Less of a loss at city center

By David Skolnick

Covelli Centre loses $67,117 in most recent quarter, down from $141,775 in 2008.

YOUNGSTOWN — As it has since it opened, the Covelli Centre lost money during the July-to-September quarter.

Even so, city and center officials are pleased that the operating loss for the quarter was considerably less than in previous years.

“It’s tough to say you’re satisfied with a loss in a quarter, but when you look at it, we’re satisfied with how we got through a rough part of the year,” said Eric Ryan, the center’s executive director.

The center had a $67,117 operating loss for July, August and September, according to figures released Wednesday.

That is less than half of the center’s operating loss for the same quarter in 2008. And it’s much better than the $253,998 loss for the same quarter in 2006.

“Considering where we came from, I’m proud of how things have turned around,” said Ryan, who’s run the center for the past two years.

Because of an increase in outdoor concerts and other entertainment events, indoor arenas, such as Covelli, typically lose money between July and September, Ryan and arena experts have said.

The operating loss doesn’t take into account the $700,000-plus the city pays in one lump sum annually to cover the interest on $11.9 million it borrowed in 2005 to help fund the center’s construction.

The loss also doesn’t include the more than $175,000 in revenue it has made so far this year — including $40,092 during the July-to-September quarter — on a 5.5 percent admission tax on each ticket for events at the facility.

Those two items aren’t included in the center’s operating budget. Instead, the admission tax goes to Youngstown’s general fund and is used for many purposes, primarily economic improvement projects around the center.

The $67,117 operating loss is considerably less than $162,031 center officials expected to lose between July and September.

Among the major factors reducing that operating loss, said Ryan and city Deputy Finance Director Kyle Miasek, are:

U A $60,000 net profit made on the sold-out Aug. 20 Journey and Heart concert.

U Spending $69,339 on utilities compared to the $116,451 budgeted for those expenses. The center turned off its air conditioning unit and lights during times when no events were scheduled, Ryan said.

U Spending $20,541 less on staff costs by temporarily laying off three full-time workers and some part-timers.

“This is the best we’ve ever done,” Miasek said.

As of Sept. 30, the center has made $186,305 in operating revenue.

The center’s budget projects about $80,000 in operating revenue for the final three months of this year, Ryan said.

If that amount is reached, the center would end 2009 with $266,305 in operating revenue. The center, which opened in October 2005, has never finished a year with operating revenue.

“We may hit it,” Ryan said of the $80,000 in operating revenue for the last three months of the year. “I’m hopeful we can reach that number.”

skolnick@vindy.com

COVELLI CENTRE

Operating losses

The Covelli Centre loss during the July-to-September quarter is less than in previous years. These figures don’t include money Youngstown borrows annually to cover the interest on $11.9 million it spent to help fund the center’s construction costs or the revenue the city makes on a 5.5 percent admission tax on each ticket for events at the facility.

2006: $253,998 loss

2007: $220,938 loss

2008: $141,775 loss

2009: $67,117 loss

Sources: Youngstown Finance Department and Vindicator files