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.

Uh, and then this is again um the overall master plan that we had from originally in 2023.

What I just wanted to identify is this slide really shows you the dashed marked lines, which make up and comprise of phase one.

So phase one includes 27 uh owner-occupied townhome units that would be developed by home headquarters, as well as building A and building B that make up the multifamily apartments that would be led and developed by the Albanese organization.

And so one of the things we did want to do was be able to provide updates on just uh the latest in terms of being able to achieve and accomplish uh both aspects of phase one.

Um Carrie, if you're willing to, I just want to see if you could uh talk through just the latest updates in terms of progress being made on the uh the town hall project.

Yeah, we have uh more or less final uh plans by our architect uh SWBR.

Very pleased uh with the design of the units.

As you know, it's it's a difficult site to build on.

Um we home headquarters uh we feel like that this is a uh project where we can do what we do best is create owner-occupied housing.

I think the council is certainly familiar uh with our efforts.

Um we've uh done owner-occupied housing really all over the all over the city.

Uh we have applied for uh and fully expect to receive uh funding from the state under the uh AHOP program, affordable homeownership opportunity fund.

And that would provide uh about 200,000 uh in a subsidy for uh each um each uh unit.

About nine of the units uh would have garages, the others uh would not.

We expect the units would sell uh for uh between 220 to 250,000.

That would be the subsidized sales price.

Uh there's a lot of moving parts.

Again, we've we've applied uh for those state funds.

That would mean that the units have to be affordable to people under 80% of the area median, um, but we could actually sell them to folks under 100% of the area median.

And we want to have a to the greatest extent possible uh mixed income development.

Uh together with the uh neighborhood and business development uh team at the city.

We've also applied for affordable uh housing subsidies.

Uh, we're hopeful uh that the county through the uh OCHIP program would be able to provide some subsidies.

Um so at the end of the day, you know, we've got to match what we consider the uh total development cost uh to be the likely sales price or appraised value of the units.

A few different things uh have come up.

Um, as you might have heard, uh any permits that are pulled for townhomes uh after January 1st, these now will require a sprinkler system.

That's probably gonna add about $15,000 uh per each home.

And the state informed us that um the 504 regulations will apply.

So that means two of the units would have to be uh fully accessible.

So we'll have to make those uh those plans.

But we're really bullish and excited uh about uh the owner occupied opportunity here.

Your your funding pretty secured uh we we we had a great track record with the state, both with the Affordable Housing Corporation and uh AHOP.

Did you have a gap at one point, though?

I I I heard like the Council, there's always a gap.

Um I've never done a project where they're gonna be able to do that.

Every time you answer a question, you answer the same way.

Correct.

So um, you know, we don't have bids just yet, so uh it's a little premature to say you know what the gap is.

But the fact that we're getting deep subsidies from from the state uh and uh will certainly help, and uh obviously we'll be uh pursuing some county funding as well.

I'll have some more questions about that there, as far as the money scroll.

The sprinkler system on the um townhomes, is that tied into their regular um water heater or is there a separate tank um per unit I'm sorry, the uh the the heating units for each unit or you said you said it had to have the sprinklers.

No, they're that's an independent water line.

Yeah.

For each unit.

Each unit will have to have a sprinkler system.

Yes.

And it's only 15?

We're estimating about 15,000.

Fortunately, uh a residential uh sprinkler system will work.

It doesn't have to be a commercial uh sprinkler system.

Just you know, when um you get uh these obviously are mandates and and we have to follow them.

So not much choice there.

And it's only because it's town homes.

It's a town hall.

Correct.

And that's what the legislation affected townhomes.

They're connected.

And even though there's a lot of fire resistance between the units, um everybody wants to be as cautious as possible.

Thank you, Carrie.

So um, and then what we also want to do is just uh this was included as part of the memo of just uh call attention to within the memo on page two.

There is uh extensive amount of information about some of the latest in terms of the breakdown of the units as we look at the uh building A and building B as part of the Albany's uh redevelopment.

So total, these two buildings comprise of 261 units.

Uh this is going through the uh state's uh affordable tax credit program uh through the housing finance agency or HFA.

And so a tremendous amount of work has been going in with the Albany Albanese organization, identifying their tax credit investor and really working closely with the state to move forward with an identified date uh formally for closing.

So I just wanted to call out page two for the counselors because it does give more information in terms of the AMI breakdown, what those units are anticipated to look like, the number of bedrooms.

Um but really what I'll do is I'll turn it over to Chris Albanys to provide some of those updates on all the work that uh that Albanese has been doing on these two buildings.

So those like type credits have I mean, is it already been approved?

I mean, have you already got it, Chris?

Or uh so with HFA until you close.

Um they don't say yes or no.

We don't have a uh binding commitment letter, but um uh they've uh uh yours is four percent, right?

They have four percent tax credits, Goldman Sachs.

We have a we're now working on an operating agreement with them to finalize the deal where they're buying the tax credits about fifty-five million or so.

Um we're on HFA's calendar to close, I think December 8th.

Um, and you know, the attorneys are working on the documents.

So uh I would say that um and they go to HFA board approvals gonna happen in like two, three weeks.

That's when you really get the final word that the project's approved.

But we've been working with HFA for I don't know, two years now.

So this is the culmination.

They in over the summer they gave us a c they gave us the closing slot of December and um their board approval, like I said, it'll be in a couple of weeks.

Included on page four of the uh memo.

We also broke out that timeline and that schedule that you can see.

