Syracuse, N.Y. – City officials are trying to make sure that construction starts early next year on what could be Syracuse’s biggest housing complex in more than 50 years.
After more than three years of planning and site preparation, the administration of Mayor Ben Walsh is pushing to get started on the first phase of a massive development at the site of the former Syracuse Developmental Center, on a scenic hillside next to the Rosamond Gifford Zoo.
But financing for the $134 million first phase of the project is not yet locked down. Most of the money will come from the state, but to secure it city officials will need approval from the Common Council.
That request will be made at the council’s meeting at noon today. Leading up to the session, one council leader said he questions whether the city is getting the best project possible.
“I have more questions than ever now,’’ said Councilor Pat Hogan, who chairs the economic development committee. Hogan, who represents the district where the development would be, said he will schedule at least one committee meeting to study the plan.
The developer selected by the city, Long Island-based Albanese Organization Inc., plans to start construction in 2026 on two five-story buildings containing 260 apartments for tenants with below-average incomes.
At the same time, Syracuse nonprofit Home HeadQuarters plans to build 27 townhomes at the site to be sold to buyers with incomes no higher than 100% of median, or about $72,500 for a single person.
That work is scheduled to take about 30 months.
Albanese officials also plan future phases of the development. They plan to build two more buildings, one to provide 100 market-rate apartments and the other with roughly 100 affordable apartments for seniors. Home HeadQuarters also tentatively plans to build more townhomes.
If fully built out, the project would encompass roughly 460 apartments and up to 85 townhomes. That would be the biggest development since the 596-unit Brighton Towers were built in the early 1970s, said Eric Ennis, deputy commissioner of business development.
And it comes at a time when Syracuse desperately needs new housing.
“It’s really one of the more transformational projects in terms of creating new housing here in Syracuse,’’ Ennis said.
City officials are focused on getting the first two buildings started, Ennis said.
Construction is expected to cost about $134 million. Albanese officials are tentatively scheduled to close in December on a package of state financing and tax credits that will cover nearly 90% of the cost.
But for that closing to occur, the Common Council has to sign off on a number of new details to be discussed at today’s council meeting.
To help bridge a funding gap, city officials are proposing to use $11 million in state funding to provide a low-cost loan to Albanese for site work. The money is left over from a $29 million state grant for demolition, which cost much less than expected (about $11 million).
Councilors also will be asked to approve new bonding of $18.8 million for the city to construct roads, sewers, sidewalks and other infrastructure at the site. Much of that cost also is expected to be covered by state funding.
It’s a complex deal, and city councilors will likely want to chew on it. It’s unlikely they will vote next week on the legislation to move the project forward.
Hogan said his biggest concern is that the market-rate housing planned for a future phase might never get built. That would alter the original concept of building homes for a wide range of income levels.
“What we want is a mixed neighborhood up there,’’ Hogan said.
Ennis said the city will retain control of the acreage planned for the two future buildings. Only the area needed for the first two buildings will be sold to Albanese at first, he said.
The Common Council voted unanimously in December 2024 to grant a 30-year payment in lieu of taxes deal that will save the developer an estimated $11.6 million.
If city officials can pull it off, the housing development would bring new life to a property that festered for years.
The former developmental center opened in the 1970s as a home for children and adults with developmental disabilities. It closed in 1998 and fell into serious disrepair under private owners.
The city seized the 47-acre site for back taxes in 2019 and cut a deal with Albanese to redevelop the property. Demolition work wrapped up this year.
The state Division of Housing and Community Renewal will provide 4% low-income housing tax credits for the first phase of the project. Those can be sold to an investor for about $44 million. Goldman Sachs has agreed to buy the credits, Ennis said.
In addition, the state housing agency will provide about $73 million in very low interest financing through its New Construction Program. The agency plans to close on that financing with Albanese in December, Ennis said.
Home HeadQuarters also is seeking state money for the townhomes, which would be built under the Affordable Homeownership Opportunity Program. The program provides up to $200,000 to buy down the cost of each home.
It’s not clear when Home HeadQuarters would be approved for AHOP funding. But Ennis said city officials expect construction to begin on the townhomes in 2026.
In return for state financing to build the first two apartment buildings, the Albanese group would charge rents that are affordable to tenants with incomes between 50% and 80% of the area median, or roughly between $36,250 and $58,000 for a single person.
Depending on income, the rents are projected to be:
$830 to $1,328 for a studio.
$889 to $1,423 for a one-bedroom.
$1,067 to $1,708 for a two-bedroom.
$1,232 to $1,972 for a three-bedroom.
Staff writer Tim Knauss can be reached at: email|Twitter| 315-470-3023.
