Syracuse, N.Y. -- The city of Syracuse plans to sell an historic downtown building that has housed government offices for more than 30 years to developers, who will re-purpose it into a combination of commercial space and housing.
The city announced its plans for the 153-year-old flatiron building that currently houses City Hall Commons on Wednesday.
The city plans to sell City Hall Commons to Hanover Real Estate Development for $850,000, and the developers said they plan to put $13.2 million into the building at 201 E. Washington St.
The building was built in 1869. Three more stories were added in 1894. A glass atrium was added in 1985.
The administration said selling the aging building to a developer makes more sense than attempting to make the upgrades itself, and that the sale will put the building back on the city’s tax rolls.
“We are taking another major step in our efforts to generate new income from city assets,” Mayor Ben Walsh said. “And we are achieving better uses for under-utilized, under-appreciated and under-invested-in city buildings. In doing so, we are focusing on our core business.”
In order to free up the building, the city plans to move several government functions to another office building.
The city’s permitting, code enforcement, neighborhood and business development, fire prevention and police office of professional standards will move to One Park Place, one of the city’s biggest office buildings. It plans to make the transition in the first quarter of 2023.
Adam Fumarola, one of two founders and partners at Hanover Real Estate, said the company intends to spend 2023 developing plans for the space. He said he envisions the flatiron building becoming a mixed-use space that has businesses on the ground floor and housing on the other six stories.
The sale of the building still requires Common Council approval.
Four Common Councilors attended an announcement for the city’s proposal. Those in attendance included Pat Hogan, Rasheada Caldwell, Amir Gethers and Jen Schultz.
Adam Fumarola talks about the plans that Hanover Real Estate Development has for the former City Hall Commons.
Luke Esposito, the other partner at Hanover, said that after the planning is finished and ground is broken construction would still take at least 12 to 16 months.
Hanover plans to preserve the historic appearance of the exterior. It is unsure about the attached atrium, which looks out of place compared to the rest of the building.
“I’m a fan, although I know some people aren’t, of this atrium,” Fumarola said. “I think it can be a cool space that can be used in a creative way. But we’re in the beginning of the process.”
Fumarola said they plan to make the housing a mix of market-rate apartments and affordable housing. He said the exact mix has not been determined.
“Mixed-use but also mixed income was important from the city’s perspective, especially in a property that we own and operate,” said Eric Ennis, the city’s deputy commissioner of business development. “It’s a mix of affordable and market-rate units. Making sure it’s accessible and equitable were key parts of the project.”
Walsh said the project might receive additional financial incentives or tax breaks but that has not been determined.
The developers are heavily involved in projects throughout the Hanover Square neighborhood. They own the building that houses Water Street Bagel, the building that houses The Evergreen bar and the building that is the former home of J. Ryan’s.
The city is moving its offices a few blocks from City Hall Commons to One Park Place, which is owned by Zamir Equities. It is located at 300 South State Street.
The city said it would not provide the terms of its lease at One Park Place without a freedom of information request.
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