YOUNGSTOWN Building sale policy for CIC loosens

Businesses will now be able to buy CIC-owned buildings more quickly.
THE VINDICATOR
By DAVID SKOLNICK
VINDICATOR POLITICS WRITER
YOUNGSTOWN -- The city's downtown redevelopment agency loosened its policy on building ownership, but it doesn't go far enough for two members.
The Youngstown Central Area Community Improvement Corp. approved a recommendation Tuesday from its property committee to permit business people to buy CIC buildings outright under certain conditions.
Buyers could pay the full purchase price upfront, or pay 60 percent, and the CIC would hold a mortgage on the remaining 40 percent. To qualify, a buyer has to show the financial ability to buy, renovate and operate the building; commit to invest at least three times the sales price to renovate or expand it, and secure a bank loan that amounts to at least 33 percent of the total project cost.
The agency has insisted for years on a six-year lease-to-own policy on the nearly 20 buildings it owns.
Reason for changes
The new policy was initiated because of two businesses interested in buying CIC buildings. The businesses are leasing the John R. Davis and the old First Federal buildings on West Federal Plaza. Each has found bank financing for renovations difficult because of its lease, CIC officials say.
Although Mayor George M. McKelvey and city Finance Director David Bozanich, both CIC members, support the change, they both urged their fellow board members to go even further in encouraging business people to do business with the CIC.
Bozanich said the CIC should let business owners pay only 10 percent of the purchase of a CIC-owned building, and if they meet certain provisions -- such as a particular level of employees and follow-through on capital improvement plans -- the CIC would not require them to pay the remaining 90 percent cost of buying the building.
Most CIC-owned buildings are worth between $20,000 and $30,000, said Reid Dulberger, a CIC staff member.
The CIC board agreed to refer Bozanich's proposal to its property committee for future consideration.
skolnick@vindy.com