Builder would get $7M to use riverfront land

Council gave unanimous support to using the whole federal grant for an arena.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- The city now has a plan for using $7 million of a $25 million federal grant to have a private company build an arena downtown.
That doesn't mean such a plan, however, is any more likely than two others: spending $8 million to overhaul the Beeghly Center into a convocation center, or using the entire $25 million on an arena.
The plan merely is one option should Congress expand use of the $25 million beyond just an arena, Mayor George M. McKelvey said Wednesday.
The city has an obligation to review all options before deciding, he said. The city needs to be ready to act once Congress decides what to do with the money, he said.
"We have to be prepared for that," McKelvey said.
The city outlined the $7 million proposal Wednesday to Global Entertainment Corp., Phoenix. The city has been negotiating for months with the company to build an arena downtown.
The city outlined seven incentives it is willing to offer. In exchange, Global would build a $32 million, 5,500-seat arena downtown between the Market Street and South Avenue bridges. The $7 million contribution easily is the biggest incentive.
The proposal lets Global and city officials plan while waiting for Congress to act, said Finance Director David Bozanich.
"We're saying this is one approach that would work," he said. "It's a viable option we're continuing to pursue."
Recapping the project
Spending the entire grant on an arena, as Congress first directed, was the main focus the past few years.
In November, Vindicator management lobbied Ohio's U.S. Sens. George Voinovich and Mike DeWine. The result was an amendment that would give the city flexibility with the money. The funds could be used for other downtown revitalization and economic development efforts. Congress has yet to approve that amendment.
Since then, McKelvey has become interested in setting aside some money to help the private sector build an arena. The rest would be used for downtown improvements. Wednesday's proposal is a reflection of that approach.
Last week, another option emerged. City and Youngstown State University officials talked about spending $8 million of the federal grant to convert Beeghly Center into a convocation center.
McKelvey said he looks forward to a council finance committee meeting soon where all options can be discussed.
McKelvey has made it clear he won't make any deal on an arena until the grant's status becomes clearer.
Gillam's stance
Meanwhile, Artis Gillam Sr., D-1st, continued pressing his case Wednesday to spend the entire grant on an arena.
Gillam asked for -- and received -- unanimous backing from council on a resolution supporting the use of the entire federal grant to build an arena.
Gillam, whose ward includes downtown, said he isn't interested in the partial city financing or YSU plans. The best option for the city and its residents is an arena with little debt service, he said.
McKelvey said telling a private developer the city will turn over all its grant money is bad negotiating.
Gillam also bristled at a suggestion by Richard Atkinson, R-3rd, finance committee chairman. Atkinson said some council discussion of arena financial issues might be behind closed doors in executive session.
Gillam said council and the public largely have been shut out of the process. All talk should be public, he said. McKelvey said any closed-door sessions will be to negotiate the best deal for taxpayers, not to shut people out.
rgsmith@vindy.com