Arena deal gives Youngstown a hand with debt repayment

By bolstering its financial commitment to the Chevrolet Centre, Global Entertainment Corp. has signaled its confidence in the future viability of the downtown Youngstown arena, and has acknowledged its responsibility to city government, which borrowed $11.5 million to make the project a reality.
From a public relations standpoint, the deal agreed to in principle by Global and the city is a masterstroke. It will silence the critics who have questioned the Phoenix-based company's commitment to making the arena a success and will reassure Youngstown taxpayers who have been worried about the $767,000 annual debt service.
But while Global and the city deserve high praise for forging an agreement that makes cost-sharing an integral part of their relationship, it is noteworthy that it comes on the heels of several high publicized meetings that featured members of city council, Mayor Jay Williams and others in his administration, and top Global officials.
Lawmakers began asking pointed questions about the city-Global arrangement after the company admitted that the $1.15 million profit projection for the 2006 fiscal year made by former Executive Director Jeff Kossow would not be achieved.
In an editorial published Jan. 22, we applauded Councilman Rufus Hudson, D-2nd, for asking then interim executive director Roger Swanson why Global was revising its profit projections rather than doing whatever it takes to meet the $1.15 million profit target.
Crucial question
We noted that Hudson's line of inquiry opens the door for the mayor and members of council to seek an answer to the following crucial question: Does the contract between the city and Global Entertainment impose any penalties on the company if it fails to deliver on its promises?
We'd still like to know -- even though the agreement that was announced last week guarantees that the city will receive $600,000 a year from Global and that the company will cover any operating losses. For the current fiscal year, which ends Sept. 30, Global will pay half the city's debt service.
Ever since the opening of the arena last October, we have been seeking full disclosure of all contracts pertaining to the construction of the $45 million structure, the management, operation and maintenance and the agreement between the Youngstown SteelHounds and Global.
Such scrutiny is justified because the Chevrolet Centre is a public facility and taxpayers have a right to know everything about the financial and other arrangements. This situation cries out for transparency.
We have heard the arguments for why Ohio's public records laws do not apply -- Global is a private company that is operating on behalf the city of Youngstown -- but we aren't buying. Mayor Williams must know that secrecy breeds conspiracy theories. He can silence the detractors by placing every piece of paper related to the arena in the public domain.
Although there is a private company managing the facility, no private dollars have been invested. Indeed, additional state money is being sought.
Taxpayers have a right to know how their dollars have been or are being spent.