Friday, May 26, 2006
The committee recommended grants to two other businesses.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- A city small business committee recommended a $20,000 grant to a planned downtown wireless Internet restaurant and lounge.
The Youngstown/U.S. Small Business Administration Revitalization Initiative Committee approved the proposal Thursday from George Lenahan, owner of the Rosetta Stone Cafe. The city's board of control -- Mayor Jay Williams, Law Director Iris Torres Guglucello and Finance Director David Bozanich -- must provide final approval for the grant before it can be given.
If the board approves this grant, it would be the second time the cafe received money through the initiative, and it's not yet open for business.
The committee approved a $37,500 grant to the business in September 2005.
At the time, Lenahan said the project's cost was $250,000.
But that has since increased by $100,000 because of additional material and labor costs, installing enhanced safety systems, and additional heating, ventilation and air-conditioning work, Lenahan said.
Because of the increased costs, Lenahan asked the SBA committee for an additional $20,000.
The business is supposed to open later this year on West Federal Street, near Phelps Street, that formerly housed Team Office, Woolworth's and Rite Aid over the years.
The initiative committee also recommended the board of control approve a $10,643 grant to LinMar Strategies for Entertainment and a $16,620 grant to Delve Diversified Inc.
LinMar is in the Oakhill Renaissance Center, the former Forum Health Southside Medical Center. Southside Community Development Corp., the nonprofit group that owns and operates Oakhill, filed for Chapter 7 bankruptcy protection earlier this month.
LinMar bought the former Faith Chapel Free Methodist Church's Fellowship Hall on Coitsville-Hubbard Road. The company produces "The Valley Gold Show with Debor'ah Benton," a weekly television show, does graphic design and public relations.
Delve Diversified, a start-up property management company, is opening at a building on Belmont Avenue.
Vote deferred
The committee deferred a vote on a request for $12,591 from Coco Cabana, a start-up tanning salon on Lincoln Avenue. A different tanning salon went out of business at that location.
The initiative program received $800,000 from this year's city budget. The program provides grants to companies to stimulate economic development.
Also, the board of control approved paying $15,600 for a required zoning permit from Austintown, where the city is constructing a major water tank. MS Consultants of Youngstown, hired by the city to design the project, failed to include the required permit in bid documents for the nearly $3 million project. It's been more than four months since construction of the tank began.
The board of control approved two contracts with MS, not to exceed $9,700 in total, to replat the vacant Erie Terminal building on Commerce Street and the former Youngstown Sheet & amp; Tube office building on Albert Street.
The city plans to demolish the Sheet & amp; Tube building, and wants to buy the Erie Terminal for development purposes.
skolnick@vindy.com