YOUNGSTOWN Investment group bids on YOH property

THE VINDICATOR, YOUNGSTOWN
If its bid is successful, the investor group will convert the vacant hospital into office space for lease.
By CYNTHIA VINARSKY
VINDICATOR BUSINESS WRITER
YOUNGSTOWN -- A new prospective buyer has emerged to bid on the former Youngstown Osteopathic Hospital, but its offer is a fraction of what another prospect bid on the vacant building just five months ago.
An investment group calling itself CMD Realty Group LLC is offering $150,000 for the Youngstown landmark. Mahoning County Chemical Dependency Program offered $700,000 for the facility in May, then withdrew the offer.
The YOH estate was originally asking $1.5 million for the property, which includes two main buildings and three houses on 8.5 acres, the equivalent of 22 city lots.
Court records do not identify the CMD investors, and Bill Kutlick of Kutlick-Platz Realty said they prefer not to be named at this time. Kutlick-Platz, a Boardman commercial real estate firm, is handling the sale.
"They are local people who care about the North Side of Youngstown and have faith in the North Side of Youngstown," he said, adding that MCCDP is not involved. "These are people who have the financial wherewithal to operate a building like this."
Want to move ahead: Kutlick said YOH owners are not disappointed that the new bid is so far below the original asking price. The building has been vacant since spring 2000, and maintenance costs are a burden. "Basically, I think they're just happy to close out the bankruptcy and move on," he said.
If a competitive bid or bids are offered, an auction will be at 9 a.m. Nov. 2 in U.S. Bankruptcy Court in Youngstown.
Competing bidders must offer at least $20,000 more than the CMD Realty Group bid and must meet other criteria established by the court. Bids must be submitted by 5 p.m. Nov. 1.
Plans for building: If their bid is successful, CMD investors plan to renovate the building and lease it out to public service agencies and other tenants, Kutlick said.
"They plan to put some money into this, to renovate it and put together a marketing plan," he said. "There's still some useful life left in that building, and these people want to keep it from being boarded up."
There's plenty of local precedent for the plan. The former St. Joseph Riverside Hospital in Warren and the former Forum Health Southside Medical Center in Youngstown were both renovated and successfully converted into business and office space.
MCCDP had a similar plan, but an agency official said it withdrew the bid when businesses that had originally expressed an interest in the space were ultimately unwilling or unable to commit to a move.
Bankruptcy: YOH filed for Chapter 11 bankruptcy protection in May 1999, but continued to operate while officials tried to reorganize its debts. It closed permanently in March 2000, citing declining admissions, dropping outpatient revenue and the inability to reach a settlement with striking workers, members of Teamsters Local 377. The closing left about 280 employees jobless.
Located on Broadway between Elm Street and Wick Avenue, the property includes a cafeteria, medical library, small auditorium, skylighted foyer and lighted parking for 500 vehicles. Most of the hospital's furnishings and medical equipment were liquidated in a sale that raised $600,000.
vinarsky@vindy.com