Chevy Centre profit forecast: $950,000

The original estimate was about $200,000 higher than the updated one.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN -- An updated financial projection for the Chevrolet Centre estimates the city-owned facility will make about $950,000 in profit this year.
Last summer, the center's management had estimated the 2006 profit at $1,153,802.
But the original estimate, categorized as conservatively low at the time by center and city officials, was updated Friday because it was too optimistic, said Roger Swanson, the facility's interim executive director.
One major miscalculation in the summer projection was that the Youngstown SteelHounds minor league hockey home games, played at the center, would average about 5,100 fans. The actual average, Swanson said, is about 2,700 a game.
The original center profit estimate was developed largely by Jeff Kossow, who quit as the center's executive director in December. Kossow, who runs a three-building entertainment facility in Kennewick, Wash., couldn't be reached Monday to comment.
Updated projection
City Finance Director David Bozanich said center officials sent him an updated financial projection late Friday that estimates this year's profit at $950,000.
The first item to be paid out of the profit is the city's debt service. The city borrowed about $12 million at 6.5 percent interest to make up a funding gap for the cost of building the center.
City officials had said during the summer that the annual debt service was estimated to be $850,000. But Bozanich said Monday the actual debt service amount is about $767,000, because the loan had a lower-than-anticipated interest rate.
"We're still cautiously optimistic [about the center's success] as we were since Day One," Bozanich said. "The hockey needs time to build."
Local officials with Global Entertainment Corp., the Phoenix-based company serving as the center's manager, will discuss the facility's financial condition at Wednesday's city council meeting.
Oversight committee
Also at Wednesday's meeting, council will consider legislation to create a Chevrolet Centre oversight committee, consisting of three council members, said Councilman Paul Pancoe, D-6th, the resolution's sponsor.
The committee would review the facility's event schedule, financial reports, staffing levels, ticket sales, concession issues and parking, Pancoe said.
City officials last received financial information from Global in September. The delay was caused by Kossow's leaving, and the center employees' needing additional training including how to use the facility's computer software, Swanson said. The facility also fired two full-time employees because of finances, he said.
"They were going through a management issue and other things," Bozanich said.
The finance director said he understands there were problems, but city officials were tired of months of excuses for the delays and wanted answers.
Also, Compass Facilities Management Co. of Ames, Iowa, which formed a partnership with Global Entertainment, is no longer involved with the Chevrolet Centre, Swanson said. The partnership ended Dec. 31, according to Swanson, who didn't have details on the breakup.
Bozanich also didn't know why the partnership was dissolved, but said it was an internal Global matter.
Attempts during the past week to reach corporate Global officials have been unsuccessful.
skolnick@vindy.com