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Official demands action on utilities

New mobile steam plant could service downtown next week

YOUNGSTOWN — The city’s law director is demanding SOBE Thermal Energy Systems LLC’s receiver and the Public Utilities Commission of Ohio “immediately resume operation” of the plant that provides utility services to much of downtown, warning Youngstown could take legal action if a resolution isn’t quickly found.

Meanwhile, sources said it is believed a mobile steam plant was ordered Thursday, and between delivery and installation it could be online next week, providing heating, cooling and hot water to SOBE customers.

In a Thursday letter to an attorney representing Reg Martin, SOBE’s court-appointed receiver, and Julian P. Johnson, an assistant Ohio attorney general, city Law Director Lori Shells Simmons insisted she be contacted “within the next 24 hours to discuss how the receiver and the PUCO intends to resume SOBE Thermal’s operations as soon as practicable so that the city may advise its downtown residents and businesses accordingly.”

City officials have been in contact for several days with the PUCO, which is working with Martin to resume utility services to 27 downtown buildings, including city hall, the police department, the fire station and two buildings with 90 residents.

Martin was appointed SOBE’s receiver Friday by Mahoning County Common Pleas Court Judge Anthony Donofrio after the company could provide utility services to downtown customers for only a few more days.

That service ended Tuesday when Wabash Power Equipment Co., which had been renting a mobile steam plant to SOBE for nearly six years, repossessed it because SOBE owes $383,214 in back payments. Wabash’s mobile plant provided the utility services.

Shells Simmons wrote: “The city of Youngstown has already done almost everything in its power — and more — to give the PUCO and receiver time to determine the best possible solution to take over and resume SOBE Thermal’s operations.”

She said, “The receiver is now by statute obligated to determine how SOBE Thermal ‘shall furnish necessary and adequate services.’ The city of Youngstown hereby respectively requests that the receiver and PUCO exercise any and all statutory or equitable power to resume SOBE Thermal’s operations as required by law. As a customer of SOBE Thermal, the city of Youngstown does not have standing to take over operations, but does have standing to pursue any and all legal avenues necessary to compel SOBE Thermal, by way of its receiver, to resume operations. Moreover, the city administration is ready, willing and able to continue discussing possible solutions that are consistent with Ohio law and the city of Youngstown’s charter.”

Mayor Jamael Tito Brown said Thursday that Youngstown demands services from SOBE through the receiver and “we will seek legal action if that’s not happening.”

Matt Schilling, PUCO spokesman, said the commission is “trying to work with all parties to find a short-term and long-term solution. We’re continuing to talk to” the city, Martin and Youngstown State University.

Schilling said conversations have been ongoing with all parties, and he viewed Shells Simmons’ letter as “maybe they want to memorialize their actions.”

YSU was asked to provide utility services to SOBE customers, but efforts to do so failed because of substantial leaks found Wednesday in the old piping system.

John Hyden, YSU’s associate vice president for facilities and support services, said Wednesday the only option he sees is for Martin to rent another mobile steam plant.

Kenneth R. Goldberg, an attorney representing Martin, filed a stay of execution request Tuesday with Donofrio to stop the repossession of the mobile plant by Wabash as it was happening. Magistrate Nicole Butler on Wednesday denied the motion.

SOBE breached a lease agreement with Wabash for the steam plant at its Youngstown facility, 205 North Ave. SOBE signed a lease in November 2019 to use Wabash’s steam plant at $19,500 a month.

A federal judge ruled Jan. 29 in favor of Wabash’s motion for default judgment of $383,214 when SOBE never responded to the case. Wabash then filed May 23 in Mahoning common pleas to repossess and remove the equipment after SOBE refused many demands for the property, according to court documents.

The repossession was delayed a few times since Donofrio granted a default judgment Aug. 21 against SOBE, which didn’t respond to the lawsuit.

The city on Sept. 9 filed a motion to intervene “to ensure the health, safety and welfare of residents and businesses in downtown Youngstown,” and sought a stay of the judgment of at least 30 days. A settlement was reached Sept. 16 for the city to pay $20,000 to Wabash to keep the mobile steam plant at SOBE until Tuesday.

In her letter, Shells Simmons wrote the city “has gone well above its municipal and statutory obligation regarding (the) operation of SOBE” by contacting the attorney general’s office on Aug. 21 that the company “was in danger of being in significant default,” paying Wabash for the extension, coordinating with YSU and working daily with “all relevant parties for the past six weeks. The city of Youngstown is incredibly grateful that, to date, the PUCO has similarly moved with unprecedented swiftness to attempt to intervene in this situation.”

Brown said: “We went way above and beyond our role and responsibilities, and we’re telling the PUCO, ‘Here’s your role and responsibilities. You have a receiver. They need to do their job.'”

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