A changing culture

By Brandon Klein | bklein@vindy.com

YOUNGSTOWN

1111The eight-story building has had a periodic history of triumphs and letdowns since it was built in 1926 as a department store owned by the Strouss-Hirshberg Co. The company was purchased by May Department Stores, based in Cleveland, in 1947, which closed the store in 1986.

In 1987, the building became the Phar-Mor Centre, headquarters of Phar-Mor Inc., the discount drugstore chain, which ceased operations in 2002.

Four years later, the city purchased the nearly 90-year-old building — with only 20 percent occupancy at the time — to prevent it from becoming a completely vacant building in the heart of downtown.

“I think the culture of the building has changed,” said Sean McKinney, the city’s buildings and grounds commissioner, said.

Today the building boasts a 75 percent occupancy, he said.

“There’s activity in the building every day.”

Mayor John A. McNally said the main reason for selling the building is philosophical.

“The city shouldn’t be a landlord of a building with private companies in it,” he said.

The city expects to collect $347,000 this year on the operating side of owning 20 Federal Place because it collects $930,000 annually in income-tax revenue from the building’s workers, according to The Vindicator’s files. The operating costs of the building are more than $1.5 million with more than $2.4 million spent in capital expenses for windows, three elevators, and an air-conditioning unit.

NYO Property Group, one of downtown’s largest property owners, was the only company to submit a proposal to purchase the building at 20 W. Federal St.

The company is offering $1,973,000 over six years to buy it.

The city and the company are in negotiations.

Companies have filled the void that Phar-Mor left such as Los Angles-based VXI Global Solutions, which opened a call center with 40 workers in 2009. After five years, the company employs more than 1,100 workers and recently announced it intends to fill 175 positions by the end of the year.

“Youngstown continues to be steadfast in performance and continually exceeds our expectations. We are very proud of the site, and look forward to its continued growth in the new year,” Toby Parrish, vice president of operations, said in a statement released last week.

The building is also home to government agencies, legal firms, and businesses such as Empyra, a software company, and CT Consultants, an engineering firm.

Additionally, there are six restaurants in the building’s food court that include national chains such as Subway.

It hasn’t been all rosy for some tenants, however.

Among the oldest is Jerry Lee’s Jewelry, which has been at the building for more than 25 years. The general manager of the store, Richard Thomashow, said companies such as VXI are different from Phar-Mor when comparing its employees and management.

“If we had to depend on the building, we wouldn’t be here,” Thomashow said.

The jewelry store’s clientele consists of loyal customers the business has cultivated over the years.

“The biggest problem is there’s no parking [downtown],” he said. “[And] most of the action is at night.”

Other tenants, however, were encouraged by the building’s progress such as Martin Ellis, the optometrist at Plaza Optometrist. He and Dave Bralich, an optician, relocated the business to 20 Federal Place six years ago.

“We all get along here,” Ellis said. “It’s a great place to have a business.”

Though “it was a blow to downtown when Phar-Mor moved out,” the area has seen major improvements with new businesses emerging for the last 20 years, he said.

“We love the building,” said Andre Morgan, the general manager of Two Guys Clothing store. “This building has given us a little more exposure.”

Morgan expressed some concern that not enough people are aware of the shops and restaurants located within the building.

During lunchtime, the food court is moderately crowded, keeping businesses busy.

Ehab Traish and his business partner Thaer Samad brought Mocha Boca Cafe to the food court in September 2013.

Since opening, their business has increased, Traish said.

“[VXI] contributed a lot to keeping the businesses going,” he added.

Traish said businesses get a boost by word of mouth from the building’s employees to their families.

“A lot of people still don’t know what’s inside the building,” he said.

McKinney said the city is focusing on bringing people into the building through its website and social media. The city is also working to increase awareness by hosting upcoming events next year such as a college fair in March.

“We look at it as being the hub of downtown,” McKinney said.