ARENA PROJECT Talks continue with Ariz. developer

The city has turned to negotiating with partners of the original developer.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city is pursuing a $30 million downtown arena based on a Texas project.
The city's consultant, Compass Facility Management of Ames, Iowa, is comfortable with a $30 million cost estimate, said Law Director John McNally IV. Compass believes the estimate is reasonable for a 5,400-seat arena based on a project in Hidalgo, Texas, he said.
Dodge Arena -- called the Rio Grande Valley Events Center until a recent sponsorship deal -- cost $20 million. The arena seats 5,500 for hockey and 6,800 for concerts.
The arena opened Thursday with a concert by country music singer Alan Jackson. The first hockey game is next Friday.
City officials are talking with the company that built Dodge Area, Global Entertainment Corp. of Phoenix.
Global Entertainment was a partner of FaulknerUSA. FaulknerUSA, of Austin, Texas, was the first developer the city started negotiating with early this year.
Point of contention
Mayor George M. McKelvey has said that FaulknerUSA didn't offer substantial private investment, which became a sticking point. He is firm that the city won't spend more than the remaining $25 million of a federal grant for the project. The city expects the state to provide about $5 million more.
McNally said the city hasn't talked with FaulknerUSA recently. McKelvey deferred comment on negotiations to McNally.
Talks with Global have been productive and are progressing, McNally said. He declined to be more specific.
Downtown Councilman Artis Gillam Sr., D-1st, who toured the Hidalgo arena in August, also has been in talks with Global.
He said Global has the ability to break ground on a project in the spring and finish in fall 2005. That's when the city must finish spending the federal grant.
Gillam said the city is asking Global to hire a local general contractor and local subcontractors. The aim is to have city residents and local workers build as much of the project as possible, he said.
Three agreements needed
McNally said the city must reach three primary contracts for the arena project. A construction contract governs the building of the arena. A management contract involves the day-to-day operations. A development agreement encompasses both those contracts, plus any other items.
The city is negotiating the development agreement with Global Entertainment. Several partners likely would be involved in any deal, however.
Global Entertainment is the developer and also owner of the Central Hockey League. The league would provide a team to be the arena's main tenant.
Global Entertainment owns International Coliseums Co., which builds arenas. International Coliseums built the Hidalgo arena and a $70 million event center in northern Colorado. That project features hockey and rodeo arenas.
It's unclear if International Coliseums would be involved if the city succeeds in mandating a local general contractor.
Global Entertainment also is a partner with Global Spectrum of Philadelphia, which manages arenas. Global Spectrum calls itself the world's second largest manager of public assembly facilities.
Global Spectrum also was an original partner of FaulknerUSA.
rgsmith@vindy.com