Building's increasing occupancy pleases official

A pizza shop will open in July in the food court.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- The former Phar-Mor Centre is about 60 percent occupied, and the city is about 30 days away from taking ownership of the West Federal Street building, a city official said.
The city has experienced great success in luring businesses to the building, now known as 20 Federal Place, since it obtained the lease more than a year ago, said Jeffrey L. Chagnot, the city's economic development department director.
The occupancy rate during that time went from about 35 percent to 60 percent, Chagnot said, as the city attracts businesses to the facility with inexpensive rental fees.
Most businesses pay $3 a square foot at the building with that amount increasing to $7.50 a square foot after five years, he said.
In addition to the $3 a square foot, those in the food court also pay a $2.50-square-foot fee for the maintenance of the common area, where people eat, Chagnot said.
Pizzeria approved
On Thursday, the city's board of control approved a lease agreement with Pizza Joe's for 621 square feet in the food court. The pizza place will open in July.
There were seven spots in the food court with three already occupied and Pizza Joe signed to a lease, said T. Sharon Woodberry of the city's economic development department.
The city is negotiating to bring back Jay's Famous Hot Dogs to 20 Federal Place, she said. That would leave only two vacancies in the food court, she said.
Buying the building
The 86-year-old building is owned by 27 members of the Wick family. The city has negotiated with the family members for more than a year to buy the building for about $850,000.
The negotiations are in the final stages, Chagnot said, and the deal should be done in about 30 days.
City officials had expected to buy the property in October 2005. But with so many Wick family members owning a piece of the structure, the purchase is proving to be a challenging and lengthy process, Chagnot said.
The city took over the building's leasing responsibilities from Strouss Building Associates in February 2005, Chagnot said.
The Wick family first leased the building to the Strouss Co. in 1920 for a department store, and the lease was then passed to the May Co., and then to the city in 1986, Chagnot said.
The city turned over the leasing responsibilities in 1989 to Strouss Building Associates.
Phar-Mor used the building as its corporate headquarters until the company filed for bankruptcy in 2002. Strouss continued to manage the building until February 2005, when the city took it over.
The building has 400,000 square feet, with about 300,000 square feet of rentable space, Chagnot said.
The building has six full floors, and its two upper floors have partial space. The eighth floor is unfinished and can't be used for anything but storage, Chagnot said.
The city's board of control already has hired companies for nearly $400,000 to repair the building's roof and to improve its exterior marquee. The city plans to make other improvements to the building.
skolnick@vindy.com