Building owner sees projects as investment

Work at the two buildings will cost about $13 million.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- Lou Frangos, the primary owner of companies planning to convert two downtown buildings into high-end apartment/condominium complexes, sees the projects as long-term investments.
Frangos said Wednesday that he thinks there is a market for downtown housing in Youngstown, and the demand is expected to "grow over the next five years, 10 years."
Management Parking LLC, a company primarily owned by Frangos of Cleveland, plans to spend about $13 million to convert the Wick and Realty buildings into housing complexes over the next year. Youngstown Wick Building Real Estate, also primarily owned by Frangos, co-owns the Wick Building.
Frangos plans to start the work in the next 45 to 60 days and have the projects finished in about a year.
Seeking no-interest loan
City council agreed Wednesday to authorize the board of control to negotiate terms of a no-interest loan for up to $4 million to improve the Wick Building.
The city sold the 11-story building on the northeast corner of West Federal and Phelps street to the two companies for $125,000 in March 2005. The Burdman family donated the building to the city in 1994.
To obtain this loan from the city, Frangos' companies had to provide an irrevocable letter of credit from a bank.
The city is reimbursed the full amount of the loan by Frangos' companies or by the bank that issued the letter if the companies default.
The loans must be paid in full within 18 months, though the city can request repayment at any time.
City council also approved legislation Wednesday to permit the board of control to work out a deal with Management Parking to lease five city lots behind the Realty Building for parking.
The plan for the 13-story structure on the southeast corner of East Federal and Market streets is to convert it into an apartment/condominium complex, except for its first floor.
The building's first floor houses the Bean Counter coffee house and a new downtown WYTV television studio.
"It's been the aim of the city to get people to live downtown for years," said city Finance Director David Bozanich.
Frangos said he's already invested about $10 million in downtown Youngstown between buildings and parking decks and lots.
Other business
Also Wednesday, council authorized the board of control, consisting of the mayor, law director and finance director, to:
UPay $50,283 to Schindler Group, a multinational company with its headquarters in Switzerland, for repairs to two elevators that received water damage to the city-owned 20 Federal Place, the former Phar-Mor corporate headquarters on West Federal Street.
UNegotiate the sale of four city-owned lots to the Youngstown Tube Co. on Andrews Avenue. The steel tube manufacturing company is planning a $1.5 million expansion that should be done by December.
skolnick@vindy.com