CIC to Explore Credit Line for Building Upgrades
YOUNGSTOWN, Ohio – The Youngstown Central Area Community Improvement Corp. will explore securing a bank line of credit following the completion of its current state audit.
Tom Humphries, president of the CIC under its management contract with the Youngstown Warren Regional Chamber, told members of the CIC’s board of directors that the CIC’s management team had discussed the possibility of securing a bank line of credit.
“We don’t need it now, but we thought it would be appropriate for the unknown. I didn’t know what the unknown is,” Humphries, who also is president and CEO of the Regional Chamber, said. “We think it’s healthy to have it sitting there.”
The line of credit would be used to address situations at the George V. Voinovich Government Center or the parking lots the CIC owns – replacement of the heating and cooling system, for example – rather than relying on the CIC’s cash reserves to make any needed repairs.
The CIC will propose a $100,000 line of credit to prospective lenders as a starting point to determine what interest rate and fee it would have, and go up from there, Humphries said.
A letter of credit in the range of $50,000 “is not going to get anybody’s attention,” G. Richard Pavlock, CIC chairman and retired senior vice president at the former First Place Bank, said.
Bruce Luntz, financial officer for the CIC, said the audit should be back by mid-February.
Dave Kosec, building manager for the chamber, reported that Strollo Architects, which redeveloped the Wells Building downtown, is in the exploratory phase of doing something with the adjacent Armed Forces building site.
“We’re open to anybody,” Kosec said. “We’ve had other people come but being that they’re next door, they’re taking a harder look at it because they think it may be something that compliments them.”
The redevelopment of the Wells Building and Faniro Architects’ redevelopment of the Davis Building down the block have made the sites in between more attractive for projects, he said. “Anybody could make it parking. We’re trying not to, being that’s the last Federal Street property” that the CIC has for redevelopment, he said.
Kosec also reported that the CIC was able to secure a new, lower electric rate for its properties from IGS Energy. Beginning in March, the CIC will pay 4.8 cents per kilowatt hour, compared with the current 6.5-cent rate. The term of the contract is for 58 months, which will bring it to the end of calendar year 2022.
Copyright 2020 The Business Journal, Youngstown, Ohio.