Negotiations under way for concessions operator

The city will consider 13 change orders for the arena project.
By DAVID SKOLNICK
VINDICATOR STAFF WRITER
YOUNGSTOWN -- The Youngstown arena's executive director is negotiating with three national companies to run the facility's concessions.
The city sought proposals to have a company install kitchen equipment for the arena's concessions with the intention of having the facility's management company handle that responsibility.
However, the city received only one proposal for the job. That came from Trimark Raygal Inc. of Irvine, Calif. The $1,036,800 proposal from Trimark was opened March 8. The engineer's estimate for the job was $900,000.
The proposal had to be discarded because the city charter doesn't permit the city to award bids for work when it exceeds the engineer's estimate.
Instead of rebidding the job, the city went to an alternate plan to have a company handle the concessions, said Jeff Kossow, the arena's executive director.
The city plans to select a concessionaire for the arena in a few weeks, he said.
According to Kossow, the selected vendor would pay an upfront fee of about $1 million for the concession rights for the arena, and would provide 30 percent to 40 percent of its profit to the arena under a lease agreement.
The arena's projected opening date is Nov. 4. The facility is expected to cost about $41 million to construct.
On Thursday, the city's board of control will consider $211,546 in five contract reductions for the arena, and $378,504 in eight contract additions. If all are approved, the board will agree to spend $166,958 more on the arena.
Construction review
The city, as well as Hunt Construction Group of Dallas, the arena's construction manager, and MS Consultants Inc. of Youngstown, the project's engineer, are constantly looking at contract specifications for cost savings.
The three are also looking at contracts and work being done at the arena's design to make improvements that ultimately end up adding money to the project.
The biggest additions being requested Thursday by the Department of Public Works to the board of control are $180,621 for steel revisions and $95,784 for steel modifications. Both add-ons are for Ohio Steel Industries, the company that is receiving $3.9 million for steel work at the arena.
The biggest cost reduction to be considered is $115,386 to VEC Systems, the company installing the arena's roof. The savings is for a reduction in the cost of materials that will not impact the quality of the building.
VEC agreed last month to $126,586 in savings for changes to the roof's materials and insulation. With the reductions, the city is paying $668,859 to VEC.
The city cannot reduce the amount paid to a vendor for work on the arena project unless the vendor agrees to accept the cut.
skolnick@vindy.com