Williams charts future for troubled Chevrolet Centre

When Jay Williams took office in January 2006, he inherited from his predecessor, George M. McKelvey, the Chevrolet Centre and all its problems. The biggest problem turned out to be Global Entertainment Corp., which had a contract with the city to operate and manage the arena.

Williams tried mightily to make what McKelvey had left him work, but he finally concluded that Global was not the right fit for the Chevrolet Centre or the city. Year after year of losses, along with a less than stellar events booking and marketing program put the $45 million publicly owned facility in jeopardy.

Most of the money for the construction had come from the federal and state governments. The city borrowed $12 million to pay its share of the cost.

But because of Global’s failure to consistently turn a profit, the city has had to dig into its general fund to cover just the interest on the loan — a whopping $750,000 a year.

Faced with this untenable situation, Mayor Williams, with council’s backing, ended the city’s relationship with Global and then put out a request for proposals from companies that specialize in running sports and entertainment facilities.

Initially three companies submitted proposals, but one withdrew after the mayor made it known that the local manager, Eric Ryan, a concert promoter from Struthers brought in on an interim basis after Global left, and other employees on the payroll would remain in place.

City government evaluation

The two companies that stayed in the running, SMG Entertainment and Global Spectrum, were evaluated by city officials. The mayor and members of his administration ultimately chose SMG.

City council affirmed that selection Wednesday and will review the final contract between the city and SMG. That is a concession made by the mayor to move the process along. However, Williams made it clear that lawmakers will not have the authority to change provisions in the contract.

Given that SMG has told the city that the window of opportunity for summer events at the Chevrolet Centre is closing fast, Williams was right in urging council for an up-or-down vote on his recommendation that the city hire SMG.

As for the company’s relationship with Ryan and the employees already in place, Williams has said that SMG will use its expertise and its vast array of services to ensure that the right decisions are made.

In a meeting with The Vindicator early last week, Williams made it a point to describe Ryan as a city employee who works at the pleasure of the mayor, and stressed that the advice and direction provided by SMG will be followed.

The bottom line is that the mayor has hitched the city’s wagon to a company with no local ties — Global Spectrum had joined forces with Youngstown businessman Bruce Zoldan — and now the onus is on him to make sure the city has not taken on another burden like it had with Global Entertainment.

Mayor Williams deserves the benefit of the doubt in his selection of SMG; his critics should give him a chance to prove that he made the right decision.

If the plan succeeds, the mayor will be given the credit. If it fails, he will be blamed — justifiably.