DOWNTOWN Group tries again for district

Supporters say a state-designated district downtown will spur development.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The group seeking to create a state-designated entertainment district downtown has refiled its application to the city.
Mayor George M. McKelvey said the group needs sufficient support among those with an interest downtown before he recommends approval to city council.
Council turned down a similar application filed late last year. The mayor recommended rejection because there wasn't enough time to explore the issue fully.
By law, council has 75 days to approve or reject the request from the owner of Cedar's Cafe. David Simon, whose mother owns Cedar's, and some others downtown recently formed the Youngstown Arts and Entertainment District Association.
Seeking input
McKelvey said he first wants to hear what downtown business people say about the idea, particularly liquor license holders. Such districts are established through the state liquor law.
Endorsing a move that could affect liquor licenses without input from those who hold them would be unfair, the mayor said.
"They are the stake holders," he said.
The association needs to explore and bring forward whatever support is out there, McKelvey said. The mayor said he will support the move if most of those stake holders agree. He will recommend against it if they don't.
The city only knows where two of more than a dozen liquor license owners stand on the issue. Cedar's supports it; the Downtown Draught House doesn't.
A lawyer for Draught House owner Wayne Cornelius advised his client that an entertainment district creates several risks. A main factor cited is the additional liquor licenses available to such a district.
New bars and restaurants with liquor licenses could create intense competition with establishments for a limited customer base if the district fails to draw people downtown, said attorney Patrick Gaughan.
New licenses
The state would make available 15 new liquor licenses in the district and sell them for $1,875. Buyers often pay $20,000 for permits on the open market.
State law requires a population of more than 100,000 to qualify for an entertainment district. A bill before the Ohio House, however, would lower that to 20,000, and Youngstown would qualify.
Supporters say a state-recognized designation will bring grants and other funding. Such funding will create more activity and development downtown, they say.
The group, which has been at odds with the mayor, is trying to work with the city to improve downtown, said attorney Jeff Kurz, an association board member.
"It's not an adversarial thing. We think it's in the best interests of the city," he said.
rgsmith@vindy.com