DOWNTOWN YOUNGSTOWN Cities praise company for arena work

While Global Spectrum gets high marks, views on the builder are mixed.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- Xavier Moron doubted the arena that opened in October in his city, Hidalgo, Texas, would succeed.
Four months later, Moron, the city's finance director, believes.
Dodge Arena opened on time. There are lots of events. Seats are full.
It's a striking change in a small border city -- albeit with a large Mexican market nearby -- where the Whataburger Restaurant is the 10th largest employer.
"Unbelievable. Unbelievable. It's just amazing," Moron said. "Now that it's caught on, you about can't get a ticket."
He points to the partnership under Global Entertainment Corp., of Phoenix, that built and operates the 5,500-seat arena.
Global Entertainment owns the Central Hockey League. A CHL team, the Rio Grande Valley Killer Bees, is the arena's main tenant. A subsidiary, International Coliseums Corp., brought together architects, engineers and contractors to build the arena.
A Global Entertainment partner, Global Spectrum of Philadelphia, operates the arena.
Those are the companies negotiating to use the Youngstown's $25 million grant and build a $32 million, 5,500-seat arena downtown.
Moron and others with projects similar to Youngstown's who have worked with Global Spectrum praise the company's performance.
Mixed reviews
Experiences with International Coliseums Corp. are mixed.
The International Coliseums Web site lists three projects: Hidalgo, Larimer County, Colo., and Youngstown.
In Hidalgo, the wrong brick went into a section of the arena but was fixed without much hassle, Moron said. Construction fell behind, but contractors caught up and the building opened on time, he said.
Otherwise, construction under International Coliseums was smooth, he said. On a scale of 100, Moron would give the company a grade of 85 to 90.
Larimer County started working with International Coliseums. The county didn't use the company's services to build the Budweiser Events Center in Loveland, Colo., however.
Larimer County wasn't happy with the company on a few topics, said Frank Lancaster, county manager.
The county had problems with how the company handled marketing and private investment issues, he said. Some financial projections were off, and company officials made a few promises that the county couldn't keep, Lancaster said.
Larimer used one architect that was an International Coliseums partner. The county used a couple other local architects and a local builder, however, to erect the arena.
Praise for Global
Meanwhile, Lancaster and Moron are pleased with Global Spectrum's performance.
"They're easy to work with," Moron said. "So far, I believe it's going good."
Financial projections are being met, he said. Based on the building's early performance, the city should make a nice profit even after repaying money borrowed for the project, he said. The city and developer each borrowed about $10 million to split the cost of the $23 million arena. The Youngstown project would involve little debt.
"There's a lot of money in there," Moron said.
The number of bookings and the types of acts handled by Global Spectrum is impressive, he said.
All suites are sold out, and there is a waiting list to buy one. Tickets costing up to $175 for a March 15 Aerosmith concert sold out in a half-hour last week. The hockey team -- Hidalgo is hardly a normal hockey market -- is filling the arena for most home games.
Entertainment
Lancaster said Larimer County residents also like the entertainment Global Spectrum is booking into the Budweiser arena.
"They seem to know these second-tier markets," he said.
Global Spectrum helped the county secure minor-league professional women's basketball and indoor football in addition to the main tenant, a minor league hockey team, Lancaster said.
Global Spectrum handles problems well, he said. For example, the county and sheriff's deputies were at odds about how much security the arena needed. Global Spectrum brought in its security expert and created a consensus.
"They are just right there to deal with something," Lancaster said.
Global Spectrum managers work well together within their own company, said Fred Safstrom, executive director of the Everett, Wash., Public Facilities District.
The city agency developed the Everett Events Center. Global Spectrum operates the arena.
Managers at the Everett arena consult with their Global Spectrum counterparts to come up with solutions to problems, Safstrom said.
One disappointment
The only disappointment is that Global Spectrum hasn't lured many concerts, he said. Everett officials expected about a dozen shows a year. The arena has had only a couple concerts since it opened in October. Being only about 30 miles north of Seattle is a factor, Safstrom said.
Global Spectrum also operates an arena in Trenton, N.J., that has similarities to the Youngstown project. An operations official at the Mercer County Improvement Authority, which developed the area, also said the agency is pleased with Global Spectrum's work.
Global Spectrum has a solid reputation in the arena management industry, said Don Muret, facilities reporter for Street & amp; Smith's SportsBusiness Journal, a national publication.
"They have an impeccable reputation," he said. "They're extremely reputable."
Besides arena management, Global Spectrum offers a range of services such as concessions, ticketing and marketing. That combination offers buildings in places such as Hidalgo, Loveland and Everett many of the services their arenas need under one provider, Muret said.
"They've got everything covered," he said. "It's like a one-stop shop."
rgsmith@vindy.com