Initiative Committee OKs $200K for 2 Projects
YOUNGSTOWN, Ohio – A city incentive panel approved $200,000 to assist a pair of projects, including Strollo Architects' planned $4.3 million rehabilitation of the Wells Building downtown.
The Wells Building rehabilitation and a $964,544 construction project at Steel Forming Inc., doing business as Commercial Metal Forming, each were approved for a $100,000 subordinated loan that will convert to a grant if employment and investment commitments are met. The Youngstown Initiative Committee approved the incentives at its meeting Thursday morning.
Wells Associated Renaissance Partners, a partnership formed by Strollo Architects, will develop and manage the project. The architectural firm , how located at 20 Federal Place, will occupy the first floor of the building and part of the lower level, while the remaining floors will be developed as 12 apartments targeted to professionals working for companies in downtown’s Tech Block.
Strollo Architects expects to add five employees over the next three years as a result of to the project, including a site manager for the rehabilitated building, Tom DeAngelo, coordinator in the city’s economic development office, told the committee.
Gregg Strollo, president and principal of the firm, told the committee that he expects to finalize financing on the project within 60 days. His firm is working with First National Bank, he noted..
Strollo is also working with state and federal officials on finalizing the use of historic tax credits to help finance the project. A deadline related to use of the state tax credits would have required Strollo to be “fully engaged” by midmonth but an unrelated lawsuit in New Jersey has some of the tax credit investors “sitting on the sidelines” and putting off some investments.
“We’ve got a lot of interest and the state has recognized this and they’re allowing us to push it into next year for completion, so we’ll be done by probably summer-fall of 2014,” Strollo said.
In response to a question by 1st Ward Councilwoman Annie Gillam regarding hiring of city residents, Strollo noted that his company has offered a scholarship for students interested in pursuing architecture and has conducted a mentorship program in Youngstown City Schools. “It’s easier for us to recruit people from the area to come, so certainly we’re interested in hiring people from Youngstown,” he said.
City Council approved an incentive package last month for the project, which includes a 12-month, $2 million float loan at ¼%, a $520,000 water/wastewater grant, potential funds to be awarded through the Youngstown Initiative Program and any eligible tax incentives available through the Community Reinvestment Area Program.
Steel Forming Inc./Commercial Metal Forming, located at 1775 Logan Ave., plans to move forward as soon as funds are approved by the Board of Control on construction of 5,000 square feet of office space in a parking lot it shares with Parker Hannifin, which plans to demolish the building where its offices are housed now.
Although Parker has not provided a firm date for the start of demolition, Steel Forming/Commercial Metal will move its offices into the Parker building’s conference room area this month while construction commences on the new building, Rich Watkins, chief financial officer, told the committee members. “We’re going to move literally across an alley on the same property,” he said.
The company manufactures tank heads and accessories and other metal components. Completion of the building is slated for March 1, 2014.
The project will retain 22 corporate and operations positions, DeAngelo told the committee.
Both incentives require Board of Control approval.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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