So again, I think these are pending dates, but based on the information we've received from Albany's as well as from HFA, uh it would be continuing to move through that underwriting, going through the respective credit committee processes uh October 30th, moving through um I I mentioned the city bidding package, so the city on a parallel track is moving forward to issue those bids um or solicit those bids beginning in November, but then it would be November um moving forward towards kind of final sign-off for closing, and then December is when the anticipated closing would be based on all the information that we have at this point in time.

So the bond closing is December 18th, but the we close with HFA, I think December 8th and go into escrow.

So in total, um our understanding of the numbers is that the buildings A and B is 134 million dollar investment for the 261 units.

Kerry, I know the last number I think for the town loans was around 15 million.

Uh is that still okay.

So those combined in terms of the the investment that is being led on the private side will will be approximately 150 million uh as we as well continue to factor in the demolition costs and the continued work here.

So um I did just you know want to be able to to have Chris share those updates and what they're seeing and the selection of Goldman Sachs as well, has been a critical piece in terms of being able to move a project like this and of this scale along.

Um, you know, similar projects such as the Maria Regina campus, such as the East Adams projects as well.

There they are looking at the same subsidy programs.

Um but one of the things that we do know is being able to uh identify that tax credit investor is such a critical part in order for the project to move forward.

Um so I I was gonna pause for just a moment because I I know that there are a number of pieces of legislation.

We wanted to be able to talk through those and just be able to give more context to to that um and what that legislation entails.

But is there any questions just in on the overall um either what was shared by home headquarters and Albany's or just the overall proposed master plan?

Well, I think you know, originally when we started this years ago, um we talked about the whole project, you know, and you know, we went out and talked to the neighborhoods and people in the neighborhoods, and we're basically it was a four-building project.

So I'm gonna ask you, Chris, I'll put you on the uh spot here.

What are the chances of that market rate apartment and those market rate apartments and the that senior citizen building going up?

Um we've done multiple projects and phases.

Um the best example is what we're doing in Suffolk County.

We've been we were awarded a 40, 50 acre site, and we are opening now our sixth building.

And this has been going on for I don't know, we were awarded the property 12, 14 years ago.

Um and each building generally we've broken ground um, you know, depending on uh the economy and other things every two to three years.

Um we're fully committed to building building C and D.

Um C would, you know, we've laid out as uh affordable seniors and D, or vice versa, as market rate.

Um the market rate building is more challenging.

Um the the rents uh for this property um making a market rate building work is challenging, but that's our intent is to figure out how to make it work.

And um, you know, we we're not going anywhere.

Uh we have you know fully intent on completing all the phases of this project.

We don't have financing, obviously lined up for C and D.

Um You said you have financing.

We have do not have financing.

We have not gone out for financing for C and D.

We haven't designed the buildings yet.

Um once we break ground on this, then we will move into design of building C and D.

For the A and B building about a year ago, we you know, we went out to numerous uh banks and tax credit investors and ran a process.

Um Chase, PNC, Goldman Sachs.

It was like seven or eight groups we went out to, narrowed it down to two or three, and then pick Goldman Sachs.

Um as I mentioned, we uh we signed a letter of intent with them in the spring.

And um the operating agreement uh between Albanese and Goldman Sachs is being uh worked on now.

We're hoping to conclude it in about four weeks.

Um and you know, in Wine Dance, again, it's a mix of market rate, portable workforce.

Um I mean, with Micron coming, it would, you know, uh you know, demand for housing will keep going up, rents will go up, that's good and bad.

Um interest rates need to come down a little, but I think we're starting to see that.

Um but you know, we're fully committed to finishing this project.

We wouldn't, you know, we uh we like projects of scale and that are multi phases.

So we're not going anywhere.

We're gonna manage, own and manage these buildings as we do on in in New York and Long Island.

Um we like scale because there are economies to it.

Just uh so for a moment, I I was trying to pull up the visual here, and I might ask my colleague Pat if he can help me with uh scrolling through the slides here.

But I know we we talked about this in the past with Wine Dance Village and Pat, could you we're gonna go through this probably quickly.

But just one one of the parallels that we're making with Wine Dance, and it was really a majority reason why we selected Albany's in the first place, is that there was a 48-acre site that was heavily underutilized.

So Pat, if you can do that aerial shot with the parking lot, um yeah, just continue on to slide 16 there.

I mean, this was, and I I don't know the exact year, Chris, but this was the original Wine Dance Village site that was previously utilized in in the town of Babylon.

And so this was a multi-phase project.

We have pictures to show kind of what those different buildings were, some of which were H HFA finance buildings, and what has transformed over a series of years is multiple phases.

So Pat, if you can show slide 17, that is ultimately what has so far the transformation of that site has been.

And so a lot of the when we were going through this process of selecting and identifying a developer to bring here to Syracuse for this project, we looked at Wine Dance as an a opportunity to really draw a lot of parallels.

And so Chris, I don't know if you want to add more context.

I just want to tell everyone what we're looking at.

So uh those were the first two buildings, the one on the right side of the page and the left side of the page, each of them are about a hundred units, combination of market workforce and affordable housing with the park in the middle.

Uh the building uh at the back of the page in the middle is an office building that has not been built yet.

Um but after the A and B building, we built a third building, which is about 130 units.

Then we built a senior building, which was a which is about a hundred units.

Um we built uh a charter school.

And in January, we're opening up um what we call building L, which is uh the largest of the buildings in this community, it's 220 units.

