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Council OKs loan for housing
U.S. Campus Suites plans to build four student housing complexes.
YOUNGSTOWN — City council gave the go-ahead to a $2 million loan for a student housing complex near Youngstown State University.
The loan, recommended Wednesday by council, needs final approval from the city’s board of control.
The housing developer, U.S. Campus Suites, plans to spend $7.3 million to construct the building, with about 115 beds, on Elm Street near Youngstown State University. Construction is expected to start in April and take about a year to complete.
The company also plans to build three other student housing complexes nearby in the city’s Smoky Hollow area.
Overall, the Flats at Wick project will cost $26 million to $30 million and have about 450 beds, said Dominic Marchionda, the head of U.S. Campus Suites.
The company planned to do all four units at once, Marchionda said, but because of the struggling economy it’s being done in phases. Even so, he said he’s confident the project will be a success.
Under the conditions of the city loan, pending approval of the board of control, U.S. Campus Suites received a $2 million irrevocable letter of credit from Key Bank. If U.S. Campus Suites defaults on the loan, the city would receive the money the company would borrow from the bank.
The plan is to permit the company to borrow the money at 0.25 percent interest for up to 18 months.
Also Thursday, council authorized the board of control to enter into an agreement with the owners of the Four Seasons Flea and Farm Market for a 10-year, 75 percent real property tax abatement.
The market’s main building on McCartney Road was destroyed in a June fire. The owners of the market on the city’s East Side plan to rebuild that structure and reopen in April.
The market’s owners plan to spend $1.25 million to $1.8 million on a new, 34,000-square-foot building.
skolnick@vindy.com