YOUNGSTOWN — After re-evaluating the project, the city’s board of control approved a $6,979,038 contract for the remediation and partial demolition of 20 Federal Place with work expected to start in mid-April.

The work to be done by Daniel A. Terreri & Sons Inc., a Youngstown company, will take up to 225 days from the start of the project to be finished, said Charles Shasho, the city’s deputy director of public works.

The board of control Thursday unanimously voted to award the contract to Terreri.

The city opened two proposals Feb. 3 for the project with Terreri’s bid lower than Murphy Contracting Co., also of Youngstown.

But an issue existed with the cost of one of the four additional options from Terreri for the project being considerably higher than the city’s estimate.

Asked about the delay in awarding the contract, Shasho said, “Re-evaluating the scope of the project took time. We wanted to make sure it’s the project we wanted.”

The city decided to include two additional projects and not do the other two, Shasho said. One of the additional projects was the one well above the city’s estimate.

The two add-ons being done are filling in the basement that is below the sidewalk in front of the building at 20 W. Federal St. and demolishing 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 city chose to not demolish an attached building on North Phelps Street or to do work to the building’s mechanical room and remove steam equipment.

The demolition of the building on North Phelps Street was the big issue.

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.

When the bids were opened, a Terreri representative said the cost for that add-on was high because if that work is done without doing the other demolition project — the buildings are connected — it increases the expense.

“We decided not to award it,” Shasho said. “We don’t want to demolish it right now. The price was too high because it becomes ticklish demolition.”

That 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.

Regarding the mechanic room addition, Shasho said, “The work isn’t needed anymore so we decided not to do that.”

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 its money for architectural designs, project management and costs related to seeking additional grants for the building.

The project “should go smoothly,” Shasho said. “We’re looking forward to finally getting it done.”

The future of the building after this work is done is 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 if 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, that interest has diminished.

“Hopefully by mid to late fall, we’ll be able to pitch the building to a new group of investors,” city Finance Director Kyle Miasek said. “If you have more in your arsenal, you can have another group look at the building.”

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 several decades.

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