Syracuse IDA approves tax-abatement package for conversion of 311 Gannett Drive into 75 apartments

The Syracuse Industrial Development Agency approved inducement, pilot and final resolutions to grant financial assistance to Swanson Fulton Street LLC to renovate the historic building at 311 Gannett Drive into a 75-unit residential complex, agency staff said at a public hearing and subsequent board vote. The package includes exemptions from State and local sales and use tax, and a mortgage-recording tax benefit; staff cited maximums of $804,525 for sales and use tax exemptions and $101,250 for mortgage-recording tax relief.

The project will convert an approximately 83,402-square-foot, three-story historic building on about 1.99 acres into 75 apartments, of which 67 will be market-rate and eight will be income- and rent-restricted under the City of Syracuse zoning limits. The proposed unit mix is 7 studio units, 60 one-bedroom units and 4 two-bedroom units. Site and building amenities described in the application include a fitness center, an outdoor terrace, an interior light court, new windows, an elevator, a new HVAC system, upgraded electrical and water service, roof and masonry repair, roughly 30 rentable storage units, about 25 indoor parking spaces and 52 gated outdoor parking spaces.

At the public hearing, Grazi Zizarro, the project applicant, said the building has been vacant for “at least 25 years” and that the project has City Planning Commission approval and plans in place. “We hope to just get the project underway, hopefully by November, December this year,” Zizarro told the board. Agency staff said the expected construction timeline is about 12 to 13 months, projecting completion around January 2027 if the team begins work this winter.

Agency staff noted the project is pursuing historic tax credits as a primary financing mechanism. Eric (agency staff member) read the statutory public notice and the project summary at the hearing, and said the City Planning Commission declared itself lead agency for the State Environmental Quality Review Act process; accordingly, no separate SEQRA determination was presented to the IDA. The IDA’s finance committee reviewed the project on Sept. 9 and made a positive recommendation to the full board, staff said.

Board members approved an inducement resolution authorizing the agency to undertake the project and to enter into agency and lease/sublease arrangements; a pilot resolution adopting the Uniform Tax Exemption Policy (UTEP) pilot schedule that extends the abatement term to 20 years because the property qualifies as an eligible historic property; and a final resolution authorizing agency counsel to work with the project sponsor’s counsel to draft the remaining transaction documents. Each resolution was approved by voice vote after motions were made and seconded: the inducement motion was made by Steve Thompson and seconded by Ricky Brown; the pilot and final resolutions were passed by similar voice votes.

No members of the public spoke in favor or opposition during the hearing, and board members had no substantive unresolved questions when they moved to vote. The resolutions state that property taxes will continue to be paid on the property’s existing assessed value, with abatements applying only to improvements as described in the UTEP and the pilot schedule. The agency packet included a cost-benefit analysis and the formal application for financial assistance as supporting documents.

The board directed staff and counsel to finalize transaction documents consistent with the resolutions. Staff noted that counsel was not present in the room but would be available by phone and that any legal clarifications would be resolved with counsel prior to final implementation.

Less critical procedural items concluded the hearing: the sign-in sheet at the back of the room will be used to record attendees, agency staff said, and the board will notify the project sponsor of next steps under the agency’s standard closing procedures.