Published: Saturday, August 19, 2006
Suit delays transfer of ownership
The city wants to turn the properties into a parking lot.
YOUNGSTOWN — A request for a downtown property redevelopment agency to turn over ownership of two dilapidated West Federal Street buildings to the city for demolition is on hold because of a lawsuit filed by a company that wants the structures.
Jan Seidler, president of the Youngstown Central Area Community Improvement Corp., said the agency's board of directors were likely to give the two buildings to the city at its Aug. 29 meeting. But until the lawsuit is resolved, the CIC won't transfer ownership of the Armed Forces Building and the State Theater, he said.
"Hopefully the delay won't be long, but it's up to the court's discretion as far as moving this along," Seidler said.
City officials asked the CIC in June to give them the two buildings so they could be demolished and turned into a parking lot for city water and wastewater customers.
A property appraisal of the two buildings, just west of Hazel Street, by the CIC shows the structures are worthless. But the adjacent Wells Building, also owned by the CIC, is appraised at $24,000, and with a financial investment, it is considered a prime development location in the city's downtown.
Demolition cost
Asbestos abatement at the Armed Forces Building and the State Theater would cost about $750,000, but city Finance Director David Bozanich said in June that the city could afford the demolition even if the cost rose to $1.5 million.
If the CIC could find a company that would invest at least $2.5 million in the Wells Building and employ at least 50, Bozanich said the city could give the parking lot to the CIC or that company at no cost.
CIC officials said last month the agency was working out the details of transferring the two properties to the city.
Also last month, P&P Real Estate Development LLC, which once had an exclusivity agreement with the CIC for the three buildings, filed a lawsuit against the agency and the city.
P&P's suit calls for the CIC to give the buildings to the city and then require the city to give the company the structures.
The CIC board voted in March to no longer give P&P exclusivity for the buildings because it couldn't guarantee it would meet a CIC-imposed deadline of April to move ahead with development plans.
What P&P officials said
P&P had the exclusivity of the three buildings for more than two years. P&P officials said some CIC members were too demanding and kept putting up road blocks to stop the project.
"Because the city is part of the lawsuit, and it involves the CIC giving the city two of the buildings, we can't move on the plans," Seidler said.
Even with the lawsuit causing a delay, city council approved three ordinances Wednesday authorizing the board of control to:
Negotiate with the CIC to obtain the buildings.
To solicit professional engineering services and enter into a contract for environmental abatement and demolition of the buildings.
To advertise for bids and enter a contract for demolition of the buildings and construction of a parking lot there.
Mayor Jay Williams, who co-sponsored the three ordinances with Councilman Artis Gillam Sr., D-1st, is aware the lawsuit could delay the land transfer to the city. But the mayor wants the city to be ready to move ahead with the proposed project when it obtains control over the buildings.
More Stories from Tue, Aug 22, 2006
- Refuse to succumb, mayor says
- Chevy Centre deficit at least $80,000
- Ryan nets $50G to battle pupil truancy
- Park-Porter renovation costs cause clash
- Cash needed for band instruments
- 58 vie to become township police chief
- Population decreases, but housing number increases
- Gains to file motion in battle over Oakhill buy
from vindyJOBS.com
