Wednesday, February 18, 2015
YOUNGSTOWN
The city-owned Covelli Centre enjoyed a record financial year in 2014.
And, the entertainment venue returned more than $200,000 to the city’s bottom line.
The center’s operating surplus for the past year was $485,234. Add to that a 5.5 percent admission tax on tickets that collected $221,485.
That $706,719 in combined revenue from the surplus and admission tax is the best operational surplus in one year for the center that opened in October 2005.
The previous record year was 2013 with $348,821 in operating surplus and admission tax.
It’s a far cry from 2006, the center’s first full operating year, when it had a $541,298 operating loss and the admission tax didn’t exist.
“If you would have told me seven years ago that we would be giving the city $706,000, I would have told you, ‘You’re nuts!’” said Eric Ryan, the center’s executive director, who was hired to run the facility in January 2009 after doing so on an interim basis for 14 months.
“We have exceeded all expectations operationally, and we are extremely pleased with the success. It was a phenomenal year.”
Also, the money from the center in 2014 was more than the $472,590 in principal and interest — $350,000 and $122,590, respectively — the city is paying for the center this year.
After paying principal and interest in 2014, the center is providing $234,129 to the city’s financial bottom line.
This is the third-consecutive year that the center’s revenue was more than the loan’s principal and interest payments, and this is the largest amount. The center’s revenue exceeded the loan’s principal and interest by $67,261 in 2012 and by $76,912 in 2013.
The city borrowed $11.9 million in 2005 to pay its portion of building the $45 million facility, and still owes $10,635,000 in principal.
“We’re very pleased with the numbers and Eric’s team’s management of the facility,” said Mayor John A. McNally. “The expectation is high and they keep pushing ahead. We’re happy with how things are going.”
Having Ryan’s company, JAC Management Group, take over the center’s food-and-beverage sales in May 2012 has helped the city’s bottom line.
The city received $96,563 more in those sales last year than it would have under its previous agreement with Centerplate, Ryan said.
The center had 80 events in 2014 with nearly 190,000 people in attendance, Ryan said. That included sold-out concerts by Elton John, Rod Stewart, Darius Rucker, Hunter Hayes, and Five Finger Death Punch.
John’s concert is largely responsible for the record operating surplus as it was the main show in last year’s first quarter. The operating surplus for the January-to-March quarter of $382,016 is the most profitable three months in the center’s history. That concert set a center attendance record of 7,611.
Also, the center’s Youngstown State University Community Room was used 75 times for events such as public meetings, private parties and company seminars.
The center spent $50,000 last year on improving the facility, Ryan said. The center’s Huntington Bank VIP Lounge was upgraded with new carpet, furniture, fixtures and an enclosed glass wall, and the area was painted. The center also upgraded its suite level with new carpet and paint, and did some preventive maintenance.
“We have been able to really control our costs very well, and we’ve been able to defy the odds when it comes to attracting bigger shows,” Ryan said. “Rod Stewart was a monster show that had no business in a 6,000-seat place, but we did it.
“The response of the corporate and business community with our suites and sponsorships is great. Also, we treat people the right way. We understand it’s a smaller community and we need to give value to people, and they’ve responded.”
Ryan said he’s optimistic this year will be as successful as 2014.
“We’ve come out of the gate really well in 2015 with sell-out concerts by Trans-Siberian Orchestra and Brad Paisley, and we announced Def Leppard” for a July 15 concert, Ryan said. “We’re looking at comparable numbers for 2015.”
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