Friday, September 19, 2003
Committee members expressed concern about possible repair costs.
THE VINDICATOR
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Downtown's redevelopment agency will negotiate with owners of a prospective wine and cigar lounge.
The agency also will try to find space for a jewelry store.
The property committee of the agency, the Youngstown Central Area Community Improvement Corp., agreed Tuesday to negotiate a lease with S.K.A. Limited.
S.K.A., a partnership led by local attorney Jeffrey A. Kurz, is proposing to invest $250,000 over five years into the former First Federal building. The group wants to turn the old bank on West Federal Street into an upscale wine and cigar lounge and, eventually, a second-floor martini bar.
The committee chose to talk first with S.K.A. about the First Federal building instead of Glenwood Jewelers. Owners of the jewelry repair and retail store, Marina and Daniel Tatarcivc, also wanted First Federal.
S.K.A. has more money available to repair the building than Glenwood Jewelers does. That's why the committee decided to pursue a lease with the lounge, said Mark Brown, property committee chairman and general manager at The Vindicator.
Concerns
Committee members expressed concern that fixing wiring and plumbing in the former bank, which has been vacant for years, will cost thousands of dollars.
S.K.A.'s application outlines $30,000 in cash available for the project. Other financing would include $80,000 in projected public funds and a $144,000 bank loan. Glenwood Jewelers' application shows just a few thousand dollars available for repairs.
Charles Sammarone, a committee member, said he wants S.K.A.'s financing in hand before voting to approve a lease. Financing tends to be the most critical issue and often falls through in such deals, he said.
Indeed, there have been at least five proposals to use the First Federal building since 1999. None of those deals was completed, however.
Committee members said they will seek other space downtown for Glenwood Jewelers, which wants to move from Glenwood Avenue. Committee members said they want the business to come downtown. CIC said it will look for either city or CIC-owned buildings that might suit the business.
Water-damage bill
Meanwhile, the property committee learned that CIC is responsible for an $868 bill for water damage to merchandise belonging to Two Guys. The clothing store rents space on West Federal Street from the downtown agency. Water leaked into some of the store's display cases during July's heavy rains.
The committee also talked with Robert Smith, co-owner of the Insurance Center in the Semple building on West Federal Street. He asked for a break on his $1,200 a month rent that CIC charges, considering recent water damage to his location.
Committee members said they still need a signed lease from the Insurance Center, but that they would work to fix the water problem and re-evaluate the rent.
rgsmith@vindy.com