, all but the garage’s top floor was closed for safety issues flagged by the city’s code enforcement department.
The garage is now fully closed, except for the first-floor walkway from South Warren Street to the back of the downtown YMCA branch on Montgomery Street. That pathway will remain when the new hotel is open.
Sun Development needed permission from the city’s Landmark Preservation Board to demolish the garage because it’s part of a locally designated historic district. It secured that earlier in the year.
One part of the garage will be preserved. The large block letters that spell out “PARK” will be restored and placed by the entrance of the hotel garage, which will occupy the building’s first four floors and provide 317 spaces.
Sun Development is continuing to work out final details on a purchase agreement and financial assistance package with the Syracuse Industrial Development Agency.
The IDA board picked Sun after issuing a request for proposals in 2024 for redeveloping the vacant land it owns next to the garage. Dubbed M. Lemp Park, it has served as an unofficial city pocket park after the IDA acquired the site and demolished blighted buildings there more than 16 years ago.
The planning commission’s review included some hiccups for the developer. At an Oct. 20 meeting, project neighbors spoke about some concerns they had on how the hotel would impact them.
Fred Davies owns the seven-story Lafayette Building bordered on two sides by M. Lemp Park. He said the hotel will ruin the upper-story views from his office building. He was also upset that the hotel’s windows would allow hotel guests to see directly into his building’s windows. He asked that the project be redesigned. Davies was also concerned about the drainage issues because water currently runs off his property into the park.
Representatives of St. Paul’s Episcopal Church expressed worry because the church’s internet service cable currently runs through the parking garage.
Both Davies and church officials also were concerned about traffic issues on East Fayette Street because the hotel parking garage included an exit onto the street.
The planning commission held off on voting at the Oct. 20 meeting and asked the developers to meet with the neighbors about the concerns.
At Monday’s meeting, Sun Development presented a new plan that eliminated the East Fayette Street exit, and they worked out a way to preserve the church’s internet service.
They did not adjust the building plans, though, and urged the planning commission to approve the proposal because it complied with all of the city zoning rules. Commissioners agreed, voting 4-0 to approve the site plan.
