2014 Downtown Committee Annual Meeting Executive Director Report

Good afternoon! And thank you for coming to the annual meeting of the Downtown Committee of Syracuse.

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Now, how many of you experienced an alternate route, or encountered extra traffic due to construction on your way here? Some of you may see that as an inconvenience, but I see it as part of the unprecedented level of investment happening downtown.

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In fact, the Connective Corridor, running through the center of Downtown Syracuse, is the largest downtown public project in 30 years! This project, and the incredible partnership between Syracuse University,

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the City of Syracuse and Onondaga County, has been recognized nationally, putting Syracuse on the map as a community to be watched.

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While we’re all experiencing these growing pains, the good news is our community’s growing.

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Ten years ago, we were excited about $160 million of investment underway…

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Today, we’re seeing more than $353 million in development activity! A direct result of our community’s imagination. Our ability to look at something…..a building, a product….and then identify how it can be made better, is why Downtown Syracuse buzzes with progress. On my way in this morning, my two young sons and I counted:

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1 crane

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2 concrete mixers

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5 skid steers

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12 backhoes

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2 scissor lifts

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7 boom lifts

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4 steamrollers

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And, 13 dump trucks. My sons are also excited by the progress. Or, at least the big trucks!

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Together we’ve re-imagined downtown. And it’s people with an eye to the future that drive this change. I’d like to take a moment and acknowledge the partners who have helped make this progress happen.

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First, Chairman Breuer for his years of service to the Downtown Committee. If you’ve ever attended one of our Board meetings, you’ve witnessed first-hand his vision and passion for our city.

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A similar passion is found in each of our Board members, and I’d like to thank you for your support and guidance. Each of you brings a diverse perspective that advances our downtown programs.

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I’d like to thank our incredible team at the Downtown Committee of Syracuse. Each of you pour your heart and talents into making downtown the best place it can be. I’m truly grateful to work alongside each one of you.

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I’d like to recognize Mayor Miner and her visionary team at City Hall. Her aggressive approach to addressing delinquent properties,

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like the Hotel Syracuse, ensures that these landmarks will be put back to productive use.

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Since she’s been in office, over 300 properties have been transferred to the Greater Syracuse Land bank.

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Meaning the city will realize $4.9 million in delinquent taxes, and these properties are now positioned to transform our neighborhood fabric.

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Our County Executive Joanie Mahoney is also a dedicated partner in this effort.

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She continues to demonstrate her belief in the value of a strong urban core, and has invested $128 million in Save the Rain projects, changing our downtown landscape.

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Partnerships, like ours with the Mayor, Common Council, and the County Executive are why we’ve been able to seize the opportunities that have presented themselves this year.

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Creating a livable community is key to our revitalization. And one of our strongest assets is our culture.

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With more than 35 cultural institutions found in our urban core, Syracuse is unmatched in its offerings.

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In a 5 minute walk from any downtown hotel or office building, you can: Explore the only remaining Weigh Lock Building at the Erie Canal Museum;

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Venture through the Discovery Cave at the MOST;

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Marvel at the dresses of the roaring 20’s at the Onondaga Historical Association;

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Join a sold out crowd at the Civic Center to hear John Legend; or,

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Find your inner novelist at the Downtown Writer’s Center

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We have so much out our front door.

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And now more than ever, we recognize our potential. And reimagine downtown as the vibrant center it is.

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Just last week, the Syracuse Media Group ran an editorial – “Crowds, Traffic in Downtown Syracuse Signal a Place Where People Want to Be.” We couldn’t agree more.

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And they ran a poll: Is Syracuse on an upswing? A resounding YES.

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“Outside of work, will you come to downtown Syracuse this summer? 217 said YES.

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Culture is one of the amenities that draws residents downtown.

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Downtown’s one of the fastest growing neighborhoods in Onondaga County. As fast as developers can build apartments they’re being leased.

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This was evidenced by one of our most successful downtown living tours this past May.

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Even in buildings where construction was just starting,

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we heard comments like – ‘when can we put down our deposit?’.

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People are looking at downtown with fresh eyes, seeing what was, and re-imagining what it can be.

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Currently there’s $140 Million in residential development happening downtown.

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It was just 2 years ago that Merchants Commons looked like this.

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Today, thanks to the vision of Joe Hucko, it’s alive with 90 residents, the Syracuse Media Group,

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and probably downtown’s largest dog population!

