It’s official: Cafaro Co. moving HQ to Eastwood Mall

By KALEA HALL

khall@vindy.com

NILES

The Cafaro Co., after months of speculation, confirmed Tuesday that it will move its headquarters from Youngstown to Niles.

“In meeting with the city of Niles officials, they have been very cooperative and welcomed us,” said Anthony Cafaro Jr., co-president. “Niles has been a second home to us.”

The Cafaro-owned Eastwood Mall Complex is where the new, approximately 50,000-square-foot headquarters will be located — near the recently opened Residence Inn by Marriott on Youngstown-Warren Road.

A building permit filed in January with Niles lists K and M Contracting of Ohio in Vienna as the contractor. The permit lists the estimated cost at more than $1.5 million.

“The work that has been going on there for the past year has been structural work,” Cafaro said. “This is a part of a larger strategic plan for the Eastwood Mall complex.”

About 20 percent of the project is now complete. The next phase includes enclosing the building and installation of interior furnishings, which will go out to bid in the next 10 days, Cafaro said.

The current office building at 2445 Belmont Ave. was built in the 1960s and expanded in the 1970s and now has about 50,000 square feet with two floors, similar to the new location, Cafaro said.

Niles Mayor Ralph Infante said moving the Cafaro offices to Niles, and other ongoing projects there, suggest that income-tax revenue will rise. This month, Niles was placed in a state of fiscal emergency by state Auditor Dave Yost. Infante could not be reached Tuesday for further comment.

But while one community may benefit from the relocation, Youngstown will take a hit.

“It is unfortunate for the city finances. We lose probably $225,000 in taxes,” Mayor John A. McNally said. “That is something that will concern us within our budget.”

David Bozanich, city finance director, also said the move would cost the city “several hundred thousands in revenue” because of the loss in wages and taxes.

“We have dealt with this in the past, and I am sure we will deal with this in the future,” Bozanich said of a company’s leaving the city.

Youngstown’s 2.75 percent income tax is among the highest in the state. That is a tax on those who work in the city.

Youngstown also has a profit tax on companies in the city that requires those businesses to pay 2.75 percent of all profits they earn.

Niles has a 1.5 percent income-tax rate.

Cafaro said because of the difference in income-tax rates, employees at the Cafaro headquarters will receive a pay raise. The number of employees varies at the corporate office, but Cafaro said there are approximately 200.

Next Tuesday, The Cafaro Co. will have a news conference on the relocation and also unveil plans for another multimillion-dollar project.

Cafaro is ranked the 12th-largest mall developer and the largest privately-held mall developer with 12 enclosed shopping malls and 40 other open-air retail centers in 11 states. Eastwood Mall was the third shopping mall Cafaro opened.