YOUNGSTOWN - A $57 million development deal between the city of Youngstown and Bluelofts Inc to renovate 20 Federal Place was killed in a meeting of the Community Planning and Economic Development Committee Tuesday afternoon.

Renovations for 20 Federal Place were previously reported to begin as early as this fall. The city of Youngstown is now back to the drawing board as officials assess new partnerships for the project.

A public spokesperson for the city told 21 News that after weighing all of the financial aspects of the deal, officials decided that Bluelofts' proposal "was not in the best financial interests of the city at this time." 

"The city didn't see it to be a good idea to hold debt for generations," Youngstown City Councilman Julius Oliver told 21 News.

Millions of dollars in tax credits were also returned to the state Tuesday, following the decision. Councilman Oliver said that the developer had decided that the "tax credits were not for them." Returning these credits will not put the city in any jeopardy of receiving future tax credits, Oliver said.

Councilman Oliver told 21 News that he does foresee a deal happening to renovate 20 Federal Place in the near future. The best thing for the city, the councilman added, is to "put out national feelers to let people know that Youngstown, Ohio is one of the best places to be for both residents and commercial businesses."

The city spokesperson added that "the city remains committed to developing that space" and is currently evaluating other potential partners to develop the downtown Youngstown property.