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Three years ago, this was the corner of Salina and Fayette Streets.

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A true community effort, Pike Block has involved the support of many.

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From volunteer cleanouts dating back to 2006,

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to the ceremonious project launch in 2012, the Pike Block has been a heavy, but important, lift for our community.

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Thanks to the early vision of Assemblyman Magnarelli whose support got this project off the ground,

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and Senator Valesky who pushed it over the finish line,

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today, the $29 million project is

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the anchor of redevelopment in the heart of Downtown Syracuse.

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And our new company headquarters.

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Construction’s underway in every direction you look.

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Next door to City Hall, developer Jim Prioletti is nearing completion on the $1.7 million transformation

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of the Courier Building into nine spacious apartments.

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On the 500 block of South Salina Street, the historic Chimes building is undergoing a $1.5 million renovation, adding 31 apartments and condominiums.

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An urban renaissance is underway on the 400 Block of South Warren Street.

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Once a symbol of decline, it’s now a symbol of a burgeoning neighborhood.

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Earlier this year, the Downtown Committee successfully listed these buildings on the State and National Register of Historic Places.

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Reimagining what this block can be, developers are breathing new life into these historic buildings.

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At 443 South Warren Street, Tom Cerio is underway with a $756,000 renovation, adding two spacious apartments.

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Projects like these have resulted in an 11% increase in our residential population this last year alone.

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And we’re not done. Next year we expect 186 new apartments downtown.

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Looking ahead, eight apartments will be constructed in the former WFBL Buildings. Tom Cerio’s $3.4 million renovation will maintain the terra cotta art deco façade that speaks to this building’s unique character.

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And we have a new generation of developers reimagining what can be:

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At 201 East Jefferson Street, developer Troy Evans will start a $1.6 million conversion

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geared towards the burgeoning entrepreneurs of our region.

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Icon Companies has presented plans for Icon Tower - a $19 million conversion of the former Excellus Building into mixed-uses.

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The influx of residents will dramatically change the feel of Warren Street.

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It’ll also activate Bank Street, where the City, County and National Grid have invested $1 million to lay the foundation for transformational projects like this to happen.

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On South Salina Street, Ryan Goodfellow has announced a multi-million dollar conversion of a long vacant eyesore. This will transform downtown’s southern gateway with commercial space and 12 new apartments.

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On Clinton Square, developer Dan Queri has announced plans to expand the Amos Building to offer 16 additional apartments.

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Longtime business owner Max Chutinthranand has purchased one of the last vacant buildings in Armory Square. Soon a $3.9 million transformation of Jefferson Street will begin, with the addition of 21 loft apartments.

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And, at 235 East Water Street, Troy Evans and Josh Werbeck will add 3 apartments, expanding upon the established Hanover Square residential neighborhood.

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Vacant buildings are being reimagined as apartments,

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offices and new retail spaces.

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Growing markets provide the opportunity to re-imagine old office buildings,

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like the $17 million Creekwalk Commons project underway at the former EM O’Donnell Building.

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Here, developer Jim Breuer has added a floor to the building

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and created a downtown home for students who crave the urban lifestyle.

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The energy that residents have brought to Hanover Square and Armory Square

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is now spreading to parts of downtown that never would’ve been considered residential destinations 3 years ago.

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In total, we’re slated to welcome 340 new residents downtown in 2014.

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New residents = new commitment downtown. And our community is invested in ensuring that downtown thrives.

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Downtown’s one of the safest neighborhoods in the City, and we’re taking a proactive approach to ensure it stays that way.

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This summer, thanks to support from Assemblyman Magnarelli, the Downtown Committee will install a security camera program.

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Further evidence of downtown’s livability is the 18 new retail businesses that’ve opened in the last year.

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Now, when Kevin Tampone writes about retail openings in downtown, we excitedly see him use the word “Another.” Signals of strength in the downtown market are evidenced by business owners seizing opportunities to introduce new ventures downtown.

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Business owners like Kathie Morris and Michele Graham moved their successful retail businesses – The Changing Room and A La Maison - from Baldwinsville into the downtown center, further diversifying downtown’s unique product mix.

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In the past two weeks, Accents of Armory Square,

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Indie Kids,

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Etcetera,

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and Blown Away have opened their doors.

