Auditor makes Youngstown an offer it should not refuse

The $45 million publicly owned sports and entertainment arena in downtown Youngstown has been in operation for three years, has yet to turn a profit and is now under local management because the national company hired by city government to make it a success did not live up to expectations.

And, given that the city’s already strained operating budget is being drained of more than $600,000 year for the annual interest obligation on the $12 million it borrowed to pay its share of the construction cost, the Chevrolet Centre’s financial health needs to be evaluated independently.

It will be — if Mayor Jay Williams and city council take up Ohio Auditor Mary Taylor’s offer to have her office conduct a performance audit. Her offer reflects a desire to help the city make the $45 million taxpayer-funded facility a success. While the city would have to pay for the audit, we are confident that Taylor would strive to keep the cost down.

Early in her term last year, she was urged to conduct a special audit because of persistent operating losses and city government’s being on the financial hook. As the only Republican holding a statewide administrative office, Taylor could easily have attempted to score political points by grandstanding on this issue. But, she urged patience and pledged that upon completion of her administration’s first regular audit of Youngstown city government’s books, she would determine whether a closer financial look at the Chevrolet Centre was warranted.

The regular audit was released last week, and during a meeting with Vindicator writers to discuss the findings, Taylor broached the subject of a special performance audit of the arena.

Comparisons

Such an evaluation would put the operation of the center under a microscope, and the auditor’s office would compare it with similar arenas around the country.

That’s important in light of the fact that city government does not have the expertise to run such a facility.

Indeed, when the Chevrolet Centre was first conceived several years ago by then Congressman James A. Traficant Jr. of Poland, D-17th, there was lengthy debate about how it should be governed.

Traficant was able to persuade city government to create a special governing board of business and community leaders and city officials.

The board developed the concept for what was originally referred to as the convocation center and was on the verge of hiring a construction manager and general contractor when members of city council pulled the rug from under it.

Council and the mayor’s office took over the project, resulting in a $45 million facility — much more expensive than the $26.8 million center envisioned by Traficant. He had secured a federal grant in that amount.

The end result is a huge debt incurred by City Hall and continuing operational losses.

A performance audit by the office of state Auditor Taylor is timely and necessary. It would be money well spent by the city.