DOWNTOWN YOUNGSTOWN City keeps developer options open should deal fall through

The scope of the arena project and who will pay for what are unresolved issues.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city hasn't yet approached other developers about a civic center downtown, but officials have talked about alternatives if a deal can't be reached with the chosen developer, the law director said.
Three weeks ago, the city and FaulknerUSA, of Austin, Texas, agreed to indefinitely extend a second contract deadline. The two sides stretched the first deadline, May 15, by 15 days.
Mayor George M. McKelvey talked then about needing a few extra days or weeks. He indicated talks wouldn't extend for months. Negotiations started late last year.
City officials made clear as early as last fall that they might move to their second choice developer if a deal didn't materialize with FaulknerUSA.
In October, the city ranked a combination arena-conference center proposed by Garfield Traub Development of Dallas as its second choice. The city preferred FaulknerUSA's proposed arena, convention center and hotel plan.
McKelvey reiterated the possibility of another developer at the last deadline extension. He said the city could start talking with another company within a few weeks.
He also mentioned other alternatives, such as a community center, for using the city's $26.8 million federal grant meant for the civic center project.
Nonetheless, Law Director John McNally IV and Finance Director David Bozanich say they remain confident the city and FaulknerUSA can reach a deal. McKelvey didn't respond to messages seeking comment.
Terri Dusek, a FaulknerUSA spokeswoman, said the company has the ability to make a public-private partnership work.
Talks continue progressing, which is why the company remains at the table, she said. Such complex projects often take well past six months to negotiate, she said.
"The good news is that everyone is still working on this," Dusek said. "It's not an overnight task. It takes as long as it takes."
Scope of project
The project's scope remains at issue.
Differences remain between what the city wants and what the developer is willing to build.
FaulknerUSA has proposed a roughly $50 million project between the Market Street and South Avenue bridges. The plan includes building a 5,500- to 6,500-seat arena and other development, such as park space along the Mahoning River. A hotel-conference center would be part of a second phase.
Frameworks for contracts are in place if the two sides can agree on a deal, McNally said. Definitive costs, how much money each side will contribute and where the funds will come from remain open issues, however.
"The framework doesn't mean much until you get the numbers in place," McNally said.
McKelvey has explained that any project must generate enough cash flow. Cash flow will persuade FaulknerUSA and its investors to contribute the money needed in addition to the city's $26.8 million, he said. The city continues insisting that it will not contribute more than its federal grant.
Negotiators for both sides have met three to four times a week all month trying to reach a deal, McNally said. More meetings or conference calls are scheduled for this week, he said.