State can’t help city with Chevy Centre debt

By David Skolnick

YOUNGSTOWN — City officials expecting money from the state’s capital bill to reduce the $11.9 million debt on the Chevrolet Centre ended up empty-handed again.

Mayor Jay Williams said he put together a comprehensive package of documents, many of them articles published by The Vindicator, emphasizing the city’s need for the center and previous commitments from state officials for the funding.

But a change made by the state as to how it’s funding the 2009 fiscal year capital bill made it impossible to give Youngstown money to pay a portion of its debt on the center, said state Sen. Capri Cafaro of Liberty, D-32nd, and the ranking Democrat on the Senate Finance and Financial Institutions committee.

Because of the state’s financial problems, it used no money from its general fund to fund the capital bill, she said.

Instead, the state will borrow $1.3 billion to fund the biennial bill that provides money for hundreds of projects throughout Ohio, she said.

It’s unconstitutional for the state to borrow money to help a city pay down debt, Cafaro said. The money has to be used for “bricks-and-mortar” projects, she said.

Kenneth A. Carano, the governor’s regional director for the Mahoning Valley and a former Ohio House member, and state Sen. John Boccieri of New Middletown, D-33rd, who represents Mahoning County, agreed with Cafaro.

The city sought $2 million from the capital bill to reduce its center debt.

“But it was never seriously considered,” Carano said.

Williams said he wasn’t made aware of the change in the capital bill until he was told of it Tuesday by The Vindicator.

“We hope this doesn’t preclude us from seeking money [for the Chevrolet Centre] once the state’s finances are in order,” he said.

The mayor said he’ll continue to seek money from the state to reduce the city’s debt on the center.

“If there was general fund money, we would have provided money for the center,” Boccieri said. “No question we can do this in future cycles.”

The Ohio House is expected to approve the bill today or Thursday with the Senate approving it May 28 or 29.

Obtaining money from the state for the center has proved to be a frustrating exercise for city officials.

The state provided $2 million toward the project from the 2005 fiscal year capital bill. The city still owes $11.9 million of the center’s construction cost.

The verbal understanding in 2005, according to city officials and state legislators from the Mahoning Valley at the time, was another $2 million would come from the 2007 bill for the center and then $1 million from the 2009 capital bill.

But the city received nothing from the 2007 capital bill, and won’t get anything from the 2009 bill.

Then-state Rep. Sylvester D. Patton Jr., a Youngstown Democrat, acknowledged in December 2006 that he didn’t submit a proposal for the money — believing it would automatically be included in the 2007 capital bill.

The center cost about $45 million to construct, with most of it — $26.8 million — coming from a federal grant.

Since it borrowed the money in 2005, the city has paid about $750,000 annually in interest on the $11.9 million it owes. It hasn’t paid a penny toward the principal.

Williams said the city wanted to reduce the $11.9 million amount before taking out a long-term loan to pay back the principal and interest.

Meanwhile, city council is expected today to discuss the mayor’s recommendation to hire SMG, a Philadelphia company, to help manage and promote the center.

Williams wants council to approve the deal today but said he wouldn’t be surprised if it was somewhat delayed. The mayor said a deal with SMG must be in place no later than the end of next week.

skolnick@vindy.com