YOUNGSTOWN, Ohio – City Council is expected to take up a tax break to assist the owners of Central Tower downtown during a meeting next month, support the developers argue could be critical to the project.
Representatives of FNB Youngstown LLC, a special purpose company formed to redevelop the downtown office tower for residential use, appeared before council’s community planning and economic development committee Tuesday afternoon.
FNB Youngstown principals were in town to meet with a potential funder to invest in the project, said Stephanie Gilchrist, city economic development director.
The limited liability company is asking the city to create a Community Reinvestment Area to assist what FNB Youngstown principal Marty Spitzer estimated would be a $10 million project. The CRA status would provide a tax abatement on any improvements made to the building.
“It’s still being used as an office building, but it’s fallen to well under 40% vacancy,” said Patrick Ciccone, a historic development consultant working with the LLC. “We believe that the future life of the building is in at least partial conversion to residential on the upper floors.”
The building could be eligible for CRA status for up to 15 years for the residential portion because of changes in state law, Gilchrist said.
New Jersey-based FNB Youngstown acquired the building in 2023. Once renovated, Central Tower will offer 14 floors of residential space, a mix of studio, one-bedroom and two-bedroom units. First National Bank of Pennsylvania, which has a branch and offices in the building, is expected to remain a tenant.
“We’re still internally trying to figure out what program of apartments versus some existing tenants make sense long term,” Ciccone said. “We think this project will be extremely catalytic in bringing other people to live downtown.”
The limited liability company acquired the building and has been working to obtain financing in addition to the state and federal historic preservation tax credits the project already has been awarded.
Under the guidelines for the $2 million state historic tax credit awarded last year, FNB Youngstown has until December to demonstrate that it has the financing in place or risks losing the tax credits, Ciccone said. The project also received a federal historic preservation tax credit based on the total value of the project.
“It’s a beautiful, beautiful building and it’s an important part of Youngstown’s history,” Ciccone said. The partnership also is interested in discussing any other potential assistance the city might offer for the project, he said.
The consultant also acknowledged the loss of Realty Tower last year, which was demolished after a natural gas explosion in May. The building had 23 apartment units, all of which were occupied.
“With the loss of Realty Tower, there’s a great need to replace the housing stock,” said Councilman Julius Oliver, 1st Ward, chairman of the CPED committee.
“The market is here,” he added. “More and more people can’t afford the property tax in the suburbs. More and more people don’t want to live in the big houses they raised their family in in the suburbs.”
The partnership’s members have been in discussions with entities including banks, the city and Lake to River Economic Development to fund the project, Gilchrist said.
Making the project work will be difficult without city support, Ciccone said. “There is skepticism in the lending community at large about housing downtown, period, which is one of the hurdles we’re trying to overcome and prove that it’s possible here,” he continued.
The renovation of the Huntington Bank Building, formerly known as the Mahoning Bank Building, has run into similar hurdles, said Nikki Posterli, the city’s director of community planning and economic development and chief of staff to Mayor Jamael Tito Brown. “Showing support for this would also garner more support for Huntington,” she said.
Downtown Youngstown is not only the city’s central business district but also a neighborhood, Oliver said. In addition to growth in downtown’s residential population in recent years, other major developments have taken place, such as the relocation of Steelite International’s global headquarters downtown and the recent announcement of a state innovation hub in the former Vindicator Printing Co. building.
Councilman Mike Ray, 4th Ward, was among the council members present who indicated their support for the project. “It’s a great idea,” he said.
Also during the meeting, council members heard an update from the Economic Action Group about the downtown recovery plan being developed following the Realty demolition. Nick Chretien, EAG executive director, said the group expects to have short-term plan recommendations by the end of March and the long-term strategic plan in July.
Activities taking place over the next few months leading up to the long-term plan’s release will include downtown stakeholder meetings, a peer city analysis and a vacancy survey, according to the plan update presented to the committee.