YOUNGSTOWN $1 million sought to demolish buildings

This would be the most money spent in a year for razing structures in the city.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- Mayor Jay Williams wants to use $1 million from the city's general fund budget annually to attack blight by demolishing dilapidated structures.
About 750 houses on the city's list of properties need to be demolished, and Williams estimates about 200 to 300 more houses also need to come down. Some 100 commercial sites need to be demolished, too, he said.
The city spends money annually from either the general fund or its Community Development Agency fund for housing demolition, Williams said.
But if city council approves the $1 million allocation, it would be the largest amount Youngstown has dedicated to demolition.
The $275,000 allocation in the last CDA budget was the most spent by the city for demolition, said Finance Director David Bozanich.
The city is able to set aside $1 million from this year's general fund budget because it finished 2005 with a $1.8 million surplus, Bozanich said.
Saving about $1.1 million in workers' compensation costs and an increase in tax receipts are largely responsible for the surplus, Bozanich and Williams said.
In 2005, the city spent $35,588,188 of general fund money. Council will approve the 2006 budget by next month. The proposed 2006 city budget is $37,975,835, a 6.7 percent increase from the 2005 budget, Bozanich said.
Bozanich expects a surplus of $400,000 to $500,000 at the end of this year, but said nothing is definite. Bozanich is scheduled to give council's finance committee a budget presentation at 4:30 p.m. Wednesday.
SBA initiative
Besides the proposal to set aside $1 million for demolition, the Williams administration also wants to increase the Youngstown/U.S. Small Business Administration Initiative by $800,000.
That money would be used to stimulate economic development in the city, with one of its key provisions being an increase in the amount of grants given to companies for demolition, Bozanich said.
Companies can receive a maximum grant of $20,000 for demolition. That would increase to up to $50,000 in the proposed 2006 budget, Bozanich said.
The proposed budget includes an increase of about $1 million for capital improvement projects, he said.
The $1.8 million surplus from the 2005 general fund budget is the largest carryover for Youngstown in nearly 30 years.
"We have a healthy carryover, but we need to use it for these vital programs," Bozanich said. "We don't expect a surplus this size in the future. One reason for the healthy carryover is our major companies are doing well, but it's a volatile number."
Demolition vital
An organized demolition plan is vital to the revitalization of the city, and is a major component of the Youngstown 2010 development plan, Williams said.
The demolition of a house typically costs $2,500, Williams said. But if the house is in need of remediation, that cost can significantly increase, he said.
Because of the expense and the limited amount of money available for demolition, structures with remediation issues weren't demolished in the past, he said.
"If there are five houses in a neighborhood that need to be demolished, instead of just doing the two that are easy, we'll knock them all down," Williams said. "It's more costly, but it's better for the city and the neighborhood long-term. Demolitions now are scattered. We need to get away from that."
Williams wants to spend about $1 million annually over the next few years to eliminate blight from neighborhoods and commercial areas.
The money would come from the general fund, but the city could also use CDA funds, he said. The mayor is considering a plan to spend the $1 million annually, alternating between the neighborhoods and commercial properties each year.
Although the general fund budget finished 2005 with a surplus and Williams is working to keep costs in check, he cautioned those who expect the city to immediately reduce its 2.75 percent income tax.
"The goal is to increase revenue and cut costs," he said. "If we do that, we can in the future consider a cut. But that's a long way off."