YOUNGSTOWN, Ohio – The city has reached an agreement with Wabash Power Equipment that temporarily allows a mobile steam plant stationed at SOBE Thermal Energy Systems to continue providing heating and cooling services to downtown customers.
“We have reached an agreement with Wabash to keep the trailer on site and operational through Sept. 30,” a spokesman for the city said Tuesday. “In the meantime, we continue to work with potential partners to find a long-term solution as quickly as possible.”
Last week, the city filed a motion in Mahoning County Common Pleas Court requesting that the court delay Wabash from repossessing equipment that SOBE Thermal was using to supply customers with steam heat.
SOBE, based in Dublin, Ohio, operates a district heating and cooling plant on North Avenue and agreed in 2019 to lease a mobile steam unit from Wabash so it could serve customers while the plant converted its systems to synthetic gas produced from tire chips. However, SOBE failed to make rental payments under the lease agreement, court documents say.
According to court papers, an Illinois federal court in January awarded Chicago area-based Wabash a default judgment totaling $383,214 against SOBE for breach of contract. Wabash then filed a motion in Mahoning County in May requesting that the court issue an order allowing repossession of the equipment.
On Aug. 21, Judge Anthony Donofrio issued a default judgment in favor of Wabash, allowing it to take immediate possession of the mobile unit.
A ruling yesterday allows SOBE to continue operating the mobile unit until 8 a.m. Sept. 30, according to court filings. Wabash would then be free to reclaim the mobile plant. The city in turn would pay Wabash $20,000 for continuing service downtown.
The city sought to delay the company from repossessing the mobile system for 30 days, since there are no alternative sources – as of now – to provide heating and cooling services to these downtown buildings, court documents say.
Currently, SOBE provides these utility services to 27 downtown buildings and approximately 90 residential units in the central business district.
“The city does not oppose Wabash’s ultimate effort to be made whole,” the city’s motion stated. “Repossession of the mobile steam unit at this time, however, creates an untenable circumstance for residents and businesses in downtown Youngstown.”