Federal Building to receive tax credit

By DAVID SKOLNICK

skolnick@vindy.com

YOUNGSTOWN

The owners of a downtown building will receive about $445,884 in state tax credits toward their planned $2.4 million renovation of the historical structure.

The 108-year-old Federal Building, on the northwest corner of West Federal and North Phelps streets, was among 13 buildings to receive $28.3 million in state historic-preservation tax-credit awards announced Friday by Gov. Ted Strickland.

The Gatta Co. LLC, owned by Dominic L. Gatta Jr. and Dominic L. Gatta III of Niles, plan to use the first floor for commercial office space and potentially a restaurant. The upper three floors are to be converted into 12 apartment units.

At least some of the building’s tenants have been told to leave, the younger Gatta said. He declined to say which businesses.

But Geo’s Music on the first floor and a number of the businesses on the upper floors will leave.

The improvement work to the building began last week with the project expected to be done in December or January, Dominic L. Gatta III said.

The Federal Building, named after the former Federal Savings and Loan Bank, which was located there, is among about 50 structures in Mahoning County on the National Register of Historic Places.

The Gattas purchased the building for $165,000 in October 2009.

“The rehabilitation of Youngstown’s Federal Building will bring new life to a significant historic structure,” said U.S. Rep. Tim Ryan of Niles, D-17th. “I would like to commend the Gatta family for their vision and persistence with the project, which will add even more excitement to the resurgence of activity in downtown Youngstown.”

Owners of buildings that qualify under the state historic preservation program receive tax credits for 25 percent of their construction costs that meet the requirements of the U.S. Secretary of the Interior’s standards for rehabilitation of historic properties, according to the governor’s office. A tax credit is a reduction in taxes owed.

The state estimates that to be $445,884 for the Federal Building. But the younger Gatta said that amount could fluctuate.

The tax credits are given after the improvement work is done.