YOUNGSTOWN, Ohio – The city has filed a motion in Mahoning County Common Pleas Court requesting that the court delay an Illinois company from repossessing equipment from SOBE Thermal Energy Systems LLC – equipment the city argues is critical to providing heating and cooling services to 27 downtown buildings.
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 Power Equipment Co. 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 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 possession of the mobile unit.
However, the city seeks to intervene in the case and delay the company from acquiring the mobile system, since there are no alternative sources – as of now – to provide heating and cooling services to these downtown buildings, court documents say.
“Allowing Wabash to repossess the mobile steam plant at this time, therefore, abruptly would terminate heating, cooling, and hot water services for all of SOBE’s residential and commercial customers,” wrote Jason Small, the city’s senior assistant law director in its motion. Currently, SOBE provides these utility services to 27 downtown buildings and approximately 90 residential units, court documents say. “SOBE informed neither its customers or the city of the circumstances of this case.”
As such, the city is asking the court for a brief stay regarding Wabash’s repossession of the mobile unit, requesting another 30 days so the Public Utilities Commission of Ohio can arrange alternate means of providing utility services to downtown customers.
“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.”
A similar request to intervene was filed by the PUCO on Aug. 28, one week after the court issued its final order and closed the case, court documents note. On Sept. 8, the court denied PUCO’s motion to intervene.
SOBE has faced public backlash for its proposal to use recycled tire waste to produce synthetic gas to fuel its North Avenue plant.
Meanwhile, SOBE faces another lawsuit from Alcon Mechanical Piping Inc., Niles. That company alleges it has not been paid for work it completed for SOBE, which included the installation of piping in the Erie Terminal building.
Alcon filed its complaint July 19, seeking more than $424,458 in compensatory damages.