City Council Authorized $2 million Loan Controled By the Board
City council gives $350,000 for water utility expenses to the developer of the Erie Terminal and authorized the board of control to loan $2 million. U.S. Campus Suites of Poland is working on an $8.4 million project to build a 65-bed apartment complex with a deli, coffee shop, pub on the first floor on the vacant downtown industrial structure. Rental housing on the building’s upper five floors will be targeted toward young professionals as well as upperclassmen and Youngstown State University graduate students.
After Wednesday’s vote, Annie Gillam, Councilwoman said “It’s one more piece to the puzzle of downtown.” U.S. Campus Suites must receive a $2 million irrevocable letter of credit from an accredited lending institution under conditions of the city loan. The city would receive the money borrowed from that bank If the company defaults on the loan. The company would borrow the $2 million from the city for up to 12 months with a 0.25 percent interest rate.
in 2009, U.S. Campus Suites borrowed from the city for build 114-bed Flats at Wick student-housing complex near YSU about $2 million. The company repaid the $2 million’s loan in ten months. After the project is finished next year, U.S. Campus Suites will get $3.22 million in state and federal historic-preservation money.
