SYRACUSE, N.Y. — The owners of Destiny USA are filing a lawsuit against the city of Syracuse, arguing the assessed value of the mall’s property is overinflated and must be reduced.
The lawsuit was filed April 17 by Destiny USA Land Company LLC and its subsidiaries. It is asking for a review of its property tax assessments specifically related to parking areas at the mall, or other vacant industrial land associated with Destiny USA.
The city of Syracuse assessed the total land value at $32,768,500 for the 2026 tax year. Destiny argues that number should be much lower, totaling $4,255,257. The mall argues in the lawsuit a large portion of the land assessed consists of brownfield sites which cannot be developed without significant environmental remediation. The mall says the property has a lengthy environmental history, having stored oil and other waste on-site. As a result, the mall says these portions of land cannot be developed and should not be taxed at the same rate as the rest of the property.
The mall says in its lawsuit it was undergoing the process of contesting the city’s assessment, saying the true value was significantly less than the city’s assessed value. It says despite going through legal, ongoing Article 7 proceedings (to contest the assessment) the city listed its total value for the 2026 tax year at more than $32.7 million. The mall filed an appeal with the City of Syracuse Board of Assessment Review on or around January 30, and that appeal was denied. In April, the mall filed the lawsuit saying the city’s final assessment is “erroneous and unlawful by reason of overvaluation.”
The malls is asking the city to review and correct its 2026 assessment, reduce its total tax burden, and refund overpaid taxes with interest.
You can read the entire lawsuit here:
DestinyUsa v City of Syracuse – Assessment lawsuit – April 17 2026PDF preview
Syracuse city auditor Alexander Marion released the following statement:
“Once again Destiny USA is trying to fleece taxpayers. After receiving more than $700 million in public benefits, they are once again seeking to dodge tax payments in the form of lower assessments. Their argument that the value of these properties is lower because of environmental damage rings especially hollow after they have received millions of dollars in subsidies specifically for cleanup and so called “green” initiatives. The people of Syracuse need to stop propping up the cornerstone of Pyramid’s empire of failure.
“Lowering their assessments further erodes the tax base, giving fewer resources to deliver essential services or to support the school district with the highest child poverty rates in New York. This is more corporate welfare that’s only benefit is to grow the developers’ generational wealth at Syracuse’s expense.”
CNY Central has reached out to the City of Syracuse for comment and is awaiting an answer.
