YOUNGSTOWN, Ohio – City Council moved forward with legislation Wednesday to amend its cooperative agreement with the Western Reserve Port Authority and to assist the redevelopment of the Mahoning National Bank building downtown.
The amendment to the agreement with WRPA, which the port authority’s board of directors approved in December, specifically identifies eight properties around the city for WRPA to market.
Those include the site of the ill-fated Chill Can project, the 20 Federal Place building downtown and the former South High Fieldhouse. Others include the Salt Springs South property, the former AT&T site, the former Republic Rubber property and land on Glenwood Avenue near Mill Creek Park and at Oak Street Extension.
Port authorities in Ohio, by statute, are able to negotiate directly with potential buyers for acquisition of properties rather than having to put property out for competitive bidding.
“WRPA has greater ability to sell and market the properties and engage directly with interested parties, something the city does not have the legal authority to do,” said Stephanie Gilchrist, Youngtown economic development director.
“We are grateful for City Council’s support approving the amended cooperative agreement,” said Nick Chretien, WRPA planning and regional development manager.
City Council members also approved executing a Community Reinvestment Area property tax abatement for 22 Market Street LLC, which purchased the Mahoning National building in December 2022, as well as items to provide funding for energy-related building improvements funded through the Youngstown Energy Special Improvement District to assist the $18.5 million project.
Plans outlined by a project architect use the building’s bottom four floors as commercial space. The ground floor already is occupied by Huntington National Bank. The remaining nine floors would be converted to apartments.
According to the legislation approved Wednesday, lenders would provide $5.5 million to the project owners that will be used specifically for a new heating, ventilation and air conditioning system; new efficient lighting; building envelope designs; efficient hot water system; and other related energy infrastructure improvements.
Mahoning County would then levy special assessments of $281,872.49 – including fees and interest – twice each year to the building owner over a 30-year period. The building owner would pay the installments to the county, then the county would pass the payments through the city of Youngstown. The city then would issue the payment to the lenders.
Total assessment costs over the 30-year period are calculated at $17,272,349.40. The first assessment payment is due approximately Jan. 1, 2027, and would continue semiannually until July 31, 2056.
The plan is similar to one approved more than two years ago to finance energy upgrades to the Stambaugh Building, which is occupied primarily by the DoubleTree by Hilton Youngstown Downtown.
The CRA tax abatement for the Mahoning building is 100% for 15 years.
The 22 Market project and the agreement with WRPA are about one thing – “continuing to move the needle on important economic development initiatives for the city,” Gilchrist said.