Interest rate drops on Covelli debt, padding payment on balance

YOUNGSTOWN

The interest rate on the money the city owes for its share of constructing the Covelli Centre is less than last year.

The rate declined from 1.4 percent last year to 1.15 percent this year, said Finance Director David Bozanich.

Also, this year the city, which owns the center, is making its largest annual payment toward the principal of that $11.9 million construction loan.

“We’re very pleased with the rate,” he said. “The center is showing an actual positive ending balance, which helps with the rate.”

The annual operating surplus, food-and-beverage revenue and a 5.5 percent admission tax the city charges on tickets sold at the facility have offset the city’s debt on the center the past two years, and is on pace to do the same this year.

The city paid a 1 percent interest rate in 2012 from Key Bank after seeking proposals for the loan through competitive bidding.

Read the complete story in Wednesday's Vindicator or on Vindy.com.