And we have retail on the ground floor, there's a skating rink.

Um it's been a it's been a huge public-private partnership between the state, the county, and the town of Babylon.

Um and we after building L, um we are now working on plans for another 200 unit building.

We have another two site for 200 units, and then there's a townhome section.

So we I think we were designated in 2012, so we've been at this about 12 or 13 years, and we just got an extension on our agreement with with the town and the county.

Um they extended it us six years to give us time to finish everything with an option to to go after that.

So generally we've been breaking ground, I'd say every two to three years.

So after we break ground on building A and B, the goal would be to break ground on C and D and you know, I think the contract has us uh uh 18 months within a 12-month extension.

So the way the way the language reads in the agreement between Albany's and the city is that there is a time frame from which uh the the transaction of the first lots that make up phase one is completed, then there is an 18-month period where that clock immediately starts ticking, where then Albanese is anticipated to then close on the future phases.

I know President Hudson and I were you know wondering about that because we were we were here on the council when it happened.

In fact, we were on the RFP committee too.

Correct.

I think it's important that to know, as you mentioned public and private ownership of the of the site, basically.

Uh we go over the public money that we're gonna be invested in this site.

Uh so Eric, if you could do that.

Yeah, I I certainly can break it down.

I think um just so then quickly just running through these last couple of buildings.

Um that's the senior building.

Yeah.

Um and that's the building we'll be that's just a rendering, it's not a photo.

That that's the building we're opening up in January, which is 218 units.

Did you start with the affordable down there too or not?

The A and B building, the first two buildings were 25, 30 percent market and 70 percent affordable and workforce.

It was mixed.

It was mixed.

Yeah.

Mixed income.

And that that pie chart if you can too.

So just Chris, I know this was information we had received from Albanese, but one of the things too, just in terms of the makeup of the different tenants that are comprised within some of the wine dance projects.

So the difference with this and OS, so your A and B is affordable in the plan for Syracuse.

Is that simply because the market won't bear the rents of the mixed first?

Yeah.

The rents are higher on Long Island.

So the market rate rents are uh higher than uh you know the 60, 80 percent AMI.

And um so the numbers worked, and that's how we built it.

Um this chart shows that in wine dance, if you look at the right side of the chart, blue is education.

This is what the type of employment that the tenants um the jobs that they have, uh the blue, the red on the right, and the green is professional services, education and health care uh account for about 50 percent of our tenants.

And then there's another 17 percent, which call is called professional services.

Um, you know, it it's a very thorough screening process for someone to actually get the apartment and they give us tax returns, you know, um- twos, and they have to qualify the apartments and have good jobs so that they can pay the rent.

Chris, can you also just talk about the plan for management?

I know that that's one thing we've we've had a lot of conversations locally uh about the management plan and as well as raise those with with Albanese directly.

Of course, you know, the history of Syracuse is a lot of projects aren't managed properly, and then we end up having a problem.

It's not talking about your particular uh buildings or anything like that down there.

But we've had recently we've had some real disappointments as far as some large buildings that you know weren't managed properly and other people.

That will not happen with us.

Um when we first got into so we have been building market rate housing for our from the beginning.

Um Wine Danch Village was our first uh uh mixed use uh uh mixed income project.

And because we didn't have experience with it, we hired uh a company that solely does affordable housing, and it was terrible.

And we fired them, and then we hired a national company, Bazudo, who manages apartments all over the country, and that was terrible.

So we terminated them and we created our own uh management company.

And they're our people, and we hire and fire them, and uh uh we spend more managed uh operating the buildings than our competitors.

Um, but they're they're run right.

The tenants are happy.

Um we would never we would never let someone else again manage one of our buildings.

And it it was also a financial decision.

I'm not you know, I'm not uh uh asking people to pat me on the back.

We were paying them to manage it, and we were doing it anyway.

The senior building, I know there's no e-shy component in any of these currently, but for the senior building, is that a possibility of some of those units to for each eye just because for senior um to kind of get that gap closed?

So in Wine Dance, we did I think I said 100 units, uh it's 97 to be exact.

It's not with eSHI.

It's through HFA and um they're just light services.

So we teamed up with a not-for-profit, um, they're called self-help, they're based downstate, and they provide, they have a social worker on staff, computer classes, assisting seniors if they have issues with their prescriptions or whatever.

So it's considered light services, it's not full services.

Yeah.

And as you said a moment ago, counselor, but just to confirm, uh, there is no e-shy proposed as part of the phase one that we we are discussing right now or as part of this project.

Um so I I know counselor, I I want to get into the infrastructure piece and some of the legislation.

So I want to do that.

What I just also want to briefly talk about, because I know we started talking about um, you know, how it was approached in wine dance with the different workforce or affordable or market rate and some of the the terms that get used with these on page two of the memo, what we tried to do as well was demonstrate the different uh AMI rates and what those anticipated rents would be.

One of the things we also just as part of a lot of discussion and and and dialogue, looking at just when we look at the neighborhood that surrounds the current SDC site and what some of the comparable rents are for whether you're in a two-bedroom or a two-story flat in the Tiphill neighborhood or other nearby properties, the some of the rents, particularly as you get towards that 70 and 80 percent AMI rates, are really commensurate with a lot of what the quote unquote market is within the surrounding neighborhoods.

And so as just pointing out again, we have both studios, one bedrooms, two bedrooms, and three bedrooms.

I think we heard from certain members of the council that three bedroom units was really going to be an important piece of this.

