YOUNGSTOWN, Ohio – The city formally entered into a partnership Thursday morning with a Dallas-based developer to help redevelop the 20 Federal Place building and an adjacent parking lot on West Champion Street.

Members of the city’s Board of Control voted to enter into a nonbinding memorandum of understanding with Bluelofts Inc., the sole respondent to the city’s request for proposals for the city-owned property. The plan submitted to the city calls for a $57 million redevelopment project that includes 100 student, multifamily and penthouse units, ground-floor retail, e-commerce and mini-warehouse space, medical suites and a wellness hub. 

Approval of the MOU is “a big step for downtown Youngstown and the city,” said Doug Rasmussen, CEO and managing partner of Steadfast City Economic & Community Partners. The St. Louis-based consulting firm has been working with the city since 2020 on the project.

“It’s an important step to advance a very important project and a very important building at a time when we can take advantage of the historic tax credits and other aspects of the project that have already been completed,” he added.

According to the MOU, the city and Bluelofts will enter into an exclusive project due diligence period that will run through Oct. 15, 2025. The project will use a P3 ownership model, in which an Ohio limited liability corporation will serve as the owner of the project.

“Once completed, Madrone will become the responsible party to maintain the project and its intended development plan and design under the vision shaped, developed and potentially co-managed by Bluelofts, with input from the city’s residents and community stakeholders,” the MOU further stated.

Madrone Community Development Foundation, a California-based nonprofit benefit corporation, will be the sole member of the LLC and work with the city and Bluelofts “to engage in due diligence that will ultimately culminate in the execution of a ground lease between the city and Madrone,” the document continued.

Expected activities during the engagement period will include initiating market demand studies for the project; executing a construction contract or general contractor agreement; executing an architect agreement; marketing bonds and closing a bond issue; and obtaining city approval on a ground lease, affiliation agreement and final sign-off on bond structure. 

Mayor Jamael Tito Brown, board of control chairman, said city officials are looking forward to redeveloping the property. 

“It’s a lot of some unknowns, but we think it’s a great opportunity for the building,” he said following the meeting. “Anytime we get a chance to develop a building downtown as large as that and as significant as that, I think that’s moving in the right direction.”

Other Business

In other business during the meeting, the board approved entering into a $1.5 million agreement with Strollo Architects, Youngstown, to provide architectural design services for the proposed city safety campus, and awarding a $1.03 million contract to Brock & Associates to rehabilitate 2649 Glenwood Ave. using American Rescue Plan funds. The city announced plans earlier this year to redevelop the former Bottom Dollar Food building as a community hub.

Helping identify a possible site for the safety campus “will be part of the process,” said Charles Shasho, deputy director of public works.

Additionally, the board approved entering an MOU for property acquisition and improvements with the Western Reserve Port Authority not to exceed $240,000 for the former McGuffey Plaza property on Garland Avenue on the East Side. The port authority acquired the property in 2022, and last year city officials pledged funds to assist with redevelopment of the site.  

The $240,000 is to reimburse the port authority for work it already has had done on the property, but other work remains, according to Anthony Trevena, WRPA executive director.

“So we’re grateful for that partnership [with the city] and look forward to getting that property prepared to be marketable,” he said.

“We’re looking at 2025 construction season to fully clean it up,” said Nick Chretien, WRPA’s planning and regional redevelopment manager. “We’re not sure what it’s going to be at this point, but we want to keep our options open, and it’s being cleaned up accordingly.”