Why the double standard in developing arena site? Equal treatment required



Something stinks in the land deal for the proposed convocation/community center -- commonly referred to as the sports arena project -- in downtown Youngstown, and it isn't the Mahoning River.
How can Youngstown justify paying the owners of the property between the Market Street and South Avenue bridges the $1.5 million they demanded when it now wants to use the power of eminent domain to grab private property along the site's northern boundary? It can't.
The manner in which Youngstown City Council and the administration of Mayor George M. McKelvey bought the former steel mill location from RSA Corporation remains a mystery. Earlier this year, McKelvey contended that city council through ordinance authorized the board of control to negotiate the purchase of the land. The mayor and finance and law directors make up the board of control.
McKelvey also said the purchase price had been established by the owners and that was what the council had decided to pay.
However, Councilman James A. Fortune Sr., chairman of council's finance committee, denied that lawmakers had been involved in any negotiations with the president of RSA Corp., Elias Alexander, and his brother, Dr. Theodore, or their representatives. Fortune insisted that it is only the board of control that negotiates and enters into agreements.
Established procedure
The refusal of anyone in city hall to take responsibility for striking the deal is noteworthy because the city's established procedure for buying property was not followed. Normally, the city and the property owner would each hire an appraiser and the two appraisers would then agree to a third. The average of the three appraisals would represent the purchase price.
The city has also used eminent domain to take possession of private property. Eminent domain allows government to condemn and seize property, with the owner being paid a price usually established by the courts.
But Youngstown chose not to take the property between the bridges by eminent domain -- even though it is included in a redevelopment plan and study that says the majority of the land bounded by Front Street, the Mahoning River and the South Avenue and Marshall Street bridges is blighted. The plan and study were adopted recently by the Youngstown Planning Commission. If city council goes along, the city could use eminent domain to grab the property along Front Street.
One of the owners, architect Ray Jaminet, a member of the planning commission, called the plan bogus. He abstained from voting on the two items.
McKelvey, city Law Director John McNally IV, Carmen Conglose Jr., deputy director of public works, and Denise Warren voted yes. Wallace Dunne and Deborah Mathews opposed the adoption of the plan and the study.
Lawyers representing various property owners raised objections to the planning commission's move; a lawsuit was threatened if council follows the commission's lead.
The lack of a financial plan was troubling to Dunne, but McNally noted that the city has $25 million in a federal grant for the development of the convocation/community center and thus a financial plan is not a big deal. The law director said one could be produced if council requested it.
The $1.5 million that the city paid to the Alexander brothers, plus $300,000 in related costs, came out of the federal grant. Former Congressman James A. Traficant Jr. had secured the $26.8 million for the project, but had envisioned its being located on the West End of downtown Youngstown in the vicinity of Youngstown State University.
Public-private partnership
Traficant had also made it clear that a 150-bed hotel was essential to make the 8,000- to 10,000-seat arena, which would feature minor league professional hockey and football, financially successful. Traficant also was of the opinion that a public-private partnership was essential because the city did not have the expertise to develop such a project.
However, city council decided that the arena -- a 5,400-seat facility is being touted -- would be built between the Market Street and South Avenue bridges. And now that $1.8 million in federal money has been spent, the city is required to utilize the bridge property for the project. The absence of private investment has not dissuaded lawmakers.
But in its rush to take control of the land, the city not only ignored its established procedure for buying property, but also set a standard that, in effect, lets the property owner set the price.
To now turn around and use eminent domain to seize other property exposes the city to a charge of applying a double standard and to potential lawsuits.
Had the city used eminent domain to take over the Alexander property, we would not have objected to similar action being taken against any other property owners. We do believe that it is appropriate for government to use eminent domain when there is clear public purpose for whatever land is being sought. The development of the convocation/community center does meet the standard of a public purpose.
In the interest of full disclosure, the area identified by the Youngstown Planning Commission as being blighted includes land, a dock and tunnel along Front Street near the Marshall Street Bridge that is used by The Vindicator to unload and deliver newsprint into its printing plant.