Deal has Global helping with debt

The plan benefits the city and the company, the mayor says.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- The city reached a verbal agreement with the company managing the Chevrolet Centre that includes financial compensation to the facility from the company, Mayor Jay Williams said.
The tentative agreement was reached Friday after a week of teleconference calls between the city and Global Entertainment Corp., Williams said.
The agreement needs to be put into written form and signed by both parties, something that should be done shortly, Williams said.
Williams declined to discuss the details of the pact, but said it includes financial compensation from Global. The city owns the Chevrolet Centre, a $45 million facility that opened in October 2005.
"The deal benefits both parties," Williams said. "This doesn't just provide short-term solutions but addresses long-term needs."
If the written contract accurately reflects the verbal agreement, Williams said he would be satisfied with the deal.
"It would allow us to continue this relationship in a more constructive manner," he said. "I'm satisfied with the verbal agreement."
Global, a Phoenix company, released financial figures last week of the center's first six months, from October 2005 to March.
Here are the figures
Global had estimated a $632,608 profit during the first six months, but the facility's actual profit was $220,819 for that period. That is about 35 percent of its income goal.
Global projects a $12,611 profit for April through September, considered a slow period of the year for indoor arenas.
Overall, Global projected a $645,221 profit for the center between October 2005 and this September.
Williams says the facility could see no profit or have a loss during its first 12 months. He also has expressed disappointment and frustration with the center's financial struggles.
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.
City revenue and the expected money from Global will be used to make up any shortfall, Williams said.
Attempts in recent days to contact Global corporate officials to comment have been unsuccessful.
skolnick@vindy.com