Officials list reasons to keep Ryan at Chevy

By David Skolnick

City officials say Eric Ryan brings many positive attributes to the center.

YOUNGSTOWN —¬†So how did resistance to retaining Eric Ryan as the Chevrolet Centre’s manager become a deal-breaker for companies wanting to help operate the facility?

Ryan, of Struthers, an event promoter hired by Youngstown in October 2007 to be the center’s interim director, has impressed city officials.

“Over a period of time, it became apparent that Eric has very good insight on running the facility correctly,” said city Deputy Finance Director Kyle Miasek.

James G. Floyd, a lawyer working on behalf of the city, wrote to the companies interested in helping operate the facility Feb. 28 asking if they’d be willing to a “strategic alliance” with Ryan serving as director of the city-owned entertainment facility.

SMG and Global Spectrum, both of Philadelphia, responded that they’d be willing to make such an arrangement.

The Cavaliers Operating Co., a Cleveland company which had a joint proposal for the center with the Chicago-based International Facilities Group, said no.

That decision led to the end of discussions between the city and the two companies regarding the center.

“We had the right to reject, select pieces [of a proposal] or negotiate” with the companies interested in helping to run the center, said city Finance Director David Bozanich.

A contract between the city and Ryan’s company, JAC Management Co., still needs to be negotiated. As long as there are no objections from city council, that will occur.

Miasek and Bozanich have a long list of reasons to retain Ryan.

Ryan is local and would provide stability at the center, Bozanich said. During the two years that Global Entertainment Corp. operated the center, there were five managers.

During Ryan’s four-plus months operating the facility, he’s quickly learned “the complexity of not just running the center, but has a strong understanding of the relationship between promoters, performers and the building,” Miasek said.

Under the previous agreement the city had with Global Entertainment Corp., which had its issues and challenges, that company was paid $12,500 a month to operate the center.

Also under that deal, 15 percent of the money made for the sale or rental of luxury suites, club seats and sponsorship went toward commissions.

Ryan’s company currently receives $9,000 a month, and the commissions are 2 percent to 3 percent.

Officials from SMG and Global Spectrum, not affiliated with Global Entertainment, have complimented Ryan’s performance, Miasek said.

“He’s hands-on, he’s local and we get positive feedback from people about what he’s done,” Bozanich said.

With Ryan running the day-to-day operations of the center, the national company hired would provide support in marketing services, event booking, risk management and insurance, administration and financing.

“We think we can optimize the performance of the center with Eric Ryan and a national big brother,” Bozanich said.

Bozanich sent a letter Feb. 26 to the companies interesting in helping to run the center asking each if they’d enter into a long-term management agreement that would guarantee a net annual payment of $900,000 to the city.

Each company declined.

That figure is about what it would cost the city to repay the $11.9 million it borrowed for its share of the center’s $45 million construction budget over 20 years with interest.

While the answers weren’t surprising, Miasek said it was worth asking.

“Our thought pattern was let’s pose this question and see if anyone would go for it,” he said. “Why not try? What if one was willing to say ‘Yes’ and we never asked? We would have missed that opportunity.”

skolnick@vindy.com