YOUNGSTOWN, Ohio – The owner of the Huntington Bank building downtown is seeking assistance from the city so it can complete an estimated $18.5 million redevelopment of the landmark structure.
Economic Development Director Stephanie Gilchrist told members of City Council’s Community Planning and Economic Development Committee on Monday that the developers are approximately $2.5 million short of funding to finish the project.
“The majority of funding is in place,” she said. “They are a little bit shy, but we are working to close that gap.”
Gilchrist said the department is in contact with its lending partners as to whether they could provide loans at a lower interest rate to support the redevelopment effort. One of the snags is that the project has qualified for $2 million in historic tax credits, but those credits aren’t redeemable until the entire project is finished and a certificate to occupy is issued.
Kyle Miasek, the city’s finance director, said the developer has asked whether the city had any way to directly help them in closing the gap.
One option, Miasek suggested, would be to tender a site development grant from the city’s business development fund to support the project. That grant, he clarified, would not be enough to close the entire funding gap but could be as much as $500,000.
“The question is, do we want to be using them for that particular project, or is there other projects in mind we would earmark those dollars for?” Miasek queried. “It is something we are willing to have a conversation with council to potentially provide a grant that would not be repaid.”
Miasek emphasized that the city would not release any funds for completion of the project until the developers had secured the balance of financing and the project was nearly completed. “It would give them these funds with the required commitments,” he said. “There would be milestones achieved before those funds are released.”
Nikki Fields, Mayor Jamael Tito Brown’s chief of staff, said the city is trying to exhaust all options before it makes any commitments toward the project. Although the project is not close to completion, the administration wanted to bring it to City Council’s attention early so Mayor-elect Derrick McDowell could be fully briefed before he takes office in January.
McDowell, who attended the CPED meeting Monday, defeated Brown in the mayoral election Nov. 4.
“We’ve been working on this for about two years now,” Fields said. She also added that the funding gap for the project has narrowed since the city became more engaged with the developer.
In December 2022, the building – constructed in 1911 by celebrated Detroit architect Albert Kahn – was sold to a New York-based investment group, 22 Market Street Ohio. In August of that year, the project’s architect presented plans before the city’s Design Review Board. At that time, the plan was to reserve the first four floors of the building for commercial space and convert the upper nine floors to residential units.
Huntington Bank has occupied newly renovated space on the building’s ground floor.
Most of the residential levels would have a studio apartment, three two-bedroom units and four one-bedroom spaces, Fields said at the meeting.
First Ward Councilman and Committee Chairman Julius Oliver said drawing more residents to downtown is vital to the city, especially in the aftermath of the Realty Tower explosion. “More residential space downtown is very important,” he said. “I would like you guys to continue working with this developer to see exactly what we can do, because we don’t want to lose two years of momentum.”
However, Oliver added that the city should explore all options and avenues before considering any direct grant toward the project.
Gilchrist said work on the first three floors is mostly finished, and the balance of work will be concentrated on the next seven floors. She estimates that the entire project could be completed between 12 and 18 months should the funding stack be secured.
20 Federal Place Proposal
Oliver also floated a proposal before committee members that advocated relocating some municipal and Mahoning County offices to 20 Federal Place, since the city has been unsuccessful in securing a developer to take control of the property.
“My proposal would be to make it part residential, part retail, and make the lower and middle floors administrative,” he said. Safety forces, as well as City Hall offices, could relocate to the ground floors, while Mahoning County could use building space for a new location for the Board of Elections.
Oliver said he would prefer to keep the Board of Elections and its employees within the city. Board Chairman David Betras has openly complained about the conditions at Oakhill Renaissance Place, where the elections board is now located.
“I’ve talked to some people at the county. They were not against it, but they’re not 100% for it,” he said.
Councilman Mike Ray, 3rd Ward, said relocating the police department, for example, is worth consideration. “It’s definitely worth a conversation,” he said.
Oliver added that the city could still own the building and have a development entity manage it. “It’s just an idea right now.”
In August, an effort to secure a developer and owner for the building fell through when the city and Bluelofts Inc. mutually ended discussions toward a potential deal after the city deemed the developer’s proposal too risky.
Also, the committee listened to representatives of a project that includes developing a new fuel, EV charging and food complex at the corner of Midlothian and Market streets. The city is contemplating introducing legislation to provide a site development grant of approximately $185,000 to offset infrastructure costs for underground stormwater retention improvements.
The city has also suggested spending another $75,000 to support a digital billboard at the location where businesses from all over Youngstown could advertise for a minimal cost.
The new site sits at the gateway between Youngstown and Boardman Township and would also need repairs to the sidewalks at the site. “That estimate is around $66,000,” Miasek said. This project, he noted, would be put out or bid.
The owners – who own a small gas and convenience store across the street – have already invested $1.8 million in the new site, Fields said. “They’ve been in business for over 20 years, and we want to make sure we support them and beautify that area of the South Side.”
Pictured at top: The Huntington Bank building in downtown Youngstown.