Downtown Projects in Line for Financing from City
YOUNGSTOWN, Ohio – The Board of Control this morning will consider an additional $220,000 sewer and waterline grant to aid one downtown developer, just hours after City Council approved a similar grant for $100,000 to assist another project slated for the building that houses the Cedars Lounge.
The agenda for this morning’s meeting -- the first of 2013 -- includes an amendment to the development agreement with Erie Terminal Place LLC, which redeveloped the former train station and office building as residential units for students and young professionals. The amendment would enable the funding for another $220,000 in improvements. The original agreement awarded a $350,000 grant to developer Dominic Marchionda, said T. Sharon Woodberry, economic development director for the city. Marchoinda opened the residential complex last summer.
After Marchionda acquired the property in 2011, “There were some drainage problems at the site” and water backed up in the basement of the building, located at 112 W. Commerce St., requiring a retention wall and plumbing lines that were not part of the project’s original budget, Woodberry explained.
The additional funds were approved by City Council at its Nov. 21 meeting, according to the board's agenda.
Last night, at its first meeting of the year, council approved a development agreement with the Gatta Company LLC to assist with water and wastewater improvements at the Gallagher Building, 131W. Commerce St.
The Gatta Company, which also owns the Federal Building and rehabilitated that property for a new restaurant, retail and residential units, has similar plans for the Gallagher, Woodberry said. Gatta bought the building last year.
“The plan is to have a restaurant on the lower level and the upper levels will be residential with some limited commercial [space] above as well,” Woodberry said. Developer Dominic Gatta III is in discussions with a potential commercial tenant “so that’s all contingent on whether that moves forward or not,” she added.
The Cedars Lounge, a downtown entertainment landmark, will be required to move out of the building to make way for the $3.58 million project.
Woodberry said she does not have any details on a timeline for Cedar’s move but that the developer has informed its owners “of the intended use of the building.” Gatta is in the process of securing financing for the project and as soon as that takes place, likely within the next 30-45 days, Woodberry expects the project to proceed.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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