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City Council Approves Acquisition of Phar-Mor Land
YOUNGSTOWN -- City Council has approved the purchase of the land beneath the Phar-Mor Centre downtown. Council voted unanimously at last night's meeting to proceed with the purchase the land only -- not the building itself -- for $850,000.The land was originally owned by the Wick family, who leased the property to the Strouss-Hershberg Co., which in the 1940s assigned the lease to the May Co. During the 1980s, May assigned the lease to the city of Youngstown, which in turn assigned it to Strouss Building Associates. Strouss Building Associates then redeveloped the former Strouss' department store into the Phar-Mor Centre, which served as the corporate headquarters for retail drug chain Phar-Mor Inc. However, Strouss Building Associates defaulted on their lease in 2003, causing the Wick family to sue the May Co., which brought the city into the case since it had assigned the lease to the city.Under the lease agreement, the city was responsible for paying $100,000 a year to the Wick heirs for the land until 2021.The purchase negates any further payment to the Wick family, said Mayor George M. McKelvey. Instead, the debt will be refinanced at a lower interest rate saving the city approximately $30,000 a year. He noted city Finance Director David Bozanich "made another prudent business move. I've got to give a lot of credit to our finance director," he added.The title of the Phar-Mor Centre building is still held by Strouss Business Associates, although Bank One has assumed its mortgage. First Ward Councilman Artis Gillam said the city may pursue additional means of acquiring the building and indicated it could be redeveloped and house future tenants.Earlier this year, an unidentified buyer -- which sources confirmed as the Cafaro Co. of Youngstown -- blocked the city's attempt to acquire the mortgage to the building so it could house the Mahoning County Department of Job and Family Services. The department currently leases space at the McGuffey Mall, which is owned by the Cafaro Co."