Hotel Incentives on Board of Control Agenda
YOUNGSTOWN, Ohio – The city’s Board of Control today will consider incentives to grant NYO Property Group, the developer of the Stambaugh Building hotel under construction.
The incentives, as outlined on the board’s agenda for this morning’s meeting, include a 10-year, 75% abatement of real property taxes; a term loan of up to $700,000 for 120 months; and a $2.05 million bridge loan for 30 months.
City Council approved the incentives last year for NYO’s conversion of the Stambaugh Building into a DoubleTree by Hilton hotel.
The bridge loan would be secured by federal and state historic preservation tax credits NYO received for the project.
In addition, the agreement, as approved by City Council, calls for $750,000 of the bridge loan to be forgiven if certain conditions are met.
The term loan is being offered no interest for the first three year and at 6.5% the remaining seven.
“There’s a lot of demand for a hotel that can service a lot of different things that are happening,” Mayor John McNally, chairman of the board of control, said yesterday.
That demand is from entities that include Youngstown State University, the downtown business community, Youngstown Business Incubator, courts in the downtown and Vallourec. In addition, families are looking to having a downtown hotel so they no longer have to use a shuttle to hotels in surrounding areas, he added.
The project will involve total investment of $25.72 million and is expected to create 25 jobs in its first 18 months.
Copyright 2023 The Business Journal, Youngstown, Ohio.