Albanese has pledged 10% of the total unit makeup will include three bedroom units, because we're simply just not building enough three bedrooms here in Syracuse.

And my understanding of the town home plans with carry and home headquarters that those also will be three bedroom townhome units as well that will be owner occupied.

Correct.

But I just wanted to point out, you know, some of the rents that we're particularly talking about.

You know, when you are at a one bedroom, you are in the 1300 and 1400 range.

Um when you get into the two bedrooms when you're at 70% of AMI, it's it's 14, almost $1,500.

Um, when you get up to 80% of AMI, it goes up to $1,700.

So these are these are comparable, but we also realize as a community, we also need to be building more of the you know affordable housing and for the the more low and lower income households.

So that is why you also see those those 50% of AMI rates.

We had a lot of conversation with the Albanese organization and really fine-tuning what that pro forma looks like.

Previously, there was a higher number, particularly of the 30% AMI units.

That has been changed to be able to better have us have a balance and be able to have that as part of the overall makeup of the project.

So I think we've heard loud and clear some of the um you know questions that were raised and some of what we talked about with with counselors, and that has been built in into the final proposal that Albanese is now working on with their tax credit investor.

Okay.

So with that being said, I know we've got the legislation piece.

So uh Counselor Hogan, do you would it be helpful if I just walk through?

Why don't you walk through it all?

Those, yes, okay, happy to do it.

And I'm happy to pause for questions.

So please, please let me know or stop me mid-sentence if needed.

Um, so item number, what I'm calling item number 19 as it is in the current agenda that has been presented, um, which is an amendment to ordinance number 650 from 2022.

This is an amendment to the purchase and sale agreement that currently exists between the city and between Albanies.

And so there's a number of things that you know, just between now and 2022, there's been changes reflected within the overall plan and structure of the project, not necessarily to the master plan, but but to basically the actual uh structure between the city agreement as well as Albany's.

And so one of the things that we've done is that we did not know the exact tax lot numbers because of the fact we are now going through a resubdivision process.

The city planning commission has been reviewing and will be reviewing on Monday night the latest version of that survey that identifies those new tax lots that would then ultimately be sold to make way for phase one.

We specifically now are able to identify what those lots are and what those boundaries are.

We didn't have that when we initially executed the uh the first PSA.

We also have clarification now that brings in the fact that we have carry and home headquarters building uh the townhomes.

Ultimately, we still view and the partnership is that Albanese is the master developer.

So Albanese has been working very closely with Carry and Home Headquarters.

They're using the same architect, a lot of the same design and project team members are the same between the two respective developers.

We actually now codify the home headquarters is part of the overall arrangement with building building the townhomes.

Um we also have the language that we're gonna be getting into in a moment that involves the low interest loan proposal uh and identified as a way to help support the project gap related to supporting the Albanese project.

And then the other pieces that we have currently existing in the site, and as part of working with our demolition contractor, there are these things called caissons that still exist in a portion of the site.

And so I learned what a case on was thanks to this project in this process.

So what I can share is that these are concrete piles that were built back in the 1970s in order to support what really is almost a terrace development.

And so there's a portion of the caseons that ultimately still need to be removed.

Now, Albanese is working with Hubert Brewer as their general contractor, so that will be locally, they will be the ones managing and supporting the project.

We fully anticipate that it's very likely some of the caseons they may run into as they're doing excavation.

So we felt at the time with Ritter and Perator, it was going to be cheaper, faster, and more efficient to have the private contractor be able to undertake that work instead of the city contractor doing it.

So there is a not to exceed clause of $500,000 that we built in and working with CNS and with city engineering that that is included as part of this PSA.

That was never initially something we were.

I didn't even know what a case on was in 2022, but we did not have that initially as part of the PSA.

And one of the final items.

Education's an important thing.

It is.

And this is, I will say, this has been a very educational uh project.

Um just that that last bullet is just um we we've had a lot of conversations, I think, as a community about that.

There's a unique opportunity here to be able to expand the Roseman Gifford Zoo with a portion of this land.

Conversations uh remain ongoing, and we're having a really productive dialogue with the county to be able to uh identify what's essentially been a uh carved off as a portion of the overall 48 acres, discussion being had with the county about the ability to expand the zoo.

Now that transaction would not happen prior to coming before the council.

So at this point, we're still looking at what the terms would be and working with the county, but we very much are confident there will be an opportunity to expand the zoo.

Um my understanding is they're looking to do an African safari exhibit, and so they would look to include that as part of the expanded land that's immediately adjacent to the existing zoo campus as is.

So all of those items are identified in the PSA.

And so though that's just a brief summary of what um that legislation entails.

There's no questions I was gonna move on to SEDCO and the low interest loan.

And what's the actual purchase price, Eric?

Just so we have that on record for the zoo property.

No, for the whole you said there's changes to the purchase price.

So that well, that is so that that 20,000 per unit is being uh that's being retained as part of the overall project.

So that purchase price language has not changed.

Um what we are working on now is the townhomes themselves.

One of the things and just the conversations with HFA and with HCR is that typically and with a lot of home headquarters projects, there's a much lower acquisition cost in terms of being able to develop those projects.

So the 20,000, and that's an arrangement directly between Albanies and the city, that is still being retained and structured as part of the PSA.

Um, what we're anticipating is that it would it would not likely be a 20,000 per unit on the the town home side in order to make sure that Carrie's able to fill that gap.

20,000 per unit on the 261 units for the that's could be yes.

