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Downtown developer gets $2M loan, $350K gift from city council
YOUNGSTOWN
City council authorized the board of control to loan $2 million and give $350,000 for water utility expenses to the developer of the Erie Terminal.
U.S. Campus Suites of Poland is working on an $8.4 million project to turn the vacant downtown industrial structure into a 65-bed apartment complex with a coffee shop, deli and pub on the first floor.
Rental housing on the building’s upper five floors will be targeted toward Youngstown State University graduate students and upperclassmen as well as young professionals. The building at 112 W. Commerce St. is a short distance from YSU.
“It’s one more piece to the puzzle of downtown,” said Councilwoman Annie Gillam, D-1st, after Wednesday’s vote. The Erie Terminal is in her ward. “The project restores an old building rather than having to tear it down. Getting people to live downtown is also a good thing.”
Under conditions of the city loan, U.S. Campus Suites must receive a $2 million irrevocable letter of credit from an accredited lending institution. If the company defaults on the loan, the city would receive the money borrowed from that bank. The company would borrow the $2 million from the city at a 0.25 percent interest rate for up to 12 months.
U.S. Campus Suites borrowed $2 million in 2009 from the city for its $8 million, 114-bed Flats at Wick student-housing complex near YSU. The company repaid the loan in 10 months.
U.S. Campus Suites will get $3.22 million in state and federal historic-preservation money after the project is finished next year.
The Erie Terminal project “is good for the city as it helps solidify the tax base,” said Mayor Jay Williams.
Also, U.S. Campus Suites has an option to buy the Wick Building at 34 W. Federal St., and the company is considering turning that vacant 13-story structure into a hotel.
“It’s still in the early stages, but a hotel downtown would do well,” Williams said. “There’s still work to be done, but it’s inspiring that it’s being considered.”
On Wednesday, council also voted to permit the board of control to provide $100,000 each for water-utility expenses at two proposed Bottom Dollar Food stores to be located at 621 W. Princeton Ave. and 890 E. Midlothian Blvd.