Syracuse Developmental Center Project Update – October 15, 2025
Syracuse Developmental Center Project Update – October 15, 2025
The meeting provided a comprehensive update on the redevelopment of the 48-acre Syracuse Developmental Center (SDC) site, a project under development since 2022. City officials, representatives from the Albanese Organization, and Home Headquarters presented the latest progress on demolition, financing, and the phased master plan. The discussion focused on Phase 1, which includes 27 owner-occupied townhomes and 261 multifamily apartments, and the complex financing structure needed to secure state subsidies.
Discussion Items
- Demolition and Site Preparation: The city selected Ritter and Perator as demolition contractor in early 2024. Demolition of the 600,000 square foot structure is substantially complete, and hydro seeding has been applied. The city will issue a design bid package in November 2024 for infrastructure (roadway, water, sewer lines) to service private development.
- Townhomes (Home Headquarters): Carrie Quaglia reported that plans are nearly final with architect SWBR. The 27 townhomes will be three-bedroom units, with 9 including garages. Sales prices are expected to be $220,000–$250,000 after subsidies. The project has applied for state AHOP funds (approximately $200,000 per unit subsidy) and county OCHIP funds. Units must be affordable to households at or below 80% of area median income (AMI), but can be sold to those up to 100% AMI. New state regulations require sprinkler systems (estimated $15,000 per unit) for townhomes after January 1, 2025, and two units must be fully accessible under Section 504 rules. The total cost is estimated at $15 million.
- Multifamily Buildings (Albanese Organization): Chris Albanese provided updates on Buildings A and B, comprising 261 units. The total investment is $134 million. Financing is through 4% Low-Income Housing Tax Credits via the state Housing Finance Agency (HFA), with Goldman Sachs as the tax credit investor (approximately $55 million in equity). HFA board approval is expected in two to three weeks, with a closing date of December 8, 2025. The unit mix includes studios, one-, two-, and three-bedroom apartments, with 10% of units designated as three-bedrooms. AMI breakdowns range from 50% to 80% AMI, with rents comparable to the surrounding Tipperary Hill neighborhood. The project is significantly “over term sheet” (the state’s standard formula), requiring additional local subsidy.
- Financing Gap and Proposed SEDCO Loan: The project is approximately $40 million over HFA’s term sheet due to construction costs and unit additions. The state has indicated it will provide additional subsidy but requires a local match of about $9 million. The city proposes an $11 million low-interest loan through SEDCO (0.25% interest, 50-year term, accrued interest payable at maturity) to bridge this gap. The loan includes $9 million for the Albanese project, $1.5 million for a utility duct bank (built by National Grid), and $500,000 for removal of concrete caissons. The loan would be funded by repurposing a portion of the $29 million state grant originally awarded for infrastructure. The remaining $6 million of that grant will fund on-site infrastructure, plus $5 million from state CHIPS funding and $7.8 million from city bonding, totaling $18.8 million for infrastructure.
- PILOT Agreement: Commissioner of Assessment Matt Oja explained that a 30-year PILOT (Payment in Lieu of Taxes) agreement has been structured, modeled after shelter rent agreements. It is based on a per-unit payment of $975, yielding approximately $250,000 in year one with a 2% annual escalator. This is more favorable to the city than standard private housing finance law permits.
- Future Phases and Zoo Expansion: Chris Albanese confirmed commitment to future phases (Buildings C and D, including affordable senior and market-rate units), which will be designed and financed after Phase 1 groundbreaking. The master plan includes a potential 7-acre parcel for expansion of the Rosamond Gifford Zoo (African safari exhibit). The city is in discussions with the county but will not cover fencing costs; the zoo expansion will require separate council approval. The city retains site control over undeveloped land.
- Management and Community Involvement: Albanese stated they will self-manage the buildings, having created their own management company after negative experiences with third-party managers. Councilor Hogan emphasized the importance of community oversight, and discussions are ongoing about including public representation on a management collaborative.
Key Outcomes
- No formal votes were taken during this informational session. The council will consider legislation amending the purchase and sale agreement (item #19) and approving the SEDCO loan in a future meeting.
- The city planning commission will review the resubdivision of tax lots on October 20, 2025, a critical step for state financing.
- The city expects to issue the infrastructure bid package in November 2025, with construction to begin in early 2026.
- HFA board approval for the Albanese project is anticipated within two weeks, with financial closing on December 8, 2025. Similar closings for the Maria Regina and East Adams projects are also expected in December 2025.
- The state’s $29 million grant is contingent on local approvals; the council’s action on the SEDCO loan and PSA amendments is needed to unlock the state’s additional subsidy.
- The project remains on track for groundbreaking in the first quarter of 2026.
