Council to Vote on Energy District for Hotel
YOUNGSTOWN, Ohio – City Council will consider at its meeting Wednesday night legislation to establish an energy special improvement district downtown to assist with the redevelopment of the Stambaugh Building into a hotel.
A special assessment to fund $3 million energy efficiency improvements to the building would be permitted under the legislation. Last month, the Western Reserve Port Authority voted to issue property-assessed clean energy – or PACE – bonds and enter into a capital lease structure with NYO Property Group for the project.
The port authority is issuing the bonds in partnership with the Development Finance Authority of Summit County.
The aggregate amount of special assessments estimated to pay the costs of the project is $5.5 million, according to the legislation. The special assessments would be levied and paid in 28 semi-annual installments.
“It allows a potential alternative financing mechanism for the building developer,” city Finance Director David Bozanich said. Creating the district does not carry any financial liability for the city, he said.
Dominic Marchionda, NYO managing partner, did not respond to a request for comment.
NYO announced plans in November 2014 to convert the building, at 44 Federal Plaza East, into a DoubleTree by Hilton hotel. The project is expected to cost in excess of $30 million.
Pictured: Rendering of the hotel’s upper floors.
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