Start-up costs lower Covelli, amphitheater surplus

By DAVID SKOLNICK

skolnick@vindy.com

YOUNGSTOWN

The operating surplus for the Covelli Centre and Youngstown Foundation Amphitheatre during the second quarter was $26,032, but would have been more if not for significant start-up costs at the outdoor location, said the head of the company managing both facilities.

About $100,000 was spent in start-up expenses at the amphitheater between April and June, said Eric Ryan, president of JAC Management Group, which runs the amphitheater and the indoor center for the city.

The amphitheater opened June 14 so this is the first time that facility is included in the quarterly financial reports provided by JAC.

“A lot of money went into getting the place open between staffing expenses, having to purchase kitchen equipment, signage costs, attorney fees for the liquor license transfer,” Ryan said.

The $26,032 operating surplus for the second quarter was a drop from the $77,427 surplus during 2018’s second quarter. But before that, the center went three