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Financing for a downtown Youngstown project will be finalized this week
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Strollo Architects will begin a $5 million improvement project later this week on the Wells Building in downtown Youngstown. The work at the building that’s been vacant for about 30 years is expected to be finished Sept. 1.
YOUNGSTOWN
Strollo Architects will finalize its financing and start a $5 million improvement project of the long-vacant Wells Building this week, the firm’s owner said.
“Construction will start moments after closing [of the construction loan],” said Gregg Strollo, the firm’s owner.
The project, proposed more than a year ago, was delayed because of national lawsuits regarding government tax credits, he said.
“These are complex projects to structure financially, but everything is now in place,” Strollo said.
The city had offered to loan money to Strollo for the downtown project — $2 million last year and $700,000 earlier this year — but the firm instead is borrowing from Huntington Bank. The loan is expected to close at the end of this week.
The city is giving some money toward the project.
The city’s board of control Tuesday approved a $520,000 grant for water and wastewater improvements, and $100,000 toward the general expenses of the project.
The city will provide a tax abatement for the project sometime after the company applies for it, said T. Sharon Woodberry, the city’s economic-development director.
Also, Strollo will receive $1 million in state tax credits and about the same amount in federal tax credits after the project is complete.
Strollo Architects, housed at 20 Federal Place, plans to use the ground floor of the 23,564-square-foot building as its office and have 12 apartments on the structure’s upper three floors.
If this project hadn’t work out, the Wells Building, on the southeast corner of West Federal and South Hazel streets, would have been demolished, according to officials with the Youngstown Central Area Community Improvement Corp.
The nonprofit downtown property agency sold the structure to Strollo for $1.
“This relieves the concerns of a lot of people about another building being torn down downtown and replaced by a parking lot,” Woodberry said. “This project will take a vacant downtown building and improve it. We’re excited to proceed forward and that we’re able to retain Strollo Architects downtown.”
The expected completion date is Sept. 1, 2015, Strollo said.
The 97-year-old building last was used about 30 years ago as an Armed Forces recruiting facility.