Developers pitch plans for arena, complex
The city will decide in about two weeks which developer is most qualified.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- There is more than one strategy for bringing an arena, conference center and hotel downtown.
Indeed, city officials have three choices to consider over the next two weeks before picking one and starting negotiations with a developer.
One idea is a combination arena-convention center and a hotel. Another option involves building an arena first, then the hotel and conference center afterward. A third choice is a conference center and a hotel with an arena to come later.
City officials spent about six hours Thursday listening to presentations from three developers. Each pitched one of the above options.
Among the officials were Mayor George M. Mc-Kelvey; David Bozanich, finance director; several council members; Jay Williams, community development director; Hunter Morrison, a planning consultant; and two officials from the city's project consultant, Compass Facility Management.
Group to decide
That group will decide in about two weeks which developer is most qualified. Negotiations will then start on reaching a development agreement. The city hopes to reach such a contract by year's end.
Watching presentations is the easy part, McKelvey said. Negotiating a contract is a far more difficult process that will take time, he said.
"We have a tough road ahead of us," McKelvey said.
McKelvey and Bozanich also made clear that officials could turn to another developer if the city and the first company can't reach a deal.
The city had requested proposals for one or more types of buildings on the site between the Market Street and South Avenue bridges. Among the possibilities: a 6,500- to 8,500-seat arena; a convention or conference center; a 200- to 250-room hotel; and a public recreation facility.
Here were the three proposals:
Garfield Traub Development in Dallas proposed the combination arena-conference center.
The building would be at Front and Market streets with a public ice rink attached. The hotel would be next door.
Green space and a park would be along the Mahoning River. Parking would be between the buildings and the green space.
In Laredo, Texas, all that building's seats retract. That opens the entire building to floor space for expositions. The building seats 8,500 to 10,000 people. Separate, smaller meeting rooms flank each side of the arena.
Such a building gives a city sports and convention space without a separate building, said Raymond Garfield Jr., company president.
What drives size
Financing drives the size of an arena-conference center, he said. For example, a building that would generate $1 million a year in operating revenue means about 5,100 fixed seats plus 1,000 to 1,200 temporary seats, he said.
Garfield spent much time explaining complicated financing structures involving the $26.8 million federal grant the city has for the project.
The gist was that using tax-exempt bonds to finance a hotel limits the city's liability. Such an arrangement also overcomes the problem of finding scarce private money to finance hotels, he said.
The Landmark Organization of Austin, Texas, talked generally about the same type of financing, but structures its proposed project differently.
A hotel and conference center could be built alongside an arena, but that element also could wait a while, said Greg Williams, a company vice president.
Landmark is confident an arena could sustain itself financially, so that part of the project could start immediately, he said. In fact, Landmark said it already is 45 to 60 days ahead of the other developers. Its design, construction and management team already have started working together on the Youngstown project, he said.
Landmark already detailed its vision for the project.
The site would feature a 6,500- to 8,500-seat arena along the Mahoning River near the Market Street bridge.
A 45,000-square-foot conference center would be next door. A 250-room Hilton or Doubletree hotel near the South Avenue bridge would connect to the conference center.
The Waterford Group of Waterford, Conn., leaves an arena more as a future development.
Instead, Waterford envisions a $15.7 million conference center covering 70,000 square feet. The space would hold 5,000 people for meetings and 2,500 for banquets.
A $14.25 million, 150-room Marriott hotel would stand nearby.
A conference center and hotel need to be the nucleus for such a development, said Terry Bickhardt, company president. A conference center and hotel that draws visitors from out of town would have a far greater economic impact than an arena that only recycles local money, he said.
An 8,500-seat arena costing about $25 million could be built later, he said.
McKelvey questioned if Waterford's proposed conference center fit under federal guidelines that call for the money to be used in a "convocation/community center." Bickhardt said the building would be large enough to include many events traditionally booked at convocation centers.
Waterford didn't offer a site plan or other details because it didn't want to presume what the city wanted, Bickhardt said.
McKelvey impressed
McKelvey said he was overwhelmed by the professionalism and competence displayed by each developer.
"I could not be more impressed," he said.
A fourth company declined the city's invitation to make a presentation.
MG Financial Services of Carmel, Ind., told the city its proposal stands and there was no need to make a presentation. MG gave the city only a general outline of a financing deal for a 6,500-seat arena.
rgsmith@vindy.com