DEAR EDITOR:

The saga of SOBE calls for bold, innovative action.

First of all, realize that downtown Youngstown benefits from this unique heating system. This is a selling feature to attract businesses to move into downtown Youngstown, with its cost-effective heating system.

The additional benefit of this system is that it melts snow and ice from the sidewalks over its heat transmission pipes.

This system was established and operated as Youngstown Thermal for more than a century as a privately owned utility. However, conditions have changed, with the maintenance costs of its aging infrastructure, plus increasing fuel prices.

During the past few years, it has been purchased by private sector companies twice. They had experienced serious problems, as was reported by The Vindicator repeatedly.

Now we have SOBE, struggling to keep it operating. Apparently this business has severe cash- flow problems, causing them to default on payments to their vendors and essential equipment suppliers. Reportedly, SOBE has even passed checks that were dishonored because of nonsufficient funds, which is a screaming cry for help.

PUCO, the Public Utilities Commission of Ohio, which regulates privately owned public utilities, has gotten involved with this situation, trying to find a workable solution.

Youngstown needs to realize the fact that the days of the old Youngstown Thermal system being a viable and profitable private sector utility are over.

Also, the failure of the old Youngstown Thermal system would be a disaster for downtown businesses, which would then need to invest fortunes into converting their facilities to use other heating systems.

Solving this dilemma requires bold and innovative thinking, which is Mayor Derrick McDowell’s strength.

Youngstown needs to acquire the entire SOBE / Youngstown Thermal infrastructure ASAP and run it as an “Enterprise Fund” city department, as it does with city-provided water and sewer services.

Acquiring this infrastructure should be done by respectful negotiation. SOBE should be compensated well enough to pay all of its debts so all of its equipment suppliers and other creditors are “made whole.”

They do not deserve to lose as a result of dealing with SOBE in good faith. Remember that those businesses will be valuable in the future operation of the old Youngstown Thermal system. It would be unwise to leave them with a bad taste in their mouths.

If SOBE refuses to negotiate in good faith, Youngstown could always use its powers of eminent domain and let the courts decide what would be fair compensation.

The unpaid equipment suppliers and other creditors could then have their lawyers file “Money in Hands of Third Party” actions with the court handling the eminent domain case in order to get paid.

JAMES J. PIRKO

Youngstown