43
$7M in grants to redo sites
Improvement work at Realty Towers will start shortly
YOUNGS-TOWN —¬†Two vacant downtown buildings will receive almost $7 million in state and federal grants that will go a long way toward converting them into housing.
The Wick Building at 34 W. Federal St. and Erie Terminal at 112 W. Commerce St., both owned by Lou Frangos of Cleveland, are the recipients of the funding.
Frangos, primarily through his company, USA Parking Systems, owns 10 buildings in downtown as well as a number of parking lots.
“The city and [Frangos] are doing what we can to change the dynamics of the city’s central business district,” said David Bozanich, the city’s finance director. “Downtown housing is a key to help that change.”
Wick will receive $3,667,500 — $2,037,500 from the Ohio Department of Development’s historical preservation program and $1.63 million from a federal historic properties program. The cost to turn the 11-story Wick Building into about 35 condominiums and/or apartments is estimated at about $8.65 million.
Erie will get $3,221,160 with $1,789,533 from the state and $1,431,627 from the federal government. Frangos’ plans call for the three-story building to either have 35 apartment units or be developed into housing for 130 students. The project’s cost is $7,721,634.
Frangos said he doesn’t have a time-table for the two projects yet.
Frangos said he’s first focusing on transforming the upper 11 floors of the 12-story Realty Towers at 47 Central Federal St. into about 25 condos or apartments, primarily for young professionals who want to live downtown.
Frangos received state and federal funding in December 2007 for the $8,337,662 project at Realty. The state provided $1,896,280 and the federal government gave $1,517,024 for the Realty project.
The Realty project should start shortly will take 10 to 12 months to complete, he said.
His goal is to have Wick and Erie done in the next two to three years.
“The projects will be a long-term benefit for the city,” Bozanich said. “There are some short-term problems such as a tough local and national economy and the mortgage crisis. But when they’re built, the projects will work.”
The state awarded more than $34 million Thursday to 15 projects, including Wick and Erie. Among the projects are nine in Cleveland.
In December, the state program awarded almost $15 million to 11 projects, including Realty. Of those 11, six are in Cleveland.
About $36 million went to 11 projects in November 2007, including five to Cleveland.
The program’s purpose is to renovate and rehabilitate historical buildings for commercial or residential use.
The state Legislature authorized the Department of Development to award up to $120 million through this program between July 1, 2007, and June 30, 2009.
skolnick@vindy.com