UPDATED: June 7, 2012, 10:44 a.m.

Destiny USA, an ongoing expansion project to the Carousel Center, has reached its final phase. 

Syracuse Mayor Stephanie Miner announced Wednesday that Destiny USA officials told the city that the current phase would be the project’s last, according to a June 6 News Channel 9 WSYR article.

Pyramid Cos., the developer of the project, will not build the additional shops and luxury resort that were originally planned for the second phase of Destiny USA.

Under Pyramid’s agreement with the Syracuse Industrial Development Agency, the developer has the right not to build the final phase of the project. In return, SIDA will not provide future funding, according to the article.

Destiny USA chose not to ask for sale of additional bonds for the next phase of the project, said David Aitken, a Destiny USA executive. This decision was delivered to the city government Tuesday, he said.

Although no additional bonds will be sold, this does not necessarily mean that development in the area will be permanently halted, Aitken said. At this point, the goal is to operate Carousel Center rather than to ask for additional bonds, he said.

This is not the first time development has been delayed or canceled. Pyramid has paid a total of $2.5 million to the city of Syracuse in exchange for extensions on tax exemptions granted to Destiny USA.

Construction on the project first began in March 2007, but in 2009, SIDA suspended a deadline after a disagreement between developer Robert Congel and Citigroup Global Markets Realty Corp. resulted in lost funding, according to a June 12, 2011, Daily Orange article.

In June 2011, Destiny USA’s tax exemptions were extended for an additional six months in exchange for a $1 million payment to the city of Syracuse by Congel, according to the article. An additional six-month extension was granted in December 2011. This cost Pyramid $1.5 million, according to a Dec. 6, 2011, Daily Orange article.

Despite cancellation of the project’s next phase, Carousel Center has become more of a destination, which is what Aitken said was the original goal. The mall is the sixth largest shopping destination in the country, he said. Carousel Center is projected to be the second most visited shopping mall to the Mall of America.

The grand opening celebration for Destiny USA is set for Aug 2.

cffabris@syr.edu 

Published on June 6, 2012 at 12:00 pm

Contact Casey: cffabris@syr.edu | @caseyfabris