Parking fee missed in charges for tickets

February was incorrectly projected to be a profitable month for the center.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- In its first five months, the Chevrolet Centre earned less than half of its income goal with the failure to assess parking feesa key reason for the problem.
Financial figures for February, released Monday, show the city-owned facility lost $116,525 that month.
Global Entertainment Corp., the Arizona company that manages the center, projected in January that the facility would have a $69,594 profit in February. That projection included two music concerts at the center in February, but none was held.
Through its first five months, the center's profit is $245,872. Global had projected profit through February of $553,203, more than double the actual amount.
Global's projection stated the center would make $645,221 in profit between October 2005 and this September. The city wanted enough money to pay the $767,000 annual debt service it has from borrowing $12 million to help fund the center's construction.
The failure to include a $1.50 parking fee on tickets to most Chevrolet Centre events -- including all Youngstown SteelHounds hockey games -- led to the loss of about $144,000 in revenue, said Kyle L. Miasek, the city's deputy finance director.
Miasek, the city's point-man on the center, discovered the parking fee discrepancy. He then contacted center officials about the problem and was told it was an oversight. Matt Hufnagel, the center's general manager for the past six weeks, said he wasn't running the facility at the time of this problem and couldn't comment on what happened without first looking at the past financial reports.
Hit-miss charge
The fee was included in a show by Larry the Cable Guy and on three indoor ice-racing events, all held in January. But it was not included in the February appearance by the Harlem Globetrotters. Also, the parking fee isn't included in the contract Global signed with the SteelHounds. The city is working to rectify that issue, Miasek said.
The parking fee was assessed on non-SteelHounds events in March except a home and garden show because tickets for that event were $6 and it wouldn't have be fair to add the parking fee to it, Miasek said.
Also, tickets for future concerts and other entertainment events will include the parking fee, he said.
The city and Global signed a 10-year deal in October 2005 to pay $210,000 annually to USA Parking Systems to use more than 2,000 spaces at parking decks and lots throughout downtown for those attending center events.
City officials said at the time it would more than make that money back through the fees on each ticket, and the deal eliminated the hassle of those attending center events to pay to park.
Global estimated the parking fee would generate $284,950 in gross revenue during the first 12 months for a $74,950 net profit. During the first five months, the parking fee generated $19,057.
March was the busiest month at the center in terms of events to date, and Global sold a 14-seat luxury suite during the month, Miasek said. It was the first luxury suite sold at the center since shortly after it opened. Three remain unsold.
Global's projected profit for March is $79,407.
Report expected
Global officials are expected to attend the April 19 city council meeting and hope to have March financial figures to give a six-month assessment of the center, Miasek said.
"They need to come to us with a calendar of events for the next six months," he said.
With the hockey season over, Global faces the challenge of booking events at the city-owned center during the upcoming months, Miasek said.
Three concerts are scheduled this month -- Korn played Monday night -- as well as a show featuring the Lipizzaner stallions. Eight Disney stage shows are scheduled for May 11-14. The center is off to a good start in April and needs to build on that, Miasek said.
Global fared poorly in February with selling sponsorship rights, which includes naming rights and advertisements. It had budgeted $74,286 for that category in February but took in $31,650. The center has received $582,000 in sponsorship rights during its first five months compared with the budgeted amount of $613,407.
GM contract
The city is still working to finalize a contract with General Motors over the naming rights of the Chevrolet Centre. The city hopes to have the contract done this month, Miasek said.
City and GM officials announced Nov. 17, 2005, that the vehicle manufacturer agreed to pay $175,000 in cash annually and provide $25,000 worth of vehicles for the center. The deal is for three years with 17 annual options.
To date, GM paid $25,000 for the naming rights. The rest of the money will come when the deal is signed.
Salaries for center employees are lower than budgeted as of February, but costs for overhead -- particularly energy bills -- are more than $115,000 higher than budgeted.
In February, the electric and gas bills for the center were about $75,000, Miasek said. Energy costs should decline because the hockey season ended and there is no longer a need to run the center's refrigeration system for the facility's ice, he said.
skolnick@vindy.com