County OKs deal in lease lawsuit

‘This closes the final chapter in a bad book,’ a commissioner says.

By PETER H. MILLIKEN

VINDICATOR STAFF WRITER

YOUNGSTOWN — The end of the legal battle between the Ohio Valley Mall Co. and the Mahoning County Commissioners lets the county move forward with unimpeded development of Oakhill Renaissance Place, county officials said.

Commissioners approved a $913,590 settlement agreement at their meeting Thursday.

The commissioners unanimously agreed to pay OVM, a division of the Cafaro Co., $225,000 now and $229,530 in each of the next three years to settle a breach of lease lawsuit, in which OVM said the county failed to fulfill its maintenance obligations at OVM’s Garland Plaza (also known as the McGuffey Plaza).

The county had leased offices for its Department of Job and Family Services there for 19 years, ending in July.

In exchange for that payment, OVM agreed to forgo an appeal of the taxpayer lawsuit the company had filed in an unsuccessful attempt to rescind the county’s purchase of Oakhill Renaissance Place — the former Forum Health Southside Medical Center.

JFS offices moved from Garland Plaza, where the county paid $449,000 annually in rent, to Oakhill in July.

“All of this will be put behind us, and we can move forward,” said County Prosecutor Paul Gains. “I anticipate that the commissioners will now move forward with obtaining full occupancy,” at Oakhill, Gains said. “There’s nothing that’s going to stop them.”

The settlement, which was completed Wednesday, was achieved after an all-day mediation session facilitated by Atty. Anthony Cornicelli on Aug. 8 by order of visiting Judge Richard M. Markus.

Ruled against OVM

Judge Markus had ruled against OVM in a nonjury trial of the taxpayers’ lawsuit in July and would also have heard the breach-of-lease case had it gone to trial.

OVM filed both lawsuits in common pleas court last year, and all five local trial judges removed themselves from both cases.

The county bought Oakhill last summer in U.S. Bankruptcy Court for $75,000, and County Auditor Michael Sciortino wrote the check for that amount immediately after Judge Markus ordered him to do so at the end of the July trial of the taxpayers suit.

Gains characterized the settlement as “a business decision” by the commissioners to resolve the breach-of-lease suit, saying the lease was executed in 1987 and inherited by the current commissioners. OVM had claimed the county was responsible for more than $2 million in deferred maintenance work at Garland Plaza over the 19 years.

“This saga began 20 plus years ago. We inherited a very, very bad lease,” said Anthony Traficanti, chairman of the commissioners. “This closes the final chapter in a bad book, and I’m glad the litigation is resolved,” he said.

“It’s over, and we’re moving on,” said Commissioner David Ludt.

“It’s just a good way to put any potential chance of an appeal and the ongoing litigation to bed,” said Commissioner John McNally IV. “Now the commissioners can move on and concern themselves full time with ensuring that Oakhill is a good county property.”

Sciortino and McNally did not support the county’s acquisition of Oakhill.

“We are satisfied that we have resolved all of our differences with the county on an amicable basis,” said Cafaro Co. lawyer James M. Dobran.

milliken@vindy.com