New York state Supreme Court Judge James Murphy’s recent decision to dismiss part of the city’s recent lawsuit against COR Development Company is sure to harbor ill will.

Over the past few months, a battle has been raging between the city of Syracuse and COR Development Co. over a project to revitalize the city’s harbor district. COR was chosen to develop the 28-acre plot of land back in early 2012, and the city has since signed over the land for nearly $2.8 million, as reported by Syracuse.com.

Problems arose as the city and COR began to look toward making a payment in lieu of taxes which the Onondaga County Industrial Development Agency would approve in December 2015. The city, who opposed the deal and was adamant that COR promised not to pursue a payment in lieu of taxes when they were first sold the land, immediately filed suit against the developer.

The current situation between the city and COR only serves to embarrass both parties and, most importantly, derail a mutually beneficial economic opportunity for Syracuse. As parties from opposite sides of the table weigh in on the issue, we’re left with a textbook example of how not to mingle private and public sectors.

Peter Howe, an assistant professor of economics at Syracuse University’s Maxwell School of Citizenship and Public Affairs, echoed thoughts of mistrust, explaining his “’suspicion of business’ involvement in government.” He continued to say that campaign funding and private contributions can “create a conflict of interest.”

Again, it is important to remember that there are no winners in this legal duel. COR, who has already come under fire from the public, may continue to look like the villain. The payment in lieu of taxes deal they’re seeking comes with considerable financial concessions already forfeited by the city.

Members of the Syracuse Urban Jobs Task Force have already been protesting the company after they made no assurances to hire underprivileged city residents for jobs in the Inner Harbor, according to the group’s representatives.

Though perhaps clean legally speaking, the company’s reputation will likely be damaged in the city for years to come. Their insistence on more and more financial breaks from the city and pattern of excluding urban workers, so far, makes their ambitions seem cold-blooded.

Syracuse residents are no strangers to harmful tax deals after awarding Destiny USA a 30-year  property tax exemption in 2002 worth millions of dollars. It’s as if this folly by the city has become a standard for companies like COR to strive toward. If the city suffers economically due to decreased tax revenue, the city’s consumers may have less capital to spend on the harbor renovations, whereas investing in Syracuse could pay dividends due to increased business in the harbor district.

As for the city, their position seems to be one of poor judgment and negotiation. The city should have aimed at securing COR’s promise to not to seek a payment in lieu of taxes far sooner in the development process.

Several former Syracuse councilmen, whose voting records back this up, had voiced their reluctance to sign over the land to COR prior to this battle because they made no such promises. The decision to move forward without a contract in place seems like a careless gamble the city is now scrambling to rectify.

We must remember that before anything else, COR is a business and a business will always try to make money. It would be altruistic of COR to have not sought the payment in lieu of taxes and promised to employ underprivileged workers, but they are by no means legally obligated to do so. The city, on the other hand, has shown a reckless agenda that they’re now trying to salvage.

Moving forward, it would be pleasant to see our city and local businesses work to secure mutually favorable deals that will simultaneously benefit the public, which is the lifeblood of both parties’ success. Cooperation is best for all involved, and is the best path to revitalizing our community.

Theo Horn is a sophomore political science and public policy dual major. His column appears weekly. He can be reached at tahorn@syr.edu.

Published on January 25, 2016 at 1:15 am