City wants property back on the market

Amount of new investment and job creation are two criteria to be considered.
By DENISE DICK
VINDICATOR STAFF WRITER
YOUNGSTOWN -- The city wants the downtown redevelopment agency to transfer its interest in the Erie Terminal building to the city so it can seek redevelopment of the vacant structure.
David Bozanich, city finance director, made the request to the Youngstown Central Area Community Improvement Corporation's property committee meeting Tuesday. Bozanich also is an ex-CIC member.
The city has made an offer to the state to buy the Commerce Street building for $300,000, Bozanich said.
The state is the first mortgage holder on the property.
The building used to house Mahoning County Child Support Enforcement Agency, but that office moved out last year.
The owner is an entity called Erie Terminal Development Corp. and is comprised of CIC and Strouss Building Associates, or SBA.
Bozanich said the city wants to put the building back on the market for redevelopment.
"The interest of the city of Youngstown in this is purely for redevelopment," he said.
Prospective buyers would be judged on the amount of new investment in the city, reuse of the facility and the number of jobs created.
"We don't believe it would sell for anything near what the state is owed," Bozanich said.
In the early 1990s, SBA received a loan for renovation of the building. Bozanich estimated that the state is owed about $850,000 on that loan.
The city also is owed about $900,000 from an urban development action grant given for the work.
SBA later closed the building.
Taking a loss
Edwin Romero, CIC's attorney, said the agency received $400,000 from the city to buy the building and surrounding parking lot and garage in the early 1990s.
Under the original agreement, SBA also was to pay the CIC $50,000 annually. Romero said the agency received one payment in 1992.
"The city is taking quite a hit on this and so is the CIC," Romero said. "If you do the calculations, we're probably in it for about $600,000 that we didn't get paid."
Bozanich said the city also would need to get the back taxes forgiven through a partnership between the city and Mahoning County to make the property attractive.
"We'll have the staff review it and come back with a recommendation next month and get back to you," said Mark Brown, property committee chairman and Vindicator general manager.
In other business, the agency board voted to reappoint five members to additional three-year terms.
The terms of John Moliterno of Allegra Print and Imaging, Pete Asimakopoulos of First National Bank, David Lodge of Home Savings & amp; Loan Co., Dr. David Sweet of Youngstown State University and Garry Mrozek of National City Bank expire at year's end.