YOUNGSTOWN, Ohio (WKBN) – A Youngstown State University student housing facility will soon be up for auction.
According to the Mahoning County Sheriff Sales list, the Flats at Wick will be a part of Tuesday’s auction. The starting bid will be $3.8 million.
In 2019, creditors filed for foreclosure on the facility due to it being in default of a $5.5 million loan. At the time, it had a balance of $4.7 million plus fees and interest amounting to $5.2 million.
According to the court filing, the loan is in default because the borrower “failed to deposit all rents into the restricted accounts, fund all required reserves, and deposit excess cash as required by the loan agreement.”
Youngstown developer Dominic Marchionda and the Mahoning County Treasurer were named as defendants in the foreclosure filing.
In August of 2020, Marchionda pleaded guilty to four counts of tampering with records as part of a plea deal. Prosecutors say he submitted phony billing records for work done on the Erie Terminal and Flats on Wick projects. He was sentenced to five years of probation and 250 hours of community service.
The facility was listed for sale in 2019, and at one point, YSU was looking to acquire it, but it appears that never happened.
The Sheriff Sale will be held in the basement of the Mahoning County Courthouse in the commissioner’s meeting room. You can find out more about bidding here.