YOUNGSTOWN A new agency for the arena?

The boundaries are flexible and might be narrowed to only the project site.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city wants to create and control a second community improvement corporation downtown focused on the civic center project.
The proposal left members of downtown's redevelopment agency, the Youngstown Central Area Community Improvement Corp., wondering Tuesday what's wrong with them.
Nothing, said Mayor George M. McKelvey. The city is just following the advice of its project consultants and lawyers, he said.
Consultants say a new such agency is necessary for the project, he said. McKelvey likened the new agency to the Gateway Development Corp. in Cleveland. That group was used to build Gund Arena and Jacobs Field.
The new community improvement corporation would handle issues such as tax-free financing for the project.
McKelvey said the proposal shouldn't be controversial or adversarial. The new agency would be centered only on the proposed arena and hotel-conference center project, he said.
CIC property committee members questioned if the city wants the new agency because it doesn't trust them to be involved.
"That's not even an issue," McKelvey said.
Advantages
Law Director John McNally IV, who pitched the concept, said the new agency would protect the existing CIC from any liability.
The new agency would have a small number of city officials only, he said. None would be from the private sector, as CIC has. McKelvey wants the city to have sole responsibility for the project's success or failure, McNally said.
He acknowledged that a city-controlled community improvement corporation would avoid an arena board-type debacle.
City council set up an arena board to oversee the project. Five other groups besides the mayor and council made appointments to the 11-member board. Relations became strained between the city and some board members, however. Council eventually dissolved the board.
Boundaries
A new improvement corporation would need the existing CIC to amend its boundaries, which encompass the entire downtown.
McNally proposed boundaries for the new agency that far exceed the site between the Market Street and South Avenue bridges. His proposal set the new agency's boundaries from Boardman Street to the Mahoning River between South Avenue and Vindicator Square.
CIC members questioned why a new agency would cover so much more than just the project site.
McNally said businesses under the new agency might be eligible for tax breaks. He wasn't sure, however, if there were any tax advantages.
Also, the city wants to include the former Wean United site under the new agency. That property, along the river west of Market Street, could become part of the project in the future, he said.
McKelvey and McNally both said the boundaries were flexible and could be narrowed to just the project site.
The property committee said it wanted the full CIC board to hear from McKelvey next week.
rgsmith@vindy.com