So that is still um being retained, and that was part of the original agreement from back in 2022.

Yes.

Yep, and and so I what we anticipate, and and again, that technically the authorization for that sale, that's not what the legislation entails right now or for this meeting.

We would come back to the council, those do those conversations in terms of arrangement, what the terms and conditions would be for the zoo and the county.

We're still working on those things.

So in other words, we're getting five million dollars.

Correct.

Yes.

I appreciate the brevity, but yes, so I think you're as you just summarized, but essentially that's all part of the original PSA agreement.

Michael Collins, Commissioner for Neighborhood and Business Development, is I'm reading through this and I've been uh fortunate to be part of this with Eric since the beginning and when we all sat on the on the RFB committee.

This is a lot of information.

Um I just want to make sure that uh we're not glossing over important things.

One of the things that I want to be really clear about is what part of the land is being purchased, and that is um uh if if you could outline that, Eric, with uh uh with your with the I think it's the yellow, it's that yellow dashed mark.

So yeah, I we just want to be really clear.

This is not the whole site that we're talking about for a purchase agreement.

It is only specifically where they would be building.

So we would continue to maintain to your question, counselor, earlier about uh, you know, is are they committed to building the future phases?

And and we we heard yes.

We also know we still control the site after this legislation.

Um so that we still have control of of the um uh of what happens there.

Well, that property is you know right next door and adjacent to the property that's going to be developed.

So in reality, that you know that's good that we'll have it, but there's not much else we can do with it as far as unless Albanese wants to do something with it.

I mean, in reality, I well I mean we can't sell it to another developer.

We could, but I don't know if that would be, you know, I don't think any develop other developer would probably buy it.

Uh in the market that we're in right now, everybody's knocking on our door.

The point being we've got it, we've got a deal right now that as long as they adhere to it, then we will continue to see exactly what we see.

Right.

But we we do maintain control over that.

So if we, you know, they get to a point where they say, hey, this is things have changed dramatically, we still have site control.

And so I maybe I just want to make sure we're all on the same page too.

So the the purchase and sale agreement is for the entire master development.

We realize we will be selling the land in phases.

So when we say that there's there's clauses and a clock starts ticking, that clock starts ticking the minute that they acquire successfully phase one, the clock starts ticking on phase two.

So the PSA does cover the entire site.

However, the city will retain ownership of the land until they're ready to build phase two.

So let's get to the this sure.

Okay, yes, with without further ado.

Um need enough time to digest all this because without a doubt.

Um so additionally, I know that we we've had conversations started, particularly around the the development and the budget for phase one, and what essentially has amounted to the proposal being that we were to provide a low interest loan, which we would look to do through SEDCO.

Um the city traditionally does not have the capacity or ability to lend, however, we do have the ability to do that through SEDCO.

And I want to talk through for a moment to just give the context of what is necessitating the proposal for the loan and what is necessitating the gap.

So as I mentioned a moment ago, this is a hundred and thirty-four million dollar project.

We have um subsidies that were identified by HFA, Goldman Sachs buying the tax credits, um, a number of different sources coming into the project, largely of which is state supported.

There is a term or terminology that the state has called going over term sheet based on what their normal standard formula is.

And there is a significant amount of subsidy needed that goes far over what that standard formula is.

Um and so knowing and and in addition to the SDC, the Maria Regina campus project is quote unquote over term sheet.

The East Adams project is over term sheet.

And so, as part of those conversations with the state, because of both the new construction, because of the size and scale and the fact it's 261 units, which is larger than some of those other projects that I just mentioned.

We know that it is a very significant amount in which the project is over term sheet.

And so, as part of those conversations with with HFA, the discussion became the state is willing to bridge that gap, which is tens of millions of dollars and provide that additional subsidy, but they are looking to the local locality and have a local match to also help to contribute that.

That number is largely around $9 million.

That is why, and I know we have a breakdown of what that um request as part of SEDCO would be.

It's 11 million, but it's gonna be the nine million.

I'll start with first.

That is intended with the city being able to come to the table.

Now, in full disclosure, we've had conversations with Empire State Development about being able to repurpose the 29 million dollar grant that we had, which a substantial portion around 12 million dollars has already been used for the purpose of demolition, design work with CNS companies, and then now we're looking at the plans for being able to start construction on the roadway.

But through conversations with the state, we have an opportunity to repurpose uh portion of that 29 million, and that would be used, and that would provide the capital for the low interest loan.

So essentially being able to use it.25?

The structure that we have been talking about with Albany's would be 0.25% interest.

And it'd be how long would the loan be?

So this is very much still at this point, we're working through the terms, but we would be looking to likely do a 50-year term, five dollars.

I and I I don't know if I'm gonna be around but I just and I'll turn it over to Chris just in a moment.

I think but what I just want to communicate is that it's a this a unique structure.

I know I keep saying it's a complex structure.

There's because of the structure in which Albanese is doing this project, it it is not where we have been working with Carrie Quagley, I know as part of the the council was supportive of a $750,000 allocation for the purpose of the town homes.

That type of structure does not work for Albany's because of IRS complications and what they're doing with with the structure.

So the loan is a way to be able to provide that subsidy, bridge that gap to the tune of uh of nine million with the ability to then unlock what ultimately may amount to upwards of 35 or 36 million dollars that's additionally needed to get this uh very substantial project fully financed.

And Chris, I don't know if you want to add additional contracts to that.

