Chill Can’s broken promise to YSU

Photo courtesy of ysu.edu

By Keon Edington and Daniel Shapiro / Jambar Contributors

The Chill Can plant that promised to bring jobs, internships and major advertising to the Mahoning Valley and Youngstown State University, sat vacant on the city’s east side for several years.

After broken agreements left Youngstown residents disappointed, the city officially reclaimed the abandoned Chill Can property. The city acquired the site with a $1.3 million bid last month after it went up for sheriff’s sale.

According to an article published Oct. 15, 2016 in the Tribune Chronicle, the project started with plans to create over 257 jobs at a plant that would “produce the world’s first and only self-chilling beverage can.”

Stephanie Gilchrist, Youngstown’s director of economic development, said although three buildings were constructed, the years continued with no progress on the plant. It was after multiple meetings that city officials decided filing a lawsuit was the best course of action.

“After conversations and back and forth, our law department decided that [a lawsuit] would be the best way for us to try to recoup the investment we made in the community and in that business,” Gilchrist said.

According to an article published in The Vindicator Aug. 13, 2017, former YSU President Jim Tressel and Mitchell Joseph, chairman and CEO of Joseph Company International, talked about the proposed plan and promoted it to the public. Tressel encouraged Joseph to look at the Youngstown area as a possible location for the establishment.

“It captured his imagination,” Tressel was quoted as stating in the article. “When we were sitting and talking about [Youngstown and YSU], you could just feel the emotion of him being back home.”

The project officially moved forward in fall 2016 when the city approved a $1.5 million grant to start the estimated $20 million initiative. Tressel said he planned on an internship program for YSU students at the plant once it became operational.

Plans outlined the construction of four buildings across 21 acres to take place from 2017-18, with the plant becoming fully operational that same year.

According to an article published May 11, 2020 by ProPublica, declining tax dollars and an uptick in unemployment influenced Youngstown’s investment in Joseph’s vision.

“They spent an additional $360,000 to purchase and demolish the homes of roughly a dozen residents who lived within the footprint of the future Chill-Can plant,” reporter Dan O’Brien stated in the article.

With the Chill Can site’s lack of operation, YSU and its athletics department were affected because of unpaid funds.

According to The Jambar archives from Dec. 2, 2022, West Coast Chill, a secondary company of Joseph Company International, also owed YSU athletics $185,000 due to a sponsorship.

“The department began a sponsorship agreement with West Coast Chill, July 1, 2015, where they agreed to pay athletics yearly installments. The company consistently kept up with payments over the first few years and has given YSU athletics $115,000,” Jambar reporter Christopher Gillett stated in the article.

However, YSU athletics said the money promised from the sponsorship has not been paid, according to Ron Strollo, executive director of Intercollegiate Athletics.

“We have not received payment from West Coast Chill,” Strollo said. “The last year of their sponsorship dates back to 2019-20. We do not expect to collect any additional revenue.”

In 2021, Youngstown sued Joseph and his company for $2.8 million after it failed to fulfill its agreement of the property’s development.

Now that Youngstown has reobtained the land, Gilchrist said the city has started to discuss plans internally on the property’s future.

“We have a vision that we are working through,” Gilchrist said. “It’s important to create a space that will create jobs.”

Gilchrist proposed a new plan for the property to bring stability, wealth and economic growth for all residents to have fun in the community.

It will take months for the city to finalize ownership. Youngstown is already looking at potential developers, but Gilchrist said they must provide an in-depth business plan before moving forward.
With Youngstown’s financial losses, Gilchrist said the city is cautious of making any new business ventures to avoid another failed project.

“The biggest lesson for us is just making sure that we are a part of every step of the planning process with that developer or business, to make sure that they’re successful and that they have the tools and skills they need to make something happen,” Gilchrist said.

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