<body><div>Get the latest Syracuse news delivered right to your inbox. Subscribe to our newsletter here.On Oct. 15, 1990, what would become the ninth-largest mall in the country was opened. Originally called Carousel Center, then renamed Carousel Mall, the name Destiny USA finally stuck. Real estate agent Robert Congel’s proposal to clean up the Onondaga shoreline for development has now become the biggest shopping center in New York. From the very beginning, Destiny Mall was pitched, pushed and praised to be the next economic hub for Syracuse. But while Destiny holds value for residents, the generous tax breaks provided to the owners of Destiny USA in addition to the failed promises of economic renewal have left Syracuse in a worse position than anticipated. It’s time for the city to rethink its reliance on massive developments like Destiny USA and adopt a more sustainable and equitable approach to economic growth. During the 1980s, Syracuse was faced with empty industrial sites and dealing with a shrinking economy. Public funds were needed for essential services such as education, but by this time, funding from the previous urban renewal project was shrinking and any remaining funds were allocated to anti-poverty programs and housing initiatives. Former Mayor Tom Young’s administration sought a development strategy that would leverage private sector investment without placing undue financial risk on local taxpayers — something Destiny USA promised. The goal was to avoid significant increases in government expenditures to support the redevelopment project, which aimed to transform the city’s industrial past while minimizing financial exposure for local residents.During the planning process to expand the mall, Pyramid Management made a deal with the Syracuse Industrial Development Agency, which allowed the mall developer 30 years worth of payments-in-lieu-of-taxes and included three further expansions. Essentially, the PILOT agreement froze the mall’s tax obligations, preventing the city from reaping the full benefits of the mall’s commercial success. Under the PILOT, Congel pays only $800,000 annually in property taxes for the land beneath the mall, and the mall building itself remains untaxed. If the building were fully taxed, his property tax obligation would be around $19.4 million annually. This substantial reduction in tax liability has drawn attention to the real costs and benefits of such development deals in Syracuse. This setup, while designed to incentivize large-scale development and revitalization, raises concerns about its broader economic impact. Meanwhile, state taxpayers are funding the project through refundable tax credits, further complicating the balance between private gain and public good.Pyramid Management continued to grow its projects in the following years, with the goal of constructing a hotel and bridge to connect one of the parking lots to the mall, which was accompanied by another request for a tax exemption. Its initial request in 2014 was a 20-year tax exemption that would amount to $20 million. After re-applying, it amounted to $6.84 million dollars. The proposed benefit to the city of Syracuse would be economic growth and development along with the creation of construction jobs. <figure><img src="https://img.particlenews.com/image.php?type=thumbnail_580x000&amp;url=1dPj6d_0vk6QoGd00" alt="https://img.particlenews.com/image.php?url=1dPj6d_0vk6QoGd00" width="720" height="540" ></figure>While Destiny USA pledged that 50% of hotel employees would be city residents and 15% of construction contracts would go to minority and women-owned businesses, the financial penalties for failing to meet these benchmarks was $275,000, which is insufficient compared to the $6.84 million in property tax exemptions they receive. The sales tax revenue generated by Destiny USA has not been enough to offset the tax exemptions the mall has received through the PILOT agreements.Now, a decade after Destiny USA’s &gt;, the initial hopes of economic revitalization for Syracuse seem to have faded, with big promises of the mall’s expansion resulting in something more modest and leaving behind a complex legacy of financial and civic impacts. While the mall was initially envisioned as a catalyst for economic growth and job opportunity, beneath the surface lies a concerning pattern of wealth flowing out of the city rather than circulating within it.The recent news surrounding Destiny Mall cites a possible foreclosure and unpaid debt. Pyramid Management owes around $300 million for the mall’s initial construction and $100 million for its expansion, with total construction costs reaching $430 million. Altogether, the company is burdened with $700 million in debt.It’s important to note, the mall does hold economic value to the city. Retail jobs are the third-largest employers for residents of Syracuse, and the mall itself exists as a one-stop retail location with reliable public transportation. However, Pyramid Management has been given multiple chances and its leadership wasted them time and time again. Now that its deadline has passed again, it is time to hold the individuals responsible accountable for their actions — or lack thereof. Syracuse officials do not have many options, but there are measures that could ensure there is more economic benefit than loss. The city should reassess the current PILOT agreement to ensure the mall contributes more to the local tax base, which could involve negotiating a phased increase in payments or reducing the length of future agreements to ensure that significant tax revenue isn’t lost for decades to come.It is also important to disregard the promise that a singular project can bring economic rejuvenation. Instead of relying heavily on large projects, Syracuse should invest in a more diversified economic development strategy. This could include supporting small businesses, investing in technology and innovation or creating mixed-use developments that include housing, office space and retail to create a more resilient economy. The mall is vital, but without some accountability in the future for the debt they owe, Destiny’s foreclosure will become a reality. New leadership may be for the best, as Pyramid Management has shown to continuously promise change that is never followed through on. Although a new buyer would be taking on huge amounts of debt, it may be the best chance for the city to start fresh and keep a historical and nostalgic landmark.The city’s leadership cannot afford to repeat the mistakes of the past, and should bear in mind the importance of balancing private development with public good. The time has come for real change, not just empty promises. It’s not just about saving a mall, but instead about safeguarding Syracuse’s economic future.Sarhia Rahim is a senior policy studies major. Her column appears bi-weekly. She can be reached at [email protected].</div></body>

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Opinion: Destiny USA’s foreclosure signifies the need for economic change

Get the latest Syracuse news delivered right to your inbox. Subscribe to our newsletter here. On Oct. 15, 1990, what would become the ninth-largest mall in the country was opened. Originally called Carousel Center, then renamed Carousel Mall, the name Destiny USA finally stuck. Real estate agent Robert Congel’s proposal...