The sale of the Erie Terminal in downtown Youngstown is delayed a month, but a major renovation project of the historic building is on track to be done by the end of the year.
Louis Frangos of Cleveland, a real-estate developer who owns several properties in the city’s downtown, was to sell the building on West Commerce Street last month to Dominic Marchionda of Poland.
Marchionda’s company, US Campus Suites LLC, built the $8 million, 114-bed Flats at Wick student-housing complex off of Madison Avenue and Elm Street near Youngstown State University.
The two sides agreed to extend the purchase date until Jan. 31 because of “last-minute” minor paperwork that needs to be finalized, Frangos said Thursday.
“We still expect it to happen,” Frangos said of the sale.
Marchionda couldn’t be reached Thursday by The Vindicator to comment.
Marchionda said in late November that he plans to spend $7 million to $7.5 million to turn Erie into a 60-bed apartment complex for YSU graduate students and upperclassmen as well as young professionals by the end of the year. Also, Marchionda wants to use a portion of the building for retail space.
City Finance Director David Bozanich and Sarah Lown, the city’s development incentive director, who have discussed the project with Marchionda, said Thursday that the work to Erie is still scheduled to be done by the end of the year.
Asbestos also needs to be removed from the building, Bozanich said.
The city’s board of control hired the Howland Company LLC of Youngstown for $5,995 Thursday to do an asbestos survey of the property.
“There is significant asbestos remediation needed,” Bozanich said.
The estimate is $500,000 for the cleanup, he said.
The board of control, of which Bozanich is a member, hired Brownfield Restoration Group LLC of Canandaigua, N.Y., for $11,000 in September to apply for money from the Clean Ohio state program for the clean-up work at Erie.
The Erie project is to receive $3.22 million in state and federal historic preservation money. The project has to be done by October 2012 or it will lose that historic preservation money, Lown said.
Lown said Thursday the Clean Ohio program moves so slowly that it’s unlikely the state would award money to clean up Erie before the work is done.
The city is discussing a financial incentive proposal with Marchionda to help offset some of the cost of the Erie project, Bozanich said.
Frangos purchased the vacant Erie Terminal from the city in June 2007 for $375,000.
Frangos originally had planned to turn the building into apartments, but with the struggling housing market, he canceled that project.
Frangos and Marchionda have declined to discuss the sale amount.
Frangos said he will make a profit on the building. Marchionda has said he paid “a little more for Erie than I wanted” because he coveted the property, which is situated between YSU and downtown.