So um so originally when we were negotiating with the HFA, the project was about um 25 million over term sheet, but then we added more units, and um obviously construction costs have gone up.

So now I think we're and at that point they wanted Syracuse to contribute nine million.

Um now I think we're a little over 40 million over term sheet, but fortunately they've increased what that local contribution is.

So it was it was intended to be a nine million dollar grant as required by the state.

We can accept a grant.

Right.

Uh because if we did, then we'd have to pay income taxes.

So what and even the new construction grant that we get from um HFA, it's also structured as a loan.

And that will also be a 50-year loan.

Um and you know, the IRS doesn't look at that as a grant because it's affordable housing.

So the IRS will allow a developer to receive a low interest loan without charging income tax on it.

And you know, on our downstate project, it's the same thing.

The state, in their eyes, they are um putting a lot of money into local communities, and they want the local governments to contribute.

So they do this all over the state.

Um they should look at our balance sheets sometimes the city of Syracuse.

Um and those those negotiations really uh uh uh are outside of our control.

Um the other thing, we're not in the uh QCT here or a DDA, whereas downstate we are, and we get a lot more tax credit, so we don't need those such a significant amount of grant money.

Can you and can you just explain what those acronyms are too, Chris?

I'm sorry.

So um uh there are maps all over the country and certain neighborhoods are in a what's called a qualified census track and or a difficult to develop area.

And if you're in one of those areas, you get a lot that those four percent tax credits, you get a lot more of them.

Is a wine dance project one of those?

It is.

Yeah.

Unfortunately, the way the boundaries work is that get us street, South Gettys is included in that QCT, but as soon as you cut over into the next census tract, it's outside of it.

Uh I know I keep mentioning Maria Regina.

Unfortunately, south of Grant Boulevard isn't a QCT.

North of Grant Boulevard is outside of a QCT.

So unfortunately, this challenge is one that home leasing has been running into as well, but they're probably in a different thing in the American Rescue Plan.

We we ran in the same problem trying to do something at Burnett Park too.

Similarly, but we ended up winning.

And not all of wine danches.

So we have a the site that we're opening up now, is a site we have two blocks north is not.

A site just one across the street from the building we're opening up now was not.

This year it changed and it is.

The lines are arbitrary.

It's it's there's no and and politically, you can't change them.

Okay, so go on there.

Okay, so and I'll continue again.

I I just want to make sure that we're um and just make Eric, sorry, so people understand.

So the 50-year loan, it's not payable over 50 years, it's payable 50 years from now, correct.

Yeah, and it'd be uh an accrued interest.

And I I think essentially the you know, we're the word and terminology I would use is we're using this as an investment to be able to make sure this project could become a reality.

So the the loan, and this is I realize this is unique.

We that we are typically not providing low interest loans as part of this size and scale of a project like this, but ultimately what it is doing is investing to be able to unlock the state's additional subsidy in order to make sure the project can go forward.

Um I I would just the thing I would note is on page three of the memo that I know I keep referencing, we have that breakdown.

Um nine million dollars being the number that ultimately we've been discussing directly um with Albanese in terms of being able to achieve that um gap subsidy that's necessary.

Additionally, there is approximately 1.5 million dollars that is needed in order to construct a utility duct bank that would be constructed by national grid.

Now we've had a lot of conversations with the law department and really looking at this um from a you know, could the city directly invest in this type of project?

Our understanding from Joe Barry and through conversations, National Grid will um own and continue to manage the actual duct bank, but it is critical in terms of building the infrastructure.

So we would be running into uh what's you know, I think we've talked about in the past this municipal gift clause or the idea of a gift clause in which the city cannot directly encumber that expense for the utility duct bank.

So again, part of it is that we would look to use SEDCO to be able to then make that investment to build that utility duct bank.

And then that last piece that gets you to the 11 million is the um $500,000 not to exceed amount for the Casons that I just mentioned a little while ago.

So um there's a breakdown to be able to show what gets you to that $11 million amount for SEDCO, but for the purposes of the Albanese private development project, it's nine million that we would be um that as proposed would be invested in terms of making uh phase one a reality.

So six million for the infrastructure, right?

Correct.

Yeah, I mean I'm just trying to get all the costs, I mean what are what the city's doing here through the state money.

Yep, and I think and this doesn't even take in the the uh pilot agreement.

Correct sort of an unusual not an unusual pilot.

Oh, I haven't seen a pilot agreement like Commissioner Commissioner uh OJ.

I haven't seen the a pilot agreement at since the Destiny project is 30 years.

Yeah, is it was a 30-year pilot in which we did it based on the amount of units that were built.

So I love the shelter income.

Correct.

Yep, and just very quickly on that, and and certainly what I wanted to ask Commissioner OJ is how how when you crafted their pilot agreement, the property didn't matter, right?

The pre the appraised value of the property or the assessment uh value of the property didn't matter, or we just want the units.

This was um Matt Oja Commissioner of Assessment.

This was designed to mimic a shelter rent agreement.

It's similar in terms of length, um, except it's one thirty-year term rather than two fifteen's.

Um, but it's uh it's a heck of a lot more lucrative for the city than what we're permitted to do statutorily under private housing finance law.

Okay, but we don't know the appraised value of the property.

No, no, no, irrespective of assessment or or full market value.

Okay.

Just on a per unit count.

I mean, it is it is a quarter million dollars that starts starts at, correct?

Right.

So I mean it's which is a significant amount for a property that hasn't been on the tax rolls ever.

