M E M O R A N D U M

							March 23, 2010


To:		Members of the Board of Trustees 

From:		Nancy L. Zimpher, Chancellor

Subject:	Kennedy Square Project - SUNY Upstate Medical University 


        I recommend that the Board of Trustees adopt the following resolution:
        
Whereas SUNY Upstate Medical University has acquired a 13.5 acre site adjacent to its campus, previously the site of a low-income housing complex, and seeks to develop a portion of  the site for technology, research and development, recreational, housing and commercial use (�Kennedy Square Project�); and

Whereas Upstate Medical University�s business plan anticipates a public-private partnership to develop the Kennedy Square Project and that Upstate will enter into a ground lease to support development; and 
  
Whereas legislation is required to authorize Upstate to enter into such a ground lease; and 

Whereas the New York State Public Higher Education Empowerment and Innovation Act, Part E of A. 9707-A/ S. 6607-A (�PHEEIA�), introduced by the Governor and pending in the Legislature, authorizes such a ground lease; and 

Whereas Upstate Medical University proposes to develop the Kennedy Square Project in accordance with the principles set forth in the PHEEIA applicable to such ground lease and public-private partnership; now, therefore, be it

Resolved that the State University supports development of the Kennedy Square Project; and be it further 

Resolved that the Chancellor, or designee, be, and hereby is, authorized to take actions necessary or appropriate to undertake the Kennedy Square Project.

Background

        SUNY Upstate Medical University wishes to attract student candidates for all academic levels and areas of study, to attract house staff and faculty members of the highest caliber and to make SUNY Upstate Medical University an employer and educator of choice in the competitive marketplace of medical and research institutions.  In support of this objective, Upstate Medical University has established a business plan to develop attractive housing and commercial facilities in the vicinity of its campus within a site known as Kennedy Square, now a part of the campus.
        
        SUNY Upstate Medical University has taken title to a 13.5 acre parcel of land in Syracuse referred to as Kennedy Square, which was once the site of a privately managed low-income housing complex (all tenants were relocated prior to transfer of title to Upstate).  

        Upstate, in partnership with SUNY ESF, has begun construction of an approximately 30,000 square foot Central NY Biotechnology Research Center (CNYBRC) on two acres.  The current plan is to allow development of eight or nine acres through a ground lease, through a request for proposal (RFP) process.  The community enthusiastically supports Upstate�s vision for the property.  The goal is simple � to restore a dormant, blighted property in a premier location of Syracuse, two blocks from the Upstate and ESF campuses, and turn it into a catalyst for renovation and job creation.  The restoration will incorporate a public/private partnership that will connect educational, research, residential and entrepreneurial interests into a cohesive and well planned urban development.  The plan also calls for sustainable design measures that promote environmental responsibility.  The successful bidder will be required to seek meaningful public input on an ongoing basis as the project moves forward.  In addition, the developer will make an annual payment to Upstate as part of the arrangement, in essence to create an endowment to meet the public mission of the campus.

        The vision, to be implemented through the RFP-based selection of a private developer, would include technology, research and development space to complement the CNYBRC and the Center of Excellence nearby.  As important, the private developer would create residential, recreational and retail space � in large part to help Upstate and ESF attract researchers and faculty to the CNYBRC and COE to further the University�s research mission.

        The RFP has been ready for release since October 2009.  However, the University has no statutory authority to allow for private development of public land.  To be clear, the project will not succeed without the public private partnership.  If the provisions of PHEEIA were in place, allowing the RFP to be released in a timely manner, the developer would already have been selected and construction would be underway by summer of 2010, creating much needed jobs and generating tax revenue for the State.  



Board Resolution	-3-	March 23, 2010