The former Syracuse Developmental Center building
/ file photo
SYRACUSE -- The Syracuse City School District's plans for a huge school renovation project may have been dealt a setback Monday, after the Common Council decided to shelve a controversial lease agreement for three weeks. Education Committee Chairman Nader Maroun explained, "We wanted to get some documentation that we haven't been provided yet."
That documentation has to do with the Health Consortium, the out of state development company which intends to take over and renovate the former Syracuse Developmental Center Complex on Syracuse's west side.
Under a 15 year lease arrangement with the developers, the school district would use the former developmental center as "swing space" for students who would be displaced by the massive joint school construction project. Up to 1,400 students would be relocated to temporary classrooms in the sprawling facility.
The lease is for $28 million. All but $2 million would be reimbursed by the State Education Department. The deal was thrown into question after published reports revealed that one of the private investors in Health Consortium, Maurice Hoo of Miami, Florida had financial problems and had been investigated for fraud but not charged. Councilors delayed a vote on the lease because they have more questions. "Are they the right people to entrust for fifteen years with fourteen hundred students?" Councilor Ryan McMahon told CNY Central.
School Superintendent Dan Lowengard is defending the lease arrangement. He says taxpayers won't pay a dime until after the work to the developmental center is done.
"Our concern is whether our lawyers have protected us through the way the lease is written, that we aren't at any risk. So quite frankly no matter what happens with this person, we're still protected. We don't pay any money."
Lowengard is concerned that the council will take longer than three weeks to decide whether to approve the lease, which could cause further delays for the school renovation project.
Maurice Hoo has not returned our call for comment.
Original Story:
The Syracuse Common Council has balked at final approval of a 15-year lease agreement with out of town developers over “swing space” at the former Syracuse Developmental Center.
Councilor Nader Maroun decided Monday to table the agreement for three weeks so they can further study the issue. Maroun’s decision follows the revelation that one of the partners in the development company, Health Consortium, had been investigated for alleged fraud involving an unrelated project in Florida.
Superintendent Dan Lowengard told reporters that he is still confident about the lease arrangement because taxpayers will be protected.
Health Consortium and the district want to enter into a 15 year lease agreement to provide “swing space” at the former Syracuse Developmental Center on Wilbur Avenue. The school district would use the center to house students who would be displaced by the renovations to a number of school buildings under the Joint School Construction Project.
The lease would cost the district $28.2 million, but all but $1.84 million would be reimbursed by the State Education Department. Health Consortium would renovate the former Developmental Center at a cost of $13 million, and pay the City of Syracuse more than a million dollars in back taxes.
A number of parents of students at H.W. Smith and Dr. Weeks Elementary Schools oppose the lease arrangement citing the inconvenience it would have on their children’s education. Some parents say the district can renovate the schools while they are occupied, but district officials say that would take too long.
The parents also are concerned about the nature of the deal between the district and the developers. A report by the Syracuse Post-Standard on Sunday revealed that one of the partners in the project had fought off a fraud investigation over a project in Florida.
