MAHONING COUNTY Treasurer will finance new court building

The building should be ready for occupancy by Jan. 1, 2006.
By BOB JACKSON
VINDICATOR COURTHOUSE REPORTER
YOUNGSTOWN -- The city will use an investment program through the Mahoning County treasurer's office to finance construction of a building to house the 7th District Court of Appeals.
The Youngstown Central Area Community Improvement Corporation will borrow up to $3 million from the treasurer and pay it back over five years. The new building will be on West Federal Street and will house the appellate court, which is on the fourth floor of the county courthouse.
The loan was approved Tuesday by the county's investment advisory committee.
How it works
The program, started in 2002, makes low-cost funds available to local governments by allowing them to make short-term loans from the treasurer rather than through banks or investment companies. The treasurer uses money that would otherwise be invested in short-term securities, which the county already does.
In this case, the CIC will borrow the funds and be in charge of building construction and operation. It will lease space in the building to the county, which is responsible for providing office space and a courtroom for the appellate court, which takes in seven counties.
The county will lease the building from the CIC, using revenue it receives from the other counties that belong to the appellate district. Once the debt is repaid, the county can buy the building for $1, said Atty. Edwin Romero, who represents the CIC.
The court is expected to pay about $250,000 a year in rent to start, with the payment increasing 1.5 percent a year for 30 years.
Varying interest rates
Treasurer John Reardon said the interest rate to the CIC will vary, based on the federal funds rate. It will start at 2.5 percent and is expected to go up over the life of the loan.
Under Ohio law, county treasurers can buy municipal bonds issued by any city, township or village within their county. The municipalities that borrow the money repay it at a rate comparable to what the county would get on its short-term investments.
"This is technically an investment for the county," Reardon said.
The subdivisions save 2 percent to 4 percent by selling their obligations to the treasurer rather than on the open market, and the county still makes interest on its investment, so it benefits both sides, Reardon said.
Bids will be sought
The CIC plans to build a two-story, 13,500-square-foot facility in the 100 block of West Federal. Romero said bids are expected to be sought within two to three weeks and the building is to be completed and ready for occupancy by Jan. 1, 2006.
The other counties served by the court are Columbiana, Belmont, Carroll, Harrison, Jefferson, Monroe and Noble. Each county contributes toward the cost of the court's operation. Mahoning, as the largest county, pays about 45 percent of the cost, officials have said.
The appellate court judges have long complained about a lack of space in the courthouse. They have spent some seven years trying to find a suitable location to move the court.
bjackson@vindy.com