Council to Consider Loan for $16.5M Wick Project
YOUNGSTOWN, Ohio -- City Council is poised to approve a $2 million float loan and a $500,000 water/wastewater grant for the $16.5 million Wick Building renovation project.
The term of the float loan will be 12 months at a quarter-percent interest, based on the developer, Wick Properties LLC, providing an irrevocable letter of credit. The loan and grant are in a development agreement council members are expected to vote on when it holds its regularly scheduled meeting tomorrow night.
City Council was to consider the interim financing last summer but tabled the ordinance. “The project didn’t have its final financing in place,” said David Bozanich, city finance director. “We believe it’s close enough that we’re offering these incentives contingent upon them spending the approximately $15 million to renovate the building,” he said.
The building is being converted for use as extended stay and traditional apartments. Wick Properties is a corporation formed for the project by NYO Property Group. In 2012, Dominic Marchionda, a principal of NYO Property Group and its CEO, purchased the building for $150,000. NYO is accepting pre-leasing agreements with tenants in the Wick Tower for an anticipated opening next year, according to its website.
Marchionda successfully redeveloped the Erie Terminal Building downtown and developed the Flats at Wick student housing near the Youngstown State University campus.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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