Council is being asked by the administration to approve loans equalling 70 percent of state tax credits, at 3 percent interest, to two downtown projects. They are the
Financial problems and national lawsuits related to an
If city council agrees to the loans, which are to be repaid about 18 months after the money is borrowed, it will be easier to leverage those funds to get bank loans, they say.
"Without the city loan, we can't even start construction," Strollo said. After council approval, "we can now get final bank financing."
Strollo's project will cost about
The city would loan
NYO's project cost is
The city would loan
"The project would have not happened or been delayed without the city's help," Marchionda said. "It helps keep the progress growing. Lenders are being difficult with money, so the city's help is the very last piece of the puzzle for us."
NYO, which owns several downtown buildings, has done interior demolition and asbestos abatement to Wick, vacant for about seven years, Marchionda said.
The city loan would be secured by a first-lien position on the state tax credits, Bozanich said.
Both projects are expected to be finished by the end of the year, but repayment would be 18 months after the companies get the city money to give them time to file tax returns and get the state tax credits, Bozanich said.
The loans would come from the city's investment account that is used for various economic-development projects, he said.
"Do we not let these people go forward with about
Also today, council will vote to accept a citizen-initiated charter-amendment proposal to ban fracking in the city and forward it to the
The Youngstown Community Bill of Rights Committee submitted petitions on two separate occasions to the clerk of council with 2,108 signatures. The committee needs 1,164 valid signatures to get on the ballot.
The anti-fracking amendment was rejected twice by city voters in 2013. Supporters of the amendment say they will continue to put the issue on the ballot until it passes.
Opponents say the proposal is unenforceable under state law.
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