CITY

Common Councilors say luxury apartment development on University Hill needs to slow down

Madeline Foreman | Staff Photographer

The Marshall is just one of many new luxury student housing projects that have popped up on University Hill in the last decade.

Cranes and construction vehicles on University Hill, in the last decade, have often marked the sites of future luxury apartment complexes.

Developments with names such as Campus West, 505 on Walnut and Copper Beech Commons target the area’s student population. Per-bedroom rents can cost residents an upward of $1,500 a month, and more buildings are on the way.

But as developers continue to build apartments on the Hill, new Syracuse Common Councilors representing neighborhoods near Syracuse University say future construction of similar projects needs to slow down.

“I feel like we have enough,” said Latoya Allen, who was elected last November as Common Councilor of the 4th district to represent some of the university-area neighborhood and parts of SU. “Because right now, it seems as if we don’t even have the means to fill the ones they’re building right now.”

The Marshall, an eight-story, 287-unit luxury student housing complex near Marshall Street, is expected to open in fall 2018. And another housing project, called Theory, is being built on East Genesee Street.



Allen’s sentiment, shared by some of the city’s local leaders, marks a departure from Mayor Ben Walsh’s support for residential development projects near SU and Interstate 81.

map-of-luxury-housing

Anna Henderson | Digital Design Editor

On the campaign trail, Walsh detailed his support for mixed-use residential and commercial projects similar to The Marshall, which combine retail, restaurant and residential spaces in the same building.

“I revised the uniform tax exemption policy, for SIDA (Syracuse Industrial Development Agency), which allowed us to prioritize mixed-use development, mixed-income development,” Walsh said during a campaign event in late October. Walsh was not made available for an interview for this article.

The uniform tax exemption policy details the qualifications for certain tax breaks in Syracuse.

Though most of the past and current University Hill housing projects started during former Mayor Stephanie Miner’s time in office, SIDA approved tax breaks for mixed-use apartment complexes — such as the luxury Copper Beech Commons project in 2011 — while Walsh was executive director of the agency.

Nora Spillane, SIDA’s current executive director, said in a statement that the city is looking to encourage density in the university neighborhood, particularly in the East Genesee corridor.

“We’ll continue to evaluate each new project based on the pros and cons of development opportunities, student housing needs, and market demands,” Spillane said.

Walsh’s campaign platform listed University Hill as one of the “most sought after” residential and commercial real estate areas in the region. He promised to “aggressively” take steps to maximize the business potential of areas, including sections of the city near SU, within the first few weeks of taking office.

Beyond a possible 1,050 student enrollment boost at SUNY-ESF, demand for student housing on University Hill is unlikely to significantly rise in the near future. SU is considering implementing a three-year on-campus housing requirement, which could cut down the number of students annually seeking off-campus housing.

Since the end of 2016, SIDA has approved projects that will add more than 1,200 beds to University Hill by the end of the next academic year.

If students shift from off-campus houses to the luxury apartment complexes, some officials said the increase in beds on University Hill without a significant rise in demand could empty the university-area homes currently filled by students.

Joe Driscoll, Common Councilor of the 5th district — who represents parts of the university-area neighborhood, including Thornden Park and Westcott Street — said he’s concerned about the effects the drastic increase in luxury student housing could have on his district. Like Allen, he said he worries housing supply could outpace demand.

“There’s definitely going to be some losers in this development,” said Driscoll, who was also elected in November.

If students choose to live in the apartments, houses currently designed for students in the university neighborhood will need to be renovated to accommodate families, Driscoll said.

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Madeline Foreman | Staff Photographer

Jared Hutter, a developer of The Marshall project, said he isn’t worried about filling beds in his new apartment complex. Hutter said he believes there’s demand to live in The Marshall, even with the potential three-year housing requirement at SU and construction of new apartment buildings in the area.

“We have a boutique building,” Hutter said. “The demand, how we have seen it, is just off the charts.”

Walsh, who billed himself on the campaign trail as a pro-development mayoral candidate, took in thousands of dollars in contributions from developers and construction companies, New York State Board of Elections records show.

Hutter gave $2,400 to Walsh’s campaign, according to financial disclosures.

He said he hadn’t met with Walsh since he was the city’s economic development director and didn’t know about the mayor’s plans for development on University Hill in detail. Plans for The Marshall were finalized under Miner’s administration, so Walsh hasn’t been involved in its construction, Hutter said.

Norm Swanson, who owns multiple luxury housing complexes on University Hill and is planning another development on East Genesee Street, gave Walsh’s campaign $1,000. Swanson did not respond to multiple requests for comment on this story.

Khalid Bey, currently an at-large Common Councilor who has represented the 4th district in the past, said he supports mixed-use development and the aesthetic aspect that new buildings bring to the city.

Bey said, though, he’s concerned about the ability to sustain continued development at the apartments’ current rents. Bey said there are questions from the Common Council and business community about the success of projects that have already been built.

And if any future projects want the city’s approval, “they’d probably be under a warranted amount of scrutiny,” Bey said.





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