Port Authority celebrates ‘lightning fast’ work on financing deal for YSU project

By Ed Runyan

runyan@vindy.com

WARREN

Wednesday’s Western Reserve Port Authority meeting had the feel of a celebration, as the board approved a financing deal that came together in less than two months.

The board approved financing and a “capital lease” for a $7.8 million student-housing complex at Youngstown State University called University Edge.

The 162-unit, four-story complex will be constructed on Rayen Avenue between Fifth and Belmont avenues by Hallmark Campus Communities of Columbus and Fortress Real Estate Co. of Atlanta.

Officials want it to be ready for the start of classes next fall.

Anthony Trevena, the port authority’s economic-development director, said the project will involve 496 beds altogether — 162 beds in the first phase and 334 beds in a later second phase. The port authority will also finanace the second phase, Trevena said.

Dave Mosure of MS Consultants told the board how he attended the groundbreaking for the first phase Sept. 28 and mentioned to officials that such a project might be a good fit for financing from the port authority.

“A month or two later, we’re doing a deal,” Mosure said. “Congratulations on lightning-fast work,” he said to the economic-development staff of the port authority, including Trevena.

“Business can’t wait six months,” agreed Michael DiPerna of Columbus, the port authority’s financing consultant and bond underwriter who is in town attending meetings involving the port authority and banking leaders.

John Moliterno, port authority executive director, said the YSU project is also exciting because it is the first one the port authority has done with Youngstown State University and its president, Jim Tressel.

“And we hope it continues,” Moliterno said.

Port Authority board member Sam Covelli, who hosted the meeting in his Covelli Enterprises meeting room, said last week’s economic-development committee meeting left him feeling very optimistic about the direction the port authority is moving.

“We’re on our way. We’re getting there,” he said. “I never left a meeting so excited.”

The University Edge project is the second recent one using a capital lease, in which the port authority takes ownership of the project, finances it, then leases it back to the company. That process provides a sales-tax exemption on construction materials.

It’s the same type of financing the port authority arranged for the $12 million Inn at Poland Way, an 89-unit assisted-living center off U.S. Route 224 near Clingan Road in Poland Township whose groundbreaking was Oct. 27.

In other business, the port authority approved the hiring of Nick Coggins, 28, as program and communications manager at a salary of $42,000 per year. Coggins started working for the port authority during an internship from Youngstown State University, where he graduated with a degree in communications.