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City officials decry ‘deplorable’ shape of downtown high-rise

YOUNGSTOWN — Conditions at the downtown International Towers apartment building are “deplorable” with numerous criminal issues and poor living conditions, including the discovery last July of a body that had deteriorated so badly that the face liquified, two city officials said.

The problems were publicly discussed Wednesday when Kelli Way, an International Towers tenant, told city council about problems at the 175-unit building at 25 Market St. on Central Square.

Law Director Jeff Limbian and Councilman Julius Oliver, D-1st Ward, said they have been aware of the issues and contacted Millennia Housing Management Ltd., the Cleveland company that owns the building, to resolve them.

Oliver said a Millennia official told him the company was coming the week of Jan. 30 to do a complete inspection of the building and make the necessary improvements.

Millennia officials couldn’t be reached late Wednesday to comment.

Millennia purchased the 42-year-old building in 2009 for $4.9 million and made about $8 million in improvements in 2017.

Millennia has more than 30,000 housing units in 26 states, according to its website.

International Towers houses low-income seniors and those with disabilities.

Limbian said crimes such as assaults and drug use have occurred at the building.

“People are living in deplorable conditions in that building,” he said. “It’s absolutely appalling and the owners haven’t done anything about it.”

Limbian provided a police report from last July about a 51-year-old woman who had been dead for so long in her International Towers apartment that her body was “bloated and her face had liquified onto the floor.” No foul play was suspected by police.

Oliver, whose ward includes the building, said: “It’s deplorable. It’s making it hard for people in that building to have a good quality of life.”

He wanted the city to look at trying to stop federal subsidies from going to International Towers and for tenants to put their rent in escrow until the issues are resolved. But Oliver said he is hopeful that the inspection in a couple of weeks will address and resolve the problems.

“I wanted to declare the building a nuisance and shut it down, but (Millennia) is going to fix everything and improve the building,” Oliver said. “We’re serious about applying pressure.”

In addition to criminal activity, windows leak and the heating and air conditioning system doesn’t work, he said.

“It’s been going on for years,” Oliver said.

HOTEL DEBT

City council approved legislation Wednesday to create a mechanism for the owner of the downtown DoubleTree by Hilton hotel to refinance its bank debt through a program that allows it to pay what is owed over 25 years from property taxes for making energy-efficient improvements.

The legislation creates an Energy Special Improvement District, which allows the hotel’s debt to be transferred to payments through property taxes.

The hotel is owned by Youngstown Stambaugh Hotel LLC, which is run by Pan Brothers, a New York City company.

Also, Dominic Marchionda of Poland, a former downtown property developer, is listed as the corporation’s statutory agent on business documents on file with the Ohio secretary of state.

The owners of the hotel at 44 E. Federal St. owe an estimated $30 million in loans for the building. The hotel opened in May 2018 at the Stambaugh Building and was the first downtown hotel in Youngstown since 1974.

The company has refinanced its bank loans a number of times and also owes $700,000 to the city for a loan it was given in 2016 without repaying any of it.

Under this program, created by the state, Youngstown Stambaugh Hotel would be able to convert its loan into Property Assessed Clean Energy financing and pay back the money owed over a 25-year period.

Council’s legislation allows the hotel owners to borrow up to $30,706,510.50 with a lending institution through the PACE program paying off the loan and getting the repaid over 25 years. If the full $30,706,510 is borrowed, Youngstown Stambaugh would pay $614,130.21 to the PACE lender twice a year for 25 years.

The city will create the ESID board as a pass-through for the payments and wouldn’t be responsible if the hotel owner defaults, said city Finance Director Kyle Miasek. The program gives the company a longer period of time to repay the loan, he said.

The hotel owner has spent $11,764,055 on energy-efficiency improvements, according to council legislation.

Oliver, who has the building in his ward, said: “This is the perfect answer for their troubled financial problems. They’re dealing with the (state) government so no concerns. I don’t think anyone wants to lose their shirt to the government. It all comes together.”

Other property owners who qualify can join the ESID once it’s established, Miasek said.

Councilwoman Samantha Turner, D-3rd Ward, who said a day earlier that she wanted to talk further about the legislation before a vote, joined the six other council members Wednesday in supporting it.

“I voted in favor of creating the district,” she said. “I didn’t vote for the hotel at all. I voted for the district so others can move forward on the energy district.”

By backing the legislation, Turner actually did vote to help the hotel.

ARP FUNDING

Also Wednesday, council decided to approve $1.5 million in American Rescue Plan funding for the demolition, abatement of asbestos and site clearance of structures. That should pay for work to take down 100 to 125 vacant houses.

Council also agreed to spend $50,000 in ARP money for Direction Home of Eastern Ohio to provide technical assistance to seniors using technology.

But it referred back to its finance committee a $95,040 ARP funding request to Pecchia Communications for communications planning, counsel, writing, editing and media relations related to ARP.

Youngstown received $82,775,370 in ARP funding and has allocated about half of it, though most hasn’t been spent.

dskolnick@vindy.com

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