Chevy Centre deficit at least $80,000

Tuesday, August 22, 2006 The center is now running at a deficit. By DAVID SKOLNICK CITY HALL REPORTER YOUNGSTOWN — The city-owned Chevrolet Centre is expected to finish its first 12 months with a deficit of $80,000 to $120,000. That compares with the $652,264 profit Global Entertainment Corp., the company managing the facility, estimated for the center's first 12 months. Senior Global officials told city Deputy Finance Director Kyle L. Miasek of the anticipated loss Tuesday. Financial statements for July, released Tuesday, show that the center lost $122,998 for the month. The facility held only two events in July: an outdoor concert and Kidzfest for children. During the facility's first 10 months of operating, from October 2005 to last month, it lost $9,850. The center has lost money in six of those 10 months. Of its four profitable months, three were October, November and December 2005. With July's loss, the center is running a deficit for the first time in its short history. It is expected to lose about $100,000 for August, Miasek said. The facility held Summer Soul Fest on Aug. 4, and a World Wrestling Entertainment show is set for Tuesday. Those are the only events scheduled for this month. Miasek is hopeful the facility will break even in September. It is presenting seven performances of Ringling Bros. and Barnum & Bailey circus, as well as a concert headlined by the band Staind, and a job expo. Revised deal A revised deal approved last month calls for Global to pay the city for any shortfalls during a fiscal year. Also, Global will pay $363,500, half of the city's debt service for the center during this fiscal year. That money is being wired Sept. 1 to the city, Miasek said. One new modest form of income for the center beginning last month is permitting people to park in the facility's parking lot for $5 each. There are 200 available spots. If all are sold, the center makes $1,000 an event. The center still has a $210,000 annual contract with USA Parking to use nearby parking garages and lots. A $1.50 parking fee on each ticket was supposed to more than pay that contract. But the center failed to include the parking fee on most of its events during the first half of the fiscal year. As of July, the center has collected $46,982 in parking fees. The city and Global started last month putting a budget together for the fiscal year running from October 2007 to September 2008. The budget should be finalized at the end of next month, Miasek said. Unlike the center's first-year budget that anticipated revenues from events that were never booked, the second-year budget is built on guaranteed shows and events, Miasek said. That includes the 32 Youngstown SteelHounds minor league hockey home games and the eight home games of the Mahoning Valley Thunder AF2 [Arena Football League 2] team, as well as Disney on Ice and the Harlem Globetrotters shows. The budget also includes events likely to be held at the center, but that makes up a small number, Miasek said. Conclusion Though the 2006-07 budget is a work in progress, the projected profit from the center is going to be lower than the projected profit for the first year because it is a more realistic document, Miasek said. For October, the center has two DoodleBops Live! shows, based on the Disney Channel television program, two SteelHounds games, and two other events that are booked but haven't been announced, Miasek said. Regardless of the center's bottom line in its second year of operations, the revised deal with Global guarantees the Phoenix company will pay $600,000 to the city annually. Any profit above $600,000 is split, with the city getting 60 percent and Global receiving 40 percent. skolnick@vindy.com