City, tenant ready for eviction showdown

Court hears 20 Federal Place last occupant’s case

YOUNGSTOWN -- A city attorney argued in court that Carrier Services Group, the last remaining tenant at the Youngstown-owned 20 Federal Place, should be evicted because it doesn't have a valid lease -- something the company disputes.

Magistrate Dennis J. Sarisky of Mahoning County Common Pleas Court oversaw a Tuesday hearing that lasted two hours and 15 minutes between the city and Carrier Services Group, a technology company that has fiber optic wires and equipment at 20 Federal Place.

The downtown building is undergoing a $7 million remediation and partial demolition project that started April 17. The project will take up to 225 days to finish.

Adam Buente, a Youngstown senior assistant law director, argued that Carrier hasn't had a valid lease since Sept. 30, 2020, when an old contract expired, and the company failed to renew on a timely basis.

But Stephen J. Pruneski, Carrier's attorney, said the city accepted payments from the company for renewals for 2021 and 2022.

Carrier got an invoice last December, dated two months prior, from the city and wrote a check to lease space at the building for 2023 in January, Pruneski said. When that wasn't cashed, another check was sent, he said. That also wasn't cashed.

Neither check was returned by the city, he said.

City officials haven't informed Carrier about a lease nonrenewal, Pruneski said.

"They have no authority to proceed with eviction," he said.

The city placed a three-day eviction notice on Carrier's door at 20 Federal Place on Jan. 3, Buente said.

Lee Hartman, its CEO, testified Tuesday he didn't see the notice until a few weeks ago with Pruneski saying more than a notice on the door is needed to invalidate what he said is a valid lease.

The city filed a lawsuit May 11 to have the court enforce the eviction.

SIMILAR CASE

Buente said the case is similar to one in which a Subway sandwich shop franchisee refused to leave 20 Federal Place contending it had a long-term lease at the building.

In the Subway case, the lease renewal was approved by Kevin Flinn, the city's buildings and grounds commissioner.

Magistrate Timothy G. Welsh of common pleas court ruled Feb. 21 in favor of the city saying only its board of control can sign leases. The owners appealed, and the city settled the lawsuit for $25,000.

In the Carrier case, a lease extension was signed by Joyce Gorsky, who used to assist the city as a leasing agent at 20 Federal Place as an independent contractor.

The board of control never approved a lease extension for Carrier, Finance Director Kyle Miasek, a board member, testified Tuesday.

Sarisky didn't indicate when he would have a decision.

Buente said allowing Carrier to remain would "risk significant delay" for the 20 Federal Place project.

There were 19 tenants, taking up about 20 percent of the 332,000-square-foot building, before eviction notices were sent in July. Some of the tenants received extensions.

Many of the former 20 Federal Place tenants found other locations while some went out of business.

LANDMARK BUILDING

The city received a $6.96 million Ohio Brownfield Remediation grant, announced June 2022, for the remediation and partial demolition at the downtown building at 20 W. Federal St.

The city provided $2.32 million of its own money for the project, largely for architectural designs, project management and costs related to trying to seek additional grants for the building.

To date, the project hasn't been approved for any other grants.

What the city will do with the building after the remediation and partial demolition project is finished is far from certain.

The city had sought a redeveloper for the downtown building, but let an agreement with one expire.

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.