Developers for a new bookstore and gym complex on University Avenue, which will also include retail stores, have drawn up a plan they hope can solve tax-related issues that delayed construction, said Cameron Group LLC partner Thomas Valenti.

Since talks about a new complex started in 2006, Syracuse University, the Cameron Group and the Syracuse city administration have been at odds over how the complex would be taxed.

The property for the complex is owned by SU and has tax-exempt status, but the university plans to lease it to the Cameron Group for construction. Upon completion, the Cameron Group will re-lease the fitness center and bookstore to the university. Once the property is leased, it loses its tax exempt status, according to a March 7, 2011, article in The Daily Orange.

Valenti said he and his associates created a proposal for a payment in lieu of taxes agreement, which is a possible solution to keep the portion of the complex used by the university tax-exempt. The structured tax payment will compensate for the tax revenue the city would lose.

‘We are going to meet with the Syracuse Industrial Development Authority on February 21 seeking its approval for our PILOT agreement,’ Valenti said.

Though the agreement would allow for the bookstore and fitness center to remain tax-exempt, the city would still generate tax revenue from the parts of the complex used for retail.

Kathleen Joy, Syracuse Common councilor-at-large and chair of the Finance, Taxation and Assessment Committee, said if the agreement is approved by SIDA, it will then be voted on by the Common Council.

‘This project is good for our economy, creates jobs, revenue and brings students down off the hill and the public toward other university-area businesses,’ said Joy, who has been a proponent of the project since its inception.

The complex, which will cost approximately $20 million to complete, would be 54,400 square feet, with the fitness center occupying 47,700 square feet. The university plans to completely move the bookstore in the Schine Student Center to the new complex. As of now, there are no plans for what will be done with the space in Schine.

‘If the proposal passes, I hope that we can begin in June and that we could open the bookstore and fitness center for the fall 2013 semester,’ Valenti said. The complex was originally expected to be complete by summer 2011, but it was hindered by the tax dilemma.

Valenti said the nature of the PILOT agreement being proposed on Feb. 21 could not be released, as it has not yet been approved by SIDA and the city council. The details will be made public information afterward.

nxsmith@syr.edu 

Published on February 6, 2012 at 12:00 pm

Contact Nick: nxsmith@syr.edu