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Sale of Erie Terminal delayed again
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Lou Frangos
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Dominic Marchionda
YOUNGSTOWN
The sale of the Erie Terminal to a company planning to convert the historic building into an apartment complex is delayed for another month — again.
US Campus Suites LLC, owned by Dominic Marchionda of Poland, said he needs more time to deal with various issues before finalizing the deal with Louis Frangos, whose Cleveland company, USA Parking Systems, owns the Erie Terminal.
“We’re still moving forward but, unfortunately, there are some issues that are environmentally related [that slowed down the process],” Marchionda said. “But it’s nothing that can’t be overcome.”
There also were concerns about the building retaining its $3.22 million in state and federal historic-preservation money once the sale goes through, Marchionda said. That has been resolved, he said.
USA Parking was to sell the building at 112 W. Commerce St. to US Campus Suites by December. The sale was delayed for a month because of “last-minute” paperwork, Frangos said in early January.
On Monday, Frangos said the two sides agreed to extend the sale date till the end of this month.
“We’re still working with Dom on it,” Frangos said. “He needed a little more time.”
The sale should be done in the next 10 days, but US Campus Suites was given till the end of February, Frangos said.
Though confident about the sale, Frangos said, “Nothing is definite until you close [the deal].”
But he said last month that he’s committed to buying the vacant building, and spending $7 million to $7.5 million to turn it into a 60-bed apartment complex for Youngstown State University graduate students and upperclassmen as well as young professionals by the end of the year.
Also, Marchionda wants to use a portion of Erie for retail space.
City officials say the building has asbestos inside, and it would cost about $500,000 in removal expenses.
The city is discussing a financial incentive with Marchionda to offset some of the cost of the Erie project.
US Campus Suites built the $8 million, 114-bed Flats at Wick student-housing complex off Madison Avenue and Elm Street near YSU.
Marchionda had planned a second phase of the Flats project with another 114 beds near the site of the first location but decided to wait in order to develop the Erie Terminal, which he’s long coveted.
The Erie project is to receive $3.22 million in state and federal historic preservation money. The project must be done by October 2012 or the money would be lost, city officials say.
Marchionda previously has said he’s confident the work will be done by the deadline.
Frangos, who owns several buildings and parking lots and decks in downtown Youngstown, purchased the Erie Terminal from the city in June 2007 for $375,000.