City tables renewal of parking contract

The parking company could make more money without a contract, its owner says.

By DAVID SKOLNICK

CITY HALL REPORTER

YOUNGSTOWN — The city isn’t signing a two-year contract extension — at least for now — with a Cleveland company that handles the Chevrolet Centre’s parking contract.

City council’s buildings and grounds committee recommended the city sign a month-to-month deal with USA Parking Systems for up to three months. During that time, the city will monitor the use of USA Parking’s decks and lots by center patrons to determine how many use the parking spaces.

After that, the city will decide to maintain, revise or end the parking agreement.

USA Parking provides up to 2,400 spaces for every event at the city-owned Chevrolet Centre, and the city pays $220,000 annually for that service regardless of how many people park in the company’s lots and decks.

A formal count has never been done, but city Finance Director David Bozanich estimates about 1,300 to 1,400 spaces are used per event.

The estimate wasn’t good enough for members of council at Tuesday’s meeting. Those members — Councilman Rufus Hudson, D-2nd, who chairs the committee; Councilwoman Carol Rimedio-Righetti, D-4th; and council President Charles Sammarone — said an accurate count is needed for them to make an informed decision on the contract.

Hudson also objects to the guaranteed fee paid to USA Parking and wants the city to look at other options.

Bozanich pointed out that not having to physically hand money to someone at a lot or deck to park is a convenience that attracts people to the center. The council members dispute that, however.

Though no money changes hands at USA Parking lots and decks for events, parking isn’t free.

A parking fee of $1.50 to $1.75 already is included in the cost of tickets. The city is in the process of eliminating that parking fee as well as a facility fee of the same cost on center tickets and replacing them with a flat 9.5 percent admission tax. That will increase the amount of parking revenue the city will receive for a majority of center events, Bozanich said.

The city’s deal with USA Parking was to expire next Wednesday.

If that arrangement is changed, Bozanich said, downtown parking owners will charge whatever they can for those going to center events; and it will be considerably more than what patrons pay now.

Lou Frangos, who owns USA Parking, said in an interview after the meeting that he is willing to accommodate the city under a short-term deal.

But he said USA Parking could make more money charging a $5 parking fee instead of signing the guaranteed $220,000-a-year deal.

If the city decides it doesn’t want to continue its contract, Frangos said he would keep his parking facilities open and charge at least $5 a vehicle and probably more, depending on the event.

“It’s supply and demand,” he said.

A lot near the center not owned by USA Parking charges $10 a vehicle, and is typically full for events, city officials say.

If the USA Parking deal is dissolved, it would leave the city charging an admission tax that is supposed to cover parking costs, but wouldn’t.

Also Tuesday, the city received $600,000 from International Coliseums Co., the outgoing manager of the financially struggling center.

As part of a settlement reached last week, ICC was to pay the money and drop a federal lawsuit against the city over a breach of contract. ICC filed the notice to dismiss Monday and a federal judge dismissed the case Tuesday.

ICC’s last day as the center’s manager is next Wednesday. An interim manager will start shortly while the city looks for a permanent replacement.

skolnick@vindy.com