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Developer of new police and fire headquarters in Syracuse secures $4.5 million in tax relief

Madoc Meredith August 20, 2024

Syracuse, NY – A project to create the future headquarters of the Syracuse Police and Fire Department took two big steps forward this week.

The Syracuse Industrial Development Agency approved $4.5 million in tax exemptions Tuesday morning for a private developer’s $33 million project to convert a vacant six-story factory on the city’s west side into a new public safety building.

The IDA’s action came about 12 hours after the Syracuse City Planning Commission approved the site plan for the project at 1153 W. Fayette St.

Both bodies made their decisions unanimously.

Known as the Lipe-Rollway Building, the factory was built in the 1920s to manufacture automobile and railroad parts. It sat mostly vacant for decades but was incorporated into the building by the city’s decision to move police and fire departments from the decaying public safety building at 511 S. State St. to downtown.

A private development team including Joe Gehm of the Lahinch Group and Timothy Lynn of Morrisroe Lynn Development would renovate the historic building and lease it back to the city over 19 years. They hope to start construction in October, with completion scheduled for early 2026.

The Syracuse City Council first approved the lease in late December. After city officials and developers continued to refine the plans, the council approved revised terms in July that would require the city to pay $52.1 million in rent over the 19-year period. City officials have said the cost of renovating the current public safety building, which would require finding a temporary location for departments during construction, would be consistent with the rent payments.

Because the West Side site is and would remain privately owned, it would be subject to property taxes. The financial assistance package through the IDA reduces that bill by an estimated $3.1 million over 15 years. In addition, the developers will benefit from a $1.2 million sales tax exemption on building materials and a $187,000 mortgage registration tax break. The owner would make tax payments totaling $3.2 million over the same period.

The current public safety building is jointly owned by the city and Onondaga County. Although Syracuse owns a 61% stake, it pays the county for maintenance. This year, that bill is nearly $1.7 million.

Fire and police leaders spoke at Tuesday’s IDA meeting about cramped space, lack of technology and health and safety risks in the current building. The city and county are discussing the future of the building, with the city government interested in selling it. Matt Oja, Syracuse’s assessor, said the downtown property could be attractive to private developers.