YOUNGSTOWN Mayor: Options exist despite arena talks

The city and an Austin, Texas, developer are talking.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Mayor George M. McKelvey doesn't know what will be built. He doesn't know who will build it.
He will guarantee one thing, however: Something will be under construction downtown by spring 2004 that's associated with the civic center project.
That leaves time to reach a deal for an arena, with or without a developer, or to make other plans to spend the money, McKelvey said Thursday.
The city continues extended talks about an arena with a developer, FaulknerUSA of Austin, Texas. The city hasn't cut off negotiations, because talks are progressing, he said. Law Director John McNally IV and city consultants Hunter Morrison and Atty. Craig Miller recently traveled to Austin trying to spur a deal.
Alternatives include turning to another developer or start making other plans.
Costs vs. revenues
The city and developer keep trying to bring project costs and revenues in line. They need to reach a deal that makes financial sense to both, negotiators say. So far, the project's costs outweigh the revenue for FaulknerUSA, said Finance Director David Bozanich. The company doesn't see a solid enough project to lure investors despite the city's $26 million federal grant, he said.
Talks are expected to take a while longer. McKelvey said he expects each side will conclude talks whether there's a deal or not by the end of summer.
No developer
Meanwhile, the city recently started thinking about an arena without using a developer.
McKelvey has added engineering and construction companies to the city's "development team." The group is hashing over the possibilities while still talking with FaulknerUSA. The city may find that it can make an arena project work without FaulknerUSA or another developer, McKelvey said.
Nonetheless, all options remain despite continuing focus on an arena, McKelvey said. The city soon will start what he calls "parallel track" talks to build something besides an arena.
"I think that will start very quickly," McKelvey said.
Informal public debate already is happening, and a formal process isn't too far away, he said. A park with an amphitheater is one idea. Some variation of a community center with athletic fields is another. Many other ideas will be entertained if an arena doesn't materialize, McKelvey said.
"No idea will be a bad idea," he said.
Sel-sufficiency
The hard part will be finding a way to build something that is financially self-sufficient, he said. McKelvey has pledged that any project will not have ongoing city financial support.
The city must be ready to build something by March or April 2004, he said. The city must substantially spend the government's $26 million grant by the September 2005 deadline or lose money.
The spring 2004 mark gives the city about 20 months to build whatever is decided upon, which McKelvey said is adequate. The period encompasses the 2004 and 2005 construction seasons.
rgsmith@vindy.com