Youngstown hotel developer thanks port authority staff for ‘creative minds’

Staff report

WARREN

The developer of the 130-bed DoubleTree by Hilton hotel project in downtown Youngstown met with the Western Reserve Port Authority to thank its staff for helping him put the deal together.

“I can’t thank you enough for the creative minds and the support that the port authority has given this project,” said Dominic Marchionda, managing member of NYO Property Group, which has started on asbestos removal at the vacant Stambaugh Building at 44 E. Federal St. Construction is expected to be finished by December 2017.

Marchionda was on his way after Wednesday’s meeting to Cleveland to sign papers associated with the financing for the project, which will close Friday.

Marchionda singled out Anthony Trevena, director of economic development for the port authority’s financing arm, called the NEO Development and Finance Authority.

“How many things did I bounce off of you and how many directions did this thing take?” Marchionda asked Trevena. He said Trevena brought “a lot of insight to the project.”

In the end, Marchionda chose to have the port authority provide a capital lease and sell revenue bonds for part of the $35.4 million project.

The capital lease will save NYO about $750,000 by eliminating sales taxes on construction materials, Trevena said.

The port authority will “be the owner ostensibly” for the building and construct the renovations on behalf of NYO, said Atty. Justin Markey of the Akron law firm of Roetzel & Andress.

Lease payments from NYO will pay off the bonds. The port authority has no financial risk in the arrangement, Markey added.