Correct.

You know, um or well, it was on the tax rolls, they just weren't paying.

Um for a period of time.

Yeah, that seems to have been the problem.

Yeah, yeah.

Of the 200 years in which this site has existed, it it was on the it was on the tax rolls for about seven of which they did not actually make contributions.

Yeah.

So um like the brewers last night, what they said.

Um so just to build on what Matt was sharing.

So we we have the authority and ability, and and the pilot was through SIDA, but it was done in almost to reflect the shelter rent agreements that we've done on a number of affordable housing units.

We had the ability to negotiate.

I think we went in with a strong negotiating position with Albany's about, you know, I think we we were looking to get the greatest level of of benefit financially for the city, to which it it's approximately 975 per unit.

And so that is what's amounting to counselor what you referenced in year one, immediately upon transfer of ownership that would go to Albany's, 250,000 in taxes is collected as part of the project.

And then from there, we did include a um escalator.

So there's a 2% escalator in which that number goes up every single year.

So that is all of which, again, there's the financial piece, and that was all part of our our direct in working and negotiating with Albanies as a as a willing partner.

So Eric, I want to go back what we were saying talking about before about the funding.

Well, if we don't get the proper funding, then do we have to come back and have another discussion on this?

Um HFP has never not funded one of our projects when we're this far in.

I mean, we're they're going to board approval.

They've been looking at our underwriting for months now.

Uh they have the Goldman term sheets.

Um we've never experienced a situation where we're six weeks out and HFA doesn't close.

And um I mean it would it uh and this has been a priority for HFA.

I know it's obviously a huge priority for Syracuse, but HFA committed 29 million for the you know infrastructure uh demo, environmental.

So to do that and then not fund the project, they would they would have wasted 29 million.

I I don't see a scenario where HFA doesn't close.

Okay.

So uh I uh counselor, I was talking with uh homes and community renewal yesterday, HFA's division of that.

Uh they are uh fully expecting to close on the dates in December uh that um uh that were mentioned earlier.

This is uh the uh the governor awarded 29 million dollars specifically to this site.

This is important for the governor.

Uh so HFA is not going to not deliver what the governor has deemed important.

That's important.

So that's for this project we can get out with Maria Regina.

Uh so we're looking at a similar closing line for Marie Regina.

So it's not one after the other, it should be uh ideally we're we're seeing Maria Regina, Syracuse Developmental Center, phases one and two for the East Adams project, all four close in December.

Okay, thank you.

Yeah, sure.

Do you just add one one cat one important piece as part of this conversation, though, and based on what Chris is sharing, is that you know, all indications is that we are are moving forward and on track for that December closing.

But one of the key pieces in terms of HFA being able to do their part would be the the local the the pieces at the local level that are needed.

Now that includes, and I I purposely include it on the schedule, the planning commission.

This project will be on the planning commission agenda on Monday evening to approve and finalize those lot lines and resubdivision.

That a resubdivision is critical in terms of being able to have the local approvals.

But in addition to that, and the pieces that we have as part of the legislation we'd be talking about would be amendments to the purchase and sale agreement and then the discussion, particularly around the the low interest loan through SEDCO as a uh what essentially they need to see as a commitment of local match in order to be able to unlock and secure the the HF HFA financing.

So that's just the one piece is we are all indications are pointing to on track the at the local level, HFA is looking to us as well.

Right.

So what we're asking the council to approve and also the planning board are conditions that the state is saying these are the things that need to be finalized in order for the state to close.

So I I know we even now broached the topic of the CEDCO loan uh I think now we're getting into particularly the the remaining the 29 million dollars that was awarded from the state you know again uh I'll reference page three where we have that breakdown there is a portion of that funding that is still going towards uh infrastructure build out I know I mentioned again the next steps would be selecting that contractor with that bid package that goes out in November immediately from there once we identify and have a contract laying down utility lines water sewer conduit um and then as well as having a gravel road that becomes navigable for construction vehicles and Huber Brewer to then break ground so we have of that 29 million dollars and this would be including the 11 million dollars for SEDCO there is a remaining six million that can be invested for the purposes of that infrastructure and then in addition understanding that building the roadway is needed and that there's there's costs anticipated with that we've been working with other colleagues in in city government to look at the state's chips funding so we have the ability to do new roadway through state chips funding to the tune of five million dollars and then there is a bonding piece that would um seek authorization to bond for the remaining portion which is approximately 7.8 million.

So total bond is the the two reimbursable pieces through ESD and chips and then the other piece is our capital investment of 7.8 correct okay yeah and that's where that 18.8 million dollar number um is is coming from and that was part of the legislation that was submitted by Mary Robison and engineering.

Where are we going to get that 7.8 and so that piece would be the the but yeah through the through the borrowing structure and and through and and I I again realize and I acknowledge that this is a financial decision that needs to be made um you know when we're building roadways throughout the city and as part of the city's capital plan this would part of be part of the plan to include that as part of the city's capital plan.

I mean we all are aware that most times and my experience of the IDA and the county say most times the developers foot all these infrastructure bills usually and we're making a solid investment in this area through the public funds.

Yeah so I think no question that depending on certain areas or parts of the city or especially particularly for towns and villages and I know it can be different you know the way that from the very beginning our intent was that this would be city right of way and that the city would ultimately control and be able to have this this roadway than to the support the surrounding private development.

Correct.

Yep but also you know we will have the looking at ornamental lighting and the sidewalks and you know we have a two-way cycle track that's included as part of bicycle infrastructure.

