Youngstown finalizes loan to downtown hotel developer, OKs fire station study

YOUNGSTOWN

The city’s board of control has finalized an agreement in which the municipality will loan $2.7 million to the developer of a proposed downtown hotel.

The board Thursday approved a development agreement between Youngstown Stambaugh Hotel LLC, Youngstown Master Tenant LLC and Youngstown Stambaugh Holdings LLC, and the city, and an enterprise-zone agreement between Youngstown Stambaugh Hotel and the city.

The project will turn the former Stambaugh Building at 44 E. Federal St. into a DoubleTree Hotel by Hilton.

Work is underway at the site, and the $35.4 million project is slated to be complete by the end of the year.

“A model room will soon be ready for the Hilton to review,” Marchionda said. “The restaurant design is complete. We’re on our way. We’re running on schedule.”

Three of Marchionda’s other development projects in the city are the subject of an investigation by state and Mahoning County authorities. Unnamed city officials also are being investigated. Authorities are investigating the legality of more than $2 million the city gave to the three development projects. The money also came from the city’s water and wastewater funds.

In other business Thursday, the board of control approved a request from the fire department to enter into a professional services agreement with Strollo Architects for a preliminary design study for the construction of a new fire station.

Read more about the matters in Friday's Vindicator or on Vindy.com.