New owners hope remodeled B & amp;O becomes a favorite stop

The mayor insisted on a deal featuring no city money and guaranteed investments.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The black circular stairway that replaces the old steps is new.
The replastered and repainted walls are new. The U-shaped, copper-topped bar is new. The big brewing tanks most certainly are new.
City leaders hope all that means a new start for the venerable B & amp;O station downtown.
The B & amp;O opens this evening as a microbrewery and restaurant.
Robert Arroyo and Joe Pedaline say they've invested more than $300,000 the past couple months into the city-owned rail station, vintage 1906.
They expect the renovations, the uniqueness of an in-house microbrewery and a focus on fast service will make the venture a success.
The brew master has a college education in the craft, the head chef is from a major Las Vegas hotel, and the managers are experienced, Pedaline said. The menu features a moderately priced mix of items such as sandwiches and salads.
"What we're after is good food, good service and good beer," Pedaline said. "I think we've put a team together that will surprise people."
Customers from the old B & amp;O -- the last of whom were there nearly six years ago -- will notice many changes, from the fresh paint outside to the restored original terra cotta floors inside.
The old stairway in the middle of the station interrupted the room and was replaced. Installing the brewing equipment meant changing the bar, which now is a U-shape that juts into the room. The bar's copper top matches the brewing tanks.
Booth and table seating, upstairs and down, totals about 200.
Upstairs, the balcony was extended over the brewing room as a stage for musicians. The banquet hall, to seat 100 people, has been redone with stucco and hardwood floors.
Outside, the patio has been improved.
"They'll know how much change has been done here," Arroyo said.
Mayor's tour
Mayor George M. McKelvey, who toured the building earlier this week, concurs. Customers will be struck by how good the building looks, he said.
"They will instantly be impressed," McKelvey said.
McKelvey called the reopening of the B & amp;O a testimony to the persistence of his administration.
It took him and his development office four years to land a tenant that could get the building open.
From the start, McKelvey insisted on a deal that featured no city money and guaranteed investment by the private developers.
Two different developers had leases over the years, but they failed to make the required investments, so the city kept looking.
"It truly is satisfying after so many years of frustration ... to actually see it come to life," McKelvey said. "We never gave up. We knew it would be a fit for somebody."
Recent history dates to 1991, when the city spent $2 million on a restoration. The city also gave National Restaurant Development Corp. of Washington, D.C., $1.2 million in loans. The company, however, went bankrupt and closed the restaurant in November 1996.
Unexpected partnership
Neither Arroyo nor Pedaline, who are partners in several businesses, expected to be partners in a brew pub and restaurant. Indeed, neither did the city.
A year ago, the city struck a deal with businessman Bill Marsteller. He was to lease the building and work with former state representatives and brothers Michael G. and Christopher Verich, owners of Ohio Brewing Co. in Niles.
But Marsteller couldn't move ahead and backed away from the project in November, said Jeffrey L. Chagnot, city development director. Eventually, Arroyo and Pedaline -- who were hired to renovate the building -- became partners in the venture with the Verichs.
Despite the change, the partnership has met the city's investment-based deal.
The partnership put up $200,000 in cash it would forfeit to the city if that level of investment wasn't made into the building. That investment goal has been exceeded, Chagnot said.
Under the deal, the owners now can buy the building outright for $50,000, he said.
Even if the sale isn't made and the venture fails, the city eventually gets back the renovated building. If the B & amp;O succeeds, the city has unloaded a liability and gains tax revenue that the operation generates, McKelvey said.
The owners start with no debt except the renovations, so they have a good chance to succeed, Chagnot said.
"I'm real pleased with what they've done," Chagnot said. "We're hopeful for their success."
So are the owners.
"We're going to make it. We don't have a choice," Pedaline said. "We're going to please the customers."
rgsmith@vindy.com