Port Authority Absorbs Mahoning River Initiative
VIENNA TOWNSHIP, Ohio – The Western Reserve Port Authority will absorb the Mahoning River Corridor Initiative into its economic development arm, following a vote Wednesday by the port authority board.
At their final business meeting for the year, board members also voted to issue $1.075 million in development revenue bonds and reacquire the former Davis air cargo building from its current occupant, Pillar Partners, and approved a six-month lease with Pillar, also known as Millwood Corp., as it pursues an operator for the building, which is located at Youngstown-Warren Regional Airport.
Earlier this year, the port authority entered into a joint venture agreement with the the Mahoning River Corridor Initiative, which focuses on redevelopment of brownfield sites along the Mahoning River in Mahoning and Trumbull counties. Among the objectives of that joint venture was for the two organizations was to develop a “collaborative partnership in economic development,” said Rose Ann DeLeon, executive director of the port authority.
The Mahoning River Corridor Mayors Association, comprised of cities and villages along the river corridor, has been the “driving force behind MRCI and is anxious to ensure the sustainability of the organization into the future,” DeLeon continued. “The mayors association and other supporting members of MRCI and the economic development staff believe that the synergies of economic development missions between the port and MRCI make the port authority the logical organization to assume” the initiative, she said.
The mayors association has been able to “break up the parochialism” and its members have been able to coordinate with each other, said McDonald Village Mayor Glenn Holmes, chairman of the association.
“We all have something in common. We have brownfields along the river,” he remarked. “We need to be proactive in marketing the brownfields and get them revitalized so we can replace them with upcoming industry. The port authority is a good vehicle for doing that.”
The port authority will transition MRCI and its website from Youngstown State University’s Center for Urban and Regional Studies, where it is now housed, into the economic development group. The port authority will also retain MRCI’s manager, Dan Mamula, as a consultant for one year at $2,350 per month beginning April 1.
YSU will continue to provide any office space that may be needed “from time to time” and support the initiative with mapping services, DeLeon said.
The port authority’s purchase of the air cargo building will take place effective Jan. 1, when Millwood’s six-month lease begins. Millwood purchased the 24,000-square-foot building from the port authority in 2009.
“Basically we’re giving this time because we have many pieces to fall into place,” said the port authority’s attorney, Dan Keating. The $6,000 monthly rent “should be sufficient to service the debt” from the bonds, he said.
Board member Scott Lewis, who came under scrutiny over the 2009 deal because his real estate company, Edward J. Lewis Inc., handled the air cargo building, excused himself from Wednesday’s discussions and the votes.
Efforts are continuing to find an aviation-related partner to operate the building and Dan Dickten, aviation director at Youngstown-Warren Regional Airport, said the port authority is “somewhat close” to having one in place.
“We’ve got two good possibilities we’re working with,” Dickten related. In addition to Aviation Facilities Co., a logistics/aviation/air cargo firm based at Washington’s Dulles International Airport, Dickten said another firm, Total Airport Services Inc., Chicago, has expressed interest in the building.
Dickten also reported that Allegiant Air said Nov. 30 it is “very optimistic” about additional destinations at Youngstown. It also plans to increase frequency for its service to Orlando and St. Petersburg, which will increase from two flights per week to three to four flights per week serving Youngstown-Warren during peak periods.
Allegiant launched service to Las Vegas from Plattsburg, N.Y. Wednesday. “Load factors are real high. It looks like it’s going to be a real popular service,” Dickten said. “Based on its success we’re hoping to see some Vegas service announced here sooner rather than later.”
Copyright 2012 The Business Journal, Youngstown, Ohio.
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