DOWNTOWN YOUNGSTOWN City picks arena-hotel developer

Landmark provided the most private investment and the strongest development team, the city said.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- City officials have picked Landmark Organization of Austin, Texas, to build a proposed downtown arena, convention center and hotel.
Landmark is deemed the most qualified among three developers, said David Bozanich, city finance director. Negotiations on a development contract with Landmark for the estimated $70 million project will start within 10 days, he said.
A press conference was scheduled for this afternoon to announce the decision.
"This is a significant go-forward step," Bozanich said. "We're excited. We're at the point now, we can make this happen."
Mayor George M. McKelvey cautioned that the contract is the most critical stage of the project. The goal is to create a successful public-private partnership that protects taxpayers from any liability, he said.
"That really will determine the future of the project," McKelvey said. "We've gone 90 yards. The last 10 yards will be the toughest. This is hard work."
The city wants to reach a deal by year's end, but won't rush negotiations, McKelvey said. The schedule is tight, but a contract is possible in just eight weeks, Bozanich said.
Unanimous choice
Landmark was the unanimous choice among city officials, council members and the city's consultant, Compass Facility Management, McKelvey and Bozanich said.
Compass gave Landmark top marks in all the categories used to analyze written and oral presentations.
Garfield Traub Development of Dallas was ranked second. Waterford Group of Waterford, Conn., was ranked third. The city would turn to Garfield Traub if it were unable to reach a deal with Landmark.
Landmark offered significantly more private investment in the project than the others, Bozanich said.
The company is pitching a 6,500- to 8,500-seat arena along the Mahoning River at the project site between the South Avenue and Market Street bridges. There also would be a 30,000-square-foot conference center next door and a 250-room Hilton or Doubletree hotel connected to the conference center.
Landmark proposes putting the $26.8 million federal grant the city holds for the project toward the arena. Private funds would go into building the convention center and hotel.
"We are very excited about the private component of this project," Bozanich said.
Landmark also had the strongest development team and understanding of what the city wants, he said. Bozanich estimates the company already has spent $100,000 working on the project.
Partners
Among the company's partners are Global Spectrum, which calls itself the world's second-largest manager and event development company for public assembly facilities. Global Spectrum would provide the main tenant because it owns the entire Central Hockey League. Other partners include Hilton Hotels and US Bancorp, big names in hotels and financing.
Items to be negotiated include:
* How the city provides its funding, what the funding is for, and tax breaks.
* How much private investment Landmark must provide.
* Timelines on each project.
* City resident employment in the new buildings.
* Who pays for utilities and how, including roads, sewer and water lines.
* How profits are divided between Landmark and the city.
The city's Community Development Agency and the federal department of Housing and Urban Development each will review whatever deal is reached.
City council then must authorize the board of control to award a contract. The control board actually awards the contract.
rgsmith@vindy.com