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The diversity of these and other new businesses signals an exciting new chapter in downtown’s retail transformation.

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Downtown’s vitality is attracting employers too.

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They recognize the power of a downtown presence in their company brand.

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These companies want a place where their employees can experience

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the history, the culture, the cafés…the places that provide a connection.

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Companies like Metro Fitness provide experiences that increase downtown’s livability.

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Their hugely successful “Zumba in the Square” and soon to be introduced “Sunrise Yoga” classes are just two examples of amenities embraced by our downtown community.

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And companies like Dannible & McKee, headquartered on South Warren Street, are early adopters who embraced downtown. Symbolizing commitment for 36 years and counting.

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This year we’ve welcomed 15 new companies downtown. Another 17 companies expanded their presence.

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Entrepreneurs thrive in dense downtowns, and Downtown Syracuse is no exception.

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This spring the Tech Garden expanded with 18,000 square feet

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of new space at AXA Towers with Tech Garden II.

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Now, companies are provided 51,000 square feet to focus on developing our next great product.

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Shopping, culture, housing and jobs create a reason for people to be downtown.

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And people create a dense Downtown Syracuse. Density brings incredible returns for our community.

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This past fall, the Downtown Committee was awarded its fifth $200,000 NY Main Street grant.

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To date we’ve funded 34 buildings, leveraging

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$43 million in support of developers

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who’ve re-imagined vacant spaces into community assets.

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Density in a neighborhood drives value – both in financial returns and the ability to grow ideas into businesses.

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We know that Downtown is an economic, cultural and social asset. And, we know intuitively that a strong City center is good for the rest of the region.

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This past year we took a closer look at the value of Downtown Syracuse and what it returns to the community.

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On a value per acre basis, Downtown Syracuse knocks it out of the park. In terms of the City’s total land area, Downtown Syracuse makes up 2% of the taxable land, yet it produces 10% of the City’s tax revenue.

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Downtown is also part of the County, so it pays Onondaga County property taxes. On a county-wide basis, Downtown consumes one-tenth of one percent of the land area, yet it produces 1% of the property taxes. This is a ten times ratio of potency….

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Or, another way to think about it: One employee doing the work of 10 people, from a tax productivity standpoint.

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Data like this is instrumental to demonstrating why downtown matters to all of us. And as stakeholders of downtown, we need to ensure downtown’s value is communicated.

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There’s no more critical game-changer ahead of us than the opportunities presented with a re-imagined Interstate 81.

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Studying this data confirms what we knew already -- What’s good for downtown is great for the region.

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Downtown and University Hill produce the most property taxes per acre in the County. And this most valuable real estate is severed by a highway. We must reimagine the future Interstate 81.

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If we don’t use our imagination, we’ll be stuck with a highway that: Severs our neighborhoods.

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Isn’t safe! – The downtown accident rate is 5 times the statewide average.

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Doesn’t serve our commuters well because of incomplete connections, dangerous lane changes, and frequent rush-hour backups.

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And, depletes the value of much of the land adjacent to the highway because its current configuration doesn’t foster economic growth. We need to do better. We can do better.

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Downtown Syracuse deserves a solution that re-imagines this urban center as the vibrant core we know it can be.

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When I imagine Downtown Syracuse 50 years from now, I see: • A growing, high-energy community.

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With connectivity between our unique neighborhoods.

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A place where residents are walking and enjoying urban spaces.

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And, renewed green spaces.

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Public art that engages our community.

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There’s not one vacant building or underutilized lot left.

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And, retail is so successful we’ve started to build it on second stories.

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And when we look back, we should be able to say we made this happen because we chose not to rely on a one-road solution for the future of Interstate 81. We looked to a comprehensive transportation system that focused on more than just cars.

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And we chose an alternative that unleashes downtown’s potential.

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I want us all to look ahead to the future. And not limit our minds to the way things have been. Or are today.

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Now is the time to use our creativity to build an even stronger urban core.

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We need your vision if we want downtown to be reborn, repurposed and reimagined. Today I’m asking you to keep this momentum going.

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When you walk out of here today, past a vacant storefront, empty building, or an underutilized space: • Stop and take a picture. • Tell us what you want to see. • What the future could be for that space.

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And use the hashtag #ReimagineDowntown to share your vision.

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Help us re-imagine Downtown Syracuse as its most vibrant self.

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THANK YOU.

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