Hotel Syracuse entrance hor.JPG

The Syracuse Industrial Development Agency is considering using eminent domain to take control of the Hotel Syracuse, above. Opened in 1924, the 590-room hotel closed in 2004.

(Rick Moriarty | rmoriarty@syracuse.com)

Syracuse, NY -- The Syracuse Industrial Development Agency is still thinking about using its eminent domain power to take ownership of the closed Hotel Syracuse, but it has made no decision yet.

The agency's five directors spent about 20 minutes talking to its attorneys behind closed doors Tuesday. Ben Walsh, the agency's executive director, said afterward that no decision was made and no votes taken on whether to launch an eminent domain proceeding against the historic hotel.

Syracuse and Onondaga County officials have been frustrated with the status of the downtown hotel, which has been closed since 2004. They say business at the county's convention center just two blocks away has been hurt by the hotel's continued closure.

In May, the city made plans to seize the hotel from its absentee Israeli owner, GML Syracuse LLC, for back taxes and sell it to the Pyramid Hotel Group, of Boston, to be redeveloped.

Financitech Ltd., an Israeli company that holds a $5 million mortgage on the hotel, foiled the city's plans by paying $361,855 of the hotel's back tax bill. It was the second time the company has paid the hotel's taxes to keep the city at bay.

After being held off again, city officials said they would consider using the city development agency's eminent domain power to take control of the property.

State law allows industrial development agencies to take property by eminent domain to facilitate economic development. The city agency would have to pay market value -- as determined by a court -- if it acquired the hotel by eminent domain.

City and county officials say a renovated and reopened Hotel Syracuse would draw more conventions and other events to the convention center and speed up the revival of South Warren Street.

Once the city's financial district, South Warren Street has experienced large office vacancy rates in the past 10 to 20 years. The recent redevelopment of the former Merchants Bank and HSBC Tower buildings have started a resurgence for the street, however.

Contact Rick Moriarty at rmoriarty@syracuse.com or (315) 470-3148. Follow him on Twitter @RickMoriartyCNY and on Facebook at rick.moriarty.92.