CIC weighs ending exclusive city contract

The proposal wouldn't mean the end of the CIC, its president says.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- The Youngstown Central Area Community Improvement Corp. was to consider a plan today to terminate a contract to be the city's exclusive downtown economic development agent.
The CIC has served in that capacity for the city since its creation in 1988.
The proposal would allow the CIC's executive committee to enter into a deal with the city's board of control to cancel the agreement, effective Dec. 31.
There is legislation on Wednesday's city council agenda to authorize the board of control -- consisting of the mayor, finance director and law director -- to sign the CIC deal.
The proposed deal doesn't mean the end of the CIC, said G. Richard Pavlock, its board president.
"This would give the city flexibility" when it comes to businesses in the downtown district, he said. "The city will be able to do things by itself. The CIC will continue to develop downtown Youngstown. I don't see our goal of downtown development changing."
Official designation
Essentially, the CIC would just lose its official designation if the legislation is approved, Pavlock said.
Officials with the CIC and the city have negotiated this deal for about three months.
There are some instances when it is easier for businesses to deal directly with the city rather than to first go through the CIC, city and CIC officials say.
City officials wanted the CIC to move fast on the sale of three vacant buildings -- the Wells Building, the Armed Forces building, and the State Theater -- on West Federal Street to P & amp;P Development for $24,000.
It took the CIC more than 18 months to iron out the deal because of the agency's concerns about the company's bank financing and what should be done with the structures if the project failed.
The city opted in September to provide a performance bond if the P & amp;P plan failed.
"This action is truly in the best interests of both parties," said city Finance Director David Bozanich, who is also a CIC member, of the proposed deal. "It will allow for the streamlining of the development process while adding value to" the city and the CIC.
Working out details
The details of the deal still need to be worked out.
But the tentative proposal calls for the CIC to retain control over the George V. Voinovich Government Center, the construction of the 7th District Court of Appeals building, the demolition of the Masters building complex for a parking lot, and five buildings west of the Youngstown Business Incubator. Those buildings are slated to be demolished and replaced by a 25,000-square-foot Youngstown Technology Center.
The CIC owns about four vacant buildings downtown. It isn't known which entity will control those structures. The city wants the CIC to transfer its interest in the Erie Terminal so it can seek redevelopment of the vacant building.
The CIC also plans to change the number of members on its board, Pavlock said.
There are 25 members on the board. Getting enough members to attend meetings to take official action has been a long-standing problem for the agency.
One plan calls for the board to shrink to 15 members, eliminating the public-sector appointees.
Also at today's meeting, the CIC board was to accept the resignation of Jason T. Whitehead, its executive director. Whitehead is leaving the CIC effective Dec. 31 to take a Cabinet-level job in the incoming administration of Mayor-elect Jay Williams.
skolnick@vindy.com