Meeting Transcript
Economic development, we're going to talk about the SDC project. It looks like Mr. Ennis is uh presentation for us, which is very good, Mr. Ennis. And why don't you walk us through this very uh complicated long-term uh project that we've been working on for three years. Thank you very much, Counselor. And uh, let me let me introduce Councilor Peniagua, Councilor Mantle, President Hudson, and Counselor Navi have joined us this morning. Great. Uh well, thank you so much, uh, Counselor, and to all the counselors that joined us uh today. Uh I always try to come prepared, counselor, for uh for these conversations. So really appreciate the time to uh to discuss just the latest updates with the Syracuse Developmental Center and the various items of legislation that we have pending for consideration with the counselors and also just want to note that included in our discussion, uh also want to acknowledge Kerry Quaglia on behalf of home headquarters as well as uh Chris Albanese on behalf of the Albanese organization. Um what I would just uh start initially by saying, and I think Councillor Hogan, you just mentioned this a moment ago. This project is one that uh we have been working on since 2022, when ultimately we had the uh the initial purchase and sale agreement that was authorized by the council. This project is uh certainly complex. It is certainly, there's a number of moving parts. It is uh one of the the more complicated projects that I've worked on in my time in city government. And so one of the things we wanted to do was really talk through the latest updates on the project as it stands now, the progress that's particularly been made on the topic of financing, uh all the necessary pieces that come into play in order to actually reach uh formal groundbreaking and necessary approvals, of course, the items that we have pending right now with the council being uh key and integral part of that. And then also certainly wanted to be able to answer questions and talk through again what we fully acknowledge are are some levels of complexity here, but uh we're hoping to be able to answer those questions and and also have a you know um continued discussion about uh how to move forward. So one of the things I would also say is uh you know, this is a project that has been really a team effort, both on the side of uh the administration and the city. You know, we have uh from assessment, our commissioner of assessment, Matt OJ, who's been a key partner in this, uh, our city engineer in Mary Mary Robison, uh we have you know Joe Barry and the law department that we've worked really closely on, a lot of the the conversations about the project. And so there's a number of different colleagues, and then Michael Collins, of course, and Michelle Sapansky from Neighborhood and Business Development, really in in terms of how to move forward with building additional housing that we need in this community. So with that being said, I do I just have like very simple uh visuals just to help as a visual aid. Uh I did share and distribute a copy of a memo to really try to formally in writing explain the different legislative items as well as the updates on the project and uh and wanted to be able to talk through some of those things now. So sure. Thank you. Um so with that being said, without further ado, why don't we just get into overall some of uh some of the updates here? So just uh to a very brief overview and reminder of just the timeline of this project and and where we initially started. So the uh Syracuse Developmental Center was foreclosed uh and seized by the city for tax delinquency uh back in 2019. So we are now in year six of uh this overall redevelopment. Uh ultimately through a uh the city retained a real estate broker and had identified the Albanese organization and selected the Albanese organization in late 2021. And then in 2022, in partnership with Governor Hochel and working closely with our state partners, uh 29 million dollars was awarded to the city in order to really achieve the vision that we had set out to make this uh mixed income development, the opportunity for job creation on the site and really transform uh a 48-acre site and really something that the city has uh you know, an opportunity that the city has traditionally not had in the past. Um, after uh a lot of discussion and thorough uh review of the overall uh master plan, the common council did formally authorize that in June of 2023. So one of the things we will be talking to is that master plan is still consistent with what we initially had presented and had a significant amount of conversation about, but want to make sure that we're able to share the latest updates in terms of um how in theory that master plan would be achieved through the work of home headquarters in Albanys. Um and then ultimately um more recently an MOU or a letter of intent was authorized between the um home headquarters as well as the Albany's organization when we formally brought in home headquarters more recently uh as a partner on this development project. So moving on to our next slide here. I apologize this uh wireless mouse. It's okay, I think we're getting thank you. All right. So then just uh more more recently. So the city has undertaken the demolition on the project. Uh the city selected Ritter and Perator as our demolition contractor uh in early earlier of last year. That demolition work began in May of 2024, and we are now in the month of October here reaching substantial completion of that demolition work. We are now at the point where grass seeding has actually been laid on the site. So through a process called hydro seeding, we actually now have blades of grass that are actually starting to grow on the site following the full demolition of that 600,000 square foot structure. Um but back in June of 2024, we also had a visit from Governor Hochel. And this was at the time the funding for the 29 million had already been awarded, but at the time as well, it was then the city had already selected Albany's and home headquarters to move forward with the redevelopment as part of the city's statewide initiative to build more housing. Uh and then more recently, what we are now working on actively is preparing a design bid package that would be issued in November. So we're targeting to issue that next month. And what that would do is allow us to identify who would be the vendor and the firm that will build the infrastructure, utility, roadway, water, and sewer lines that will then make up the new roadway to service the private development. Okay, and then moving into the overall master plan.
openpublica.com