Deal could save stalled Syracuse kids’ center project, allow senior housing upgrades

A new agreement between the city of Syracuse and Syracuse Housing Authority could restart the paused children’s learning and recreation center project planned for the $1 billion makeover of the public housing neighborhood next to the Interstate 81 viaduct.

Mayor Ben Walsh and SHA said they’ve reached an agreement on a land swap involving the city acquiring the site targeted for the Children Rising Center in exchange for an Eastwood senior apartment building currently owned by the city and managed by SHA.

The agreement is similar to one that had been proposed to the Common Council last fall but then removed from the council agenda when missed funding deadlines put the plans for the children’s center on hold. SHA had asked the city to do a property swap because it needed site control of the Eastwood Heights senior apartment building in order to close on state low-income tax credits that will fund a $25 million renovation of that facility.

The Eastwood Heights project can move toward construction this year under the deal, which must be approved by the common council.

Now included in the deal is a $500,000 payment from SHA to the city that will be put in escrow and returned to SHA if the authority meets obligations to allow the city to take over the site and bring the nonprofit Blueprint 15 group back on board as the children’s center developer.

The most important obligation is for SHA to secure federal Department of Housing and Urban Development approval of a relocation plan for tenants at the site, called Latimer Terrace, where the children’s center would be located. Because SHA has not yet executed the tenant relocation plan and turned the site over to the city, Blueprint 15 could not close on federal new markets tax credits it had secured to provide the final piece of financing on the $32 million children’s center.

Blueprint 15 announced in late January that it was pausing work on the project and said it lacked confidence in SHA as a project partner. SHA has defended its actions and claimed that Blueprint 15 has been changing deadlines on its own. Walsh has called for a change in leadership at SHA.

But amid the finger-pointing of recent weeks, the Walsh administration and SHA have been negotiating a new framework for a site swap that lays the foundation for the project to get back on track.

“It provides a clearer path for control of the Latimer Terrace site,” Walsh said. “The $500,000 in escrow is our leverage to get SHA to the end of that path.”

Blueprint 15 officials viewed the agreement as a positive step, but said it’s too early to commit to restarting its work on the project. With the federal tax credit deadline missed for this spring, the best-case scenario is to apply again for the assistance next fall if SHA successfully relocates Latimer Terrace tenants in time. The project’s costs are likely to be higher by that point, which could complicate the decision.

“It’s still a pause, but this is like a ray of light to show that things are moving in the right direction,” said Raquon Pride-Green, Blueprint 15’s executive director. “But it doesn’t guarantee that we can still execute the plan. I’m just hopeful because the people really deserve this. They’ve been disappointed enough.”

SHA Executive Director Bill Simmons said the authority has now begun engaging the Latimer Terrace tenants in the relocation plan with HUD’s oversight. He expects that all tenants will be in alternative housing by the end of June or early July. Then the site can be turned over to the city and Blueprint 15.

“There’s a lot of incentives and timeframes that should work for everybody in terms of the residents of Eastwood Heights and Blueprint 15 in terms of their funding for the center,” he said.

City reporter Jeremy Boyer can be reached at [email protected], (315) 657-5673, Twitter or Facebook.