Highlights of a proposed deal to have SMG, a Philadelphia-facility management company, help run the

Highlights of a proposed deal to have SMG, a Philadelphia-facility management company, help run the Youngstown-owned Chevrolet Centre:

SMG would waive its monthly consulting fee from the time the contract started through Dec. 31. SMG would only be reimbursed for travel expenses pre-approved by the city.

Beginning Jan. 1, 2009, SMG would have a five-year contract with the city. The company would receive a monthly management and consulting fee of $6,667. The company would receive an increase each year beginning in 2010 by the percentage change in the consumer price index.

The company wouldn’t receive commissions, just the flat rate.

The city would keep the first $100,000 in net operating income from the center. Each additional $100,000 in income would be divided among the city, and SMG and JAC Management Co., which handles the center’s day-to-day operations. SMG/JAC would receive 20 percent of the second $100,000 in net operating income, increasing 5 percent for each $100,000. All profits in excess of $700,000 would have the city receiving 55 percent and SMG/JAC receiving 45 percent. The center didn’t turn a profit in either of its first two years of operations.

Sources: Management recommendations for the center from city administration, and Vindicator files