Youngstown arena project takes a giant step forward

Landmark Organization of Austin, Texas, has been selected by the city of Youngstown to develop a downtown arena, convention center and hotel not only because of its qualifications and expertise, but because it is providing about $50 million from the private sector for the project. That sum of money represents 70 percent of the total cost. The rest is coming from the federal government through the city of Youngstown.
When then Congressman James A. Traficant Jr. of Poland, D-17th, secured the $26.8 million grant for the so-called sports arena, he designated the city as the recipient for this one-time gift from Washington. In turn, Mayor George M. McKelvey made it publicly known that he was unwilling to let a developer come in and take control of the project without an infusion of private dollars.
We agreed with the mayor's thinking: the true test of the economic viability of a downtown arena in which professional minor league hockey and arena football would be played is the willingness of investors to reach into their own pockets.
With Landmark's commitment to come up with $50 million for the convention center and the hotel, the expenditure of $25 million for the arena --$1.5 million has been set aside to pay for the land between the Market Street and South Avenue bridges -- is justified.
Negotiations
The city will begin negotiations with the Texas-based developer within 10 days, and while the administration hopes to have a contract signed by year's end, McKelvey won't take pen in hand until he is satisfied that all the city's conditions have been met. Such prudence is warranted.
After all, while Landmark has talked about a 30,000-square-foot conference center and a 250-room Hilton or Doubletree hotel -- the two buildings would be connected -- the only money that's in the bank is the $26.8 million Traficant single-handedly secured for the city. In other words, the 6,500- to 8,500-seat arena along the Mahoning River can be built with no trouble. But without the conference center and the hotel as part of the complex, the arena's viability diminishes.
That's why the city should make sure that Landmark has secured the private funding before it begins spending the federal grant.
There are other issues the mayor believes should be addressed in the contract, such as who would pay for utilities (water and sewer) and who would maintain roads leading into and around the complex.
The city of Youngstown does not have the financial wherewithal to undertake a project that is unlikely to be profitable immediately.
Two months ago, we suggested that the administration ask the prospective developer whether government would be required to play any role in the development of the project or the operation and maintenance of the arena and conference center.
We also wondered what would happen to the arena, conference center and hotel if public support failed to materialize. Who will be responsible for securing the buildings? What assurances will the developer give city residents that the complex will not become another boarded-up eyesore?
The selection of Landmark Organization is a major step forward for this project, but as the mayor points out, there's a lot of hard work left to be done.