YOUNGSTOWN, Ohio – City Council next week will consider legislation that would provide tax incentives and enable the use of a unique financing program to help a major downtown renovation project.
The owners of the former Mahoning Bank Building – 22 Market Street Ohio LLC – have filed a petition for special assessments through the Youngstown Energy Special Improvement District to help finance $5.5 million in energy upgrades to the landmark building.
Council is expected to consider the legislation at its next meeting Jan. 7.
Under the plan, lenders would provide $5.5 million to the project owners that will be used specifically for a new heating, ventilation and air conditioning system; new efficient lighting; building envelope designs; efficient hot water system; and other related energy infrastructure improvements.
Mahoning County would then levy special assessments of $281,872.49 – including fees and interest – twice each year to the building owner over a 30-year period. The building owner would pay the installments to the county, then the county would pass the payments through the city of Youngstown. The city then would issue the payment to the lenders. There are no city funds involved in the financing plan.
Total assessment costs over the 30-year period are calculated at $17,272,349.40. The first assessment payment is due approximately Jan. 1, 2027, and would continue semi-annually until July 31, 2056.
It is a similar plan that was used to finance energy upgrades to the Stambaugh Building and the DoubleTree by Hilton Youngstown Downtown more than two years ago.
The developers plan to reserve the first four floors of the building for commercial space and convert the upper nine floors into residential units. Most of the residential levels would have a studio apartment, three two-bedroom units and four one-bedroom spaces.
Huntington Bank currently occupies newly renovated space on the building’s ground floor.
In November, Economic Development Director Stephanie Gilchrist told members of City Council’s Community Planning and Economic Development Committee that the entire cost of the project is approximately $18.5 million.
She noted then that the owners were approximately $2.5 million short of what they needed to finish the project and had requested help from the city.
Gilchrist said work on the first three floors is mostly finished, and the balance of work will be concentrated on the next seven floors. She estimates that the entire project could be finished between 12 and 18 months should the funding stack be secured.
At its next meeting, City Council will also consider legislation that would enable the city’s Board of Control to approve a 100% tax abatement over 15 years that would offset real estate taxes on new valuation after the project is completed.
The building was constructed in 1911 and designed by renowned Detroit architect Albert Kahn. It is listed on the National Register of Historic Places.