YOUNGSTOWN — A magistrate ruled that the city can evict Carrier Services Group, the last remaining tenant at 20 Federal Place, as long as it gives the company 30 days’ notice as required under its expired lease.

The city served the eviction notice to Carrier on Thursday, Law Director Jeff Limbian said.

Magistrate Dennis J. Sarisky of Mahoning County Common Pleas Court also ordered a status conference be scheduled to “address the remaining counts in the complaints of the parties.” That would include if any damages should be awarded.

“We’re very satisfied with the outcome, and we appreciate the court taking such a thorough, analytic approach to the matter,” Limbian said.

Stephen J. Pruneski, Carrier’s attorney, said the company will appeal the decision to Judge Maureen Sweeney, saying, “We’re disappointed with some of the findings. We believe some were improper. We’re a little upset about the filing.”

The city-owned downtown building at 20 W. Federal St. is undergoing a $7 million remediation and partial demolition project that started April 17 and is supposed to be finished late this year.

“We can’t let this project get delayed anymore because of the obstinance of Carrier Services,” Limbian said.

If there is an appeal, Limbian wants Carrier to put up a bond “because the city will have significant delay damages if this project is halted.”

Contractors are working at 20 Federal Place, and are “desperately trying to delay” work in the area near Carrier’s equipment, Limbian said.

“Carrier’s property has been in danger and there is water and dust damage to their property,” he said. “We have urged them to get out to minimize their damages. Damage has been unavoidable. There were barricades put up and then debris hit the barricades. It’s an apocalyptic destruction scene over there.”

Limbian added: “We hope it doesn’t take 30 days (for Carrier to leave). The sooner the better for all concerned including Carrier.”

Pruneski said he believes the city deliberately damaged Carrier’s workplace, including “busting in the door and debris raining down on expensive equipment. They had no right to do that.”

THE RULING

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, Sarisky ruled.

“There is simply no evidence in the record that Carrier’s failure to timely renew its lease was induced by the city’s conduct,” he wrote in his decision.

Sarisky added: “The court finds that the lease was not properly renewed and therefore became a month-to-month tenancy.”

Sarisky declined to immediately evict Carrier from 20 Federal Place, writing the company “did not violate any terms of the lease and is entitled” under the lease “to 30 days prior written notice of the cancellation of the tenancy. (There) is NO evidence that written notice was given to the tenant.”

A three-day eviction notice put on Carrier’s door at 20 Federal Place by the city is immaterial because of the failure to give proper 30 days’ written notice of the lease cancellation, Sarisky wrote.

Pruneski said his client didn’t see that eviction notice until about a month ago.

Pruneski said the city accepted payments from the company for renewals for 2021 and 2022 and that Carrier paid yearly and not monthly.

“They paid rent on an annual basis for nine years,” he said. “They never paid one monthly bill. Our argument is it’s a year-to-year lease and they have to give a year’s notice.”

Those invoices were given to Carrier by Joyce Gorsky, who worked for the city as an independent contract assisting with 20 Federal Place tenants.

Sarisky agreed with Adam Buente, a Youngstown senior assistant law director, and Finance Director Kyle Miasek that only the three-member board of control can renew leases and that wasn’t done with Carrier. That point was argued by Buente, who represented the city as its attorney, at an Aug. 15 hearing and by Miasek, who testified at that hearing.

SIMILAR MATTER

It is similar to a situation the city had with a Subway sandwich shop franchisee that refused to leave 20 Federal Place contending it had a long-term lease there.

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 the board of control signs and renews leases, but the city failed to given proper written notice of eviction under the expired contract.

The Subway owners appealed, and the city settled the lawsuit for $25,000.

The city filed the Carrier lawsuit May 11 after the technology company refused to leave.

Carrier was billed in December for rent for 2023 and its CEO wrote a check in January that wasn’t cashed by the city. He then wrote another check a few months later that also wasn’t cashed. Neither check was returned by the city.

There were 19 tenants, taking up about 20 percent of the 332,000-square-foot building, before eviction notices were sent in July 2022. Some of the tenants received extensions.

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

The city permitted Carrier to remain the longest of any of the tenants, but sought to evict it Jan. 3.

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

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 uncertain.

The city had sought a redeveloper for the downtown building and selected one, but let an agreement 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 unsuccessfully tried to sell the building in the past.