Exterior view of 20 Federal Place in downtown Youngstown...by R. Michael Semple

YOUNGSTOWN — The city will choose from two proposals, both below the estimated cost, for the remediation and partial demolition of 20 Federal Place.

The public works department opened two proposals Friday that included a base bid and four additional options for work at the city-owned downtown building.

The apparent low bid came from Daniel A. Terreri & Sons Inc., a Youngstown company. Its base bid was $6,418,561. With the four additional options, the cost increased to $7,854,561.

The only other proposal came from Murphy Contracting Co., also of Youngstown, with a base bid of $6,979,038. With the four options, the price goes to $8,036,888.

The city’s estimate was $7,412,000 for the work under the base bid and increased to $9.17 million with the four additions.

Charles Shasho, deputy director of public works, said the two proposals will be reviewed, and he expects the board of control to consider hiring a contractor later this month.

The city received a $6.96 million Ohio Brownfield Remediation grant, announced last June, and is providing $2.32 million of its own money for the work at 20 Federal Place. The city is using part of its money for architectural designs, project management and costs related to seeking additional grants for the building.

The state initially said all work through the grant program had to be finished by this June 30. But because the state awarded the money later than originally scheduled, it extended that deadline to June 30, 2024, said city Finance Director Kyle Miasek.

“It’s like buying a Ferrari and not getting the keys for several months,” Shasho said of the delay.

However, the contract for this project has to be completed in 225 days from the start of the work, Shasho said. If the project begins in March, that would put a completion date around October.

If the city was forced to seek new proposals for the work — and that isn’t anticipated — the job would be finished in 2024, Shasho said.

The city expects to at least include the first additional option when it awards the contract, Shasho said. It could approve all four of the add-ons, he said.

The first addition is to fill in the basement that is below the sidewalk in front of the building at 20 W. Federal St.

The second addition is to demolish a three-story addition at the rear of the building on West Commerce Street that included the former office of the city’s buildings and grounds department, near the old food court.

The third addition is to demolish an attached building on the corner of North Phelps and West Commerce streets. Terreri’s proposal for that work was $775,200, which was higher than the city’s $500,000 estimate and Murphy’s proposal of $272,800.

A Terreri representative at Friday’s bid opening said the cost was high because if that work is done without doing the second demolition — the buildings are connected — it increases the expense.

The city could negotiate down the cost of the third addition if it moves ahead with doing it and the other demolition, Shasho said.

“We hope they would lower the price,” he said. “If not, we could rebid the alternates and keep the base bid.”

The demolition work to the building on North Phelps and West Commerce streets would provide open space nearby that possibly could be used for an elevated patio, Miasek said. The location was going to be used as an entrance to a possible underground parking lot, which may or may not be part of the redevelopment of the structure.

The fourth addition is do work to the building’s mechanical room and remove steam equipment. That work would also help the attached Wick Tower, which isn’t owned by the city.

UNCERTAIN FUTURE

What’s next for the city-owned building after the remediation and partial demolition work is done remains uncertain.

The last estimated cost of redeveloping the downtown building was $96.2 million with Mayor Jamael Tito Brown and Law Director Jeff Limbian questioning how that money could be raised and whether a project of that magnitude is feasible.

That estimate came from National Real Estate Development, a Philadelphia firm with a portfolio of $1 billion in properties that expressed “interest in pursuing an investment” at 20 Federal Place.

However, it appears as though the interest between the city and the firm has diminished.

Desmone Architects, the Pittsburgh architectural firm handling the redevelopment, had a memorandum of understanding with the city to have a “master lease” on the building that expired Dec. 31.

Limbian has long been skeptical of Desmone’s involvement in the project.

The master lease extension is needed because a publicly-owned building can’t apply for state Transformational Mixed-Use Development Program tax credits or state and federal historical preservation credits. That was why the agreement with 20 Federal Place LLC, a business created by Desmone, was made.

Desmone applied for those credits last year, but the applications were rejected by the state.

The mixed-use credits were for $7.4 million, and the historical tax credits were worth about $22 million.

The next historical tax credits application is due shortly, and the mixed-use application’s deadline will be sometime in the spring.

The city purchased the building in November 2004 after Phar-Mor, a national retail store company, went out of business. The property was the Phar-Mor Centre, the company’s corporate headquarters. Before that, it was the flagship location of Strouss’ department store for about a century.

The city has tried unsuccessfully to sell the building in the past.

dskolnick@vindy.com