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Youngstown council is being asked to create an energy district for a downtown hotel
YOUNGSTOWN
City council will consider legislation Wednesday to establish an “energy special improvement district” at the proposed downtown DoubleTree Hilton hotel.
The designation would allow the hotel’s owner to issue bonds to make energy-efficient improvements to the Stambaugh Building at 44 E. Federal St.
The legislation by council is needed for the hotel to borrow the money, but the city won’t buy or secure the bonds, said city Finance Director David Bozanich.
“Our obligation is to only establish the district under state statute,” added Mayor John A. McNally.
The NYO Property Group, which owns the hotel location, would pay $5,528,118 over 15 years for the improvements, according to city council legislation.
The money would be used for energy-efficiency work to the Stambaugh Building, including replacing the boiler, chiller and air-distribution system as well as lighting improvements.
The Western Reserve Port Authority voted two weeks ago to issue the energy- efficient bonds for the hotel project.
Youngstown has “no economic liability with this,” Bozanich said. “If it helps make the project more viable, we’re glad to do it.”
The project received approval in June 2014 for a $5 million state tax credit and a $4 million federal tax credit. The plan is to convert the vacant 12-story, 109-year-old building into a 120-bed hotel with a restaurant and banquet facility.
It was announced in November 2014 that NYO had reached an agreement for the location to be a DoubleTree Hotel.
Work was to commence a year ago, but hasn’t started.
Dominic J. Marchionda, NYO’s managing member, couldn’t be reached Monday by The Vindicator to comment.
The hotel project will cost $31 million, Bozanich said. If a nearby parking deck is demolished and replaced, the project’s cost will be about $39.7 million, he said.
Also Wednesday, council will consider enacting “fire department specialty fees” for work with hazardous materials as well as arsons, collapsed buildings and downed utility lines, said Fire Chief John J. O’Neill Jr.
The city has charged fees for the work based on state laws, but doesn’t have local legislation specifying the costs, O’Neill said.
This legislation, if adopted, would resolve that issue, he said.
“I need it for the formality of having a documented ordinance,” O’Neill said.
If there’s a need for the department’s assistance with hazardous materials, the use of a pumper or rescue truck would cost $350 an hour, a ladder truck would be $425 an hour and personnel would be the actual hourly rate per employee or the overtime rate if needed, he said.