Oakhill's owner files with bankruptcy court

The city health department is looking for a new home.
By WILLIAM K. ALCORN
VINDICATOR STAFF WRITER
YOUNGSTOWN -- Southside Community Development Corp., owner of Oakhill Renaissance Center, has filed for Chapter 7 bankruptcy protection in U.S. Bankruptcy Court Northern Ohio District.
According to court records, the private nonprofit corporation filed the action May 3.
Chapter 7 of the Federal bankruptcy law is a proceeding under which a trustee collects the debtor's nonexempt assets, converts them to cash and distributes them to the creditors -- liquidation.
In its filing, SCDC listed assets of $100,001 to $500,000, and debts of between $500,001 and $10 million. The action is signed by Janet Yaniglos, a member of the SCDC board of trustees, and Atty. Stuart A. Laven of Cleveland.
In a memo delivered Monday to tenants of the Oakhill Renaissance Center, the SCDC board of directors advised the tenants about the bankruptcy filing and said no SCDC property may be removed from the building.
Tenants at Oakhill Renaissance Center, 345 Oak Hill Ave., have been looking for new quarters since the SCDC, citing financial problems, informed them April 19 that the building would be closed by the end of last month.
Oakhill Renaissance Place, the former Forum Health Southside Medical Center, was taken over by SCDC in 1998.
Background
SCDC's closing of Oakhill Renaissance Center and filing for bankruptcy resulted when Forum Health, financially challenged itself, ended its annual subsidy of Oakhill's operation. When the subsidy ended, SCDC defaulted on a $2 million development loan, which Forum had guaranteed. As a result, Forum had to assume the $1.9 million remaining on that loan, officials said.
Tenant eviction was staved off by a 14-day temporary restraining order granted April 28 by Mahoning County Common Pleas Court. The order prevented public utilities from cutting off services to Oakhill and ensured all tenants, including the Youngstown City Health Department, have temporary access to the premises.
A hearing on a motion for a preliminary and permanent injunction is scheduled for 8:30 a.m. Friday before Judge R. Scott Krichbaum.
Neil Altman, city health commissioner, said his board has directed him to look for new facilities.
Brian R. Corbin, health board president pro tem, urged anyone who knows of sufficient space to house the health department -- which now has 23,000 square feet -- within the city to contact the health department.
"We want to assure the public that the board will do whatever it takes to maintain services," Corbin said.
alcorn@vindy.com