Voting on a tax exemption request for the proposed University Avenue bookstore, fitness center and retail space was postponed by the Syracuse Industrial Development Agency during a public meeting Tuesday.

Thomas Valenti, a partner with The Cameron Group LCC, presented the private developer’s plans for the 85,000 square foot building on 601 University Avenue. The Cameron Group is seeking tax-exempt status for the top floors of the building—more than 90 percent of the space—where Syracuse University will lease space for a bookstore and fitness center.

The Cameron Group is prepared to pay real estate tax on the 7,300 square feet of retail space on the first floor of the building if the board approves the proposed payment in lieu of taxes, or PILOT agreement, Valenti said. But during the meeting attendees raised concerns about granting a for-profit company tax-exempt status and how the building would affect local retailers on Marshall Street.

Board member Catherine Richardson, who led the meeting in Chairman William Ryan’s absence, asked board members to consider postponing voting to think more about the decision. The three present members voted in favor. The next public meeting is set for July 19, but may move to July 26, said Ben Walsh, executive director of the agency. Walsh said the request may not be resolved then.

John Gamage, board member and former assessment commissioner, firmly opposed the proposal, and said he disapproved of a for-profit group generating revenue off of a tax-exempt institution and would vote against the request.

‘As someone concerned about taxes and the burden that our citizens pay, this proposal makes absolutely no sense to me,’ he said. ‘If it’s privately owned and it’s for a profit, you should be paying.’

The Cameron Group would be responsible for the design, construction and management of the structure, Valenti said. The Cameron Group would enter a 30 year ground lease agreement with SU for $1 a year. At the end of the thirty-year period, the property would revert back to SU and fall under the university’s ownership. If the company receives support from the city for permanent financing, it would make an upfront payment of $250,000 when the building opens for use.

The total cost of the project is more than $20 million. The company is also applying for a sales tax exemption on construction materials worth $600,000 and will be eligible for a mortgage recording exemption of $200,000, Walsh said. If the primary request receives the majority vote from SIDA, the company will then seek the Common Council’s support.

Valenti said the relocation of the bookstore to the new building would free up space inside the Shcine Student Center for student groups and clubs to use. He added the new bookstore would have extended hours during the summer and academic breaks.

‘This project would put Syracuse University on equal footing with other national universities,’ he said. Valenti cited examples from both Notre Dame and the University of South Carolina during his presentation.

He also said the new structure would increase recreational activity at SU, pointing out the university’s recreation space is 15 percent below the per capita square footage standard by the National Intramural Recreational Sports Association.

Joseph Lore, director of the Department of Recreation Services at SU, spoke in support of Cameron Group. During his 26 years at SU, he said he has heard students’ complaints about the university’s facilities.

‘I’ve heard them say that Schine Student Center is not really a student center,’ he said. ‘They compare it to other colleges. It’s a joke, literally a joke.’

Chris Keevil, general manager at The Copy Centers inside Marshall Square Mall, was present at the meeting to express his concerns about the project. He wanted to hear more about the retail space that could attract hoards of students, and cause an up-tick in competition, he said.

‘It’s something that would potentially affect our business and the traffic flow,’ Keevil said. ‘As far as the tax exempt status, and whether they lease it or build it, I think the university is a pretty powerful entity—if they want something to happen, it’ll happen.’

Valenti said he was not surprised by Tuesday’s decision to postpone.

‘I didn’t expect a voting today,’ Valenti said. ‘It’s a big decision and it deserves substantial discussion and thought.’

The project has been in the works since November 2005. Construction could start as early as September in anticipation for a fall 2012 opening if the project receives approval, Valenti said.

kkim40@syr.edu

Published on June 22, 2011 at 12:00 pm