So a lot of thought was put in as well making sure that the design meets the high quality design that's planned by home headquarters and by Albany's Eric when you talk about roadways so I guess so we we have the full picture.

Are you just talking about actually building out the roadways inside of the yellow or will we actually do work on the rest of the site yeah it's it's a great question counselor.

So the the initial phase when I talk about the utility uh everything underground that is going to be done for the entire site so the entire site will have that underground utility ready to go which would then support the future phases and the road and the road yes and then there's this the access road in which we've you know that that name again I know we have the the name street naming of Jensen Avenue and and Helen Hudson Boulevard.

So we would have the that road that connects into Seymour that access road would also be created that's necessary from a permitting perspective from there the area where it's hash marked in yellow that will become a fully completed road and I keep using like the ornamental lighting as a good example.

What we don't want to have happen is we don't want to fill it fully build out this roadway in the immediate term and then when we go to build phases C and D, construction vehicles are knocking over the lights or you know trashing the sidewalk.

So the plan would be is that we would have a fully completed road for a section where that yellow hash mark is to make sure if you are living on site on premise and this in the site you will have a fully completed roadway.

The back portion that will then be fully built out at later phases in order to make sure building C and D can happen but we don't want to have a fully completed roadway that then gets destroyed when we go to build future phase two and three and I Mary Mary's here too so I just like if there's other questions but Mary I'm hoping that did it justice in terms of uh ex explaining that.

And then let me before Mary gets up there because she can probably answer this.

So let's assume we do the right thing and give the zoo that seven acres of property so they can do their expansion does any of this include building some sort of fencing buffer or whatever we would build the buffer the zoo from the project so I what I can say is that as part of those discussions right now be that are being had with the county it is the city's position that we would not be responsible for building that fencing.

Um with the understanding the zoo, certainly, I think we're all supportive of being able to see the zoo expand, but understanding that any you know demarcation fencing, we're talking about security, there's there's key things that need to be accomplished, and we would look to the you know we are that that is our proposal and our position.

So again, there's conversations that still need to be fully fleshed out.

We want to make sure I've talked to Mr.

Donovan from SEP tag there.

We want to make sure that we secure the area too.

I mean, obviously, and so we want to be involved in how we do that.

Yeah, and and that's important to us too.

Yeah, yeah.

We keep it.

They're planning on giraffe exhibit.

I mean, it's which is when you open your windows and there's a draft staring at you.

It'll be very cool, but that it has to be secure.

So is Councilor going back to your question about the roadway again, Mary.

I I think so uh I think our our goal is that we would look to accomplish it in phases.

CNS and working align aligned with CNS as our designer, that is the way they're approaching this as well as doing it in phases, so that that way we're doing it in a way that's smart with the private development that's being planned.

So we've built in the um cost of completing the roadway in the back for building C and D and our CIP that was just submitted.

But it depends, you know, when we build and that cost is an estimate.

So I think just the final piece again.

We we've outlined the schedule and working very closely with the state with Goldman Sachs, with Albanese, with home headquarters.

Uh this is this has been an extremely collaborative project.

Um, and completely acknowledging and recognizing there's a lot of numbers.

We're we're throwing a lot of a lot of conversations around the the cost affiliated involved.

I think just the very last point I would make is you know, we are you're seeing if you point to areas like East Genesee Street, a lot of market rate housing that's under construction, um, particularly I think to the tune of around a thousand units, depending on areas and and when right now, as we sit today, Carrie and home headquarters are building a handful of their additional AHOP units.

They have their first successful AHOP allocation.

We are very confident there will be a second as part of the townhomes.

Um, you know, the the the housing construction, and we know that the housing need has never been greater.

I think what we have looked at, and while we recognize and acknowledge, again, it's a very complex structure, it's a structure that that ensures the HFA financing can be unlocked and can be in place, and that we would have a project pending closure in um December, financial closing in December, this project would be underway and under construction and broken ground in key one of 2026.

And uh be remiss for me to uh also offer that you know we've I we put together a management collaborative effort with uh SIDA, and I think it's been presented to you too, Chris.

Uh my feeling is that we're because there's so much public involvement in this, uh, I feel members of the public should be part of the management team there.

Uh and that is going to be a key thing.

I I think we can work that out.

Yeah.

I and I know conversations are ongoing.

I know that that that's one thing we'll continue to work through with uh with Albanies and then between you know, counselor with your.

And as I said before, the history in this town is the greatest as far as management of large projects like this.

And with all of our projects, we're very involved with the community.

We we remain involved in the community.

Um we've done that in Wine Dance, and we will continue to move with the city.

That community will be involved with you.

I see the head of the Tip Hill Neighborhood Association right over, Janice McKenna, who you'll get used to seeing quite a bit, I imagine, Chris.

So okay.

So just what I would say is I'm I I know Chris is available and can continue to talk through it.

Uh, we're happy to share the information, including the slides, and again that parallel track of of Wine Dance, the multi-phase development that was undertaken with Wine Dance dating back to 2012.

We very much view, and I know Albany's views, this is a multi-phase but but multi-year commitment that they are making as well as part of this project.

Thanks.

Uh any other council questions from my colleagues?

Okay.

Do you have anything new?

I I think I've said enough, Counselor.

Yeah, thanks.

Okay.

But thank you for your time because we do a lot of things.

Okay, thank you.

I'll ask for a motion to adjourn.

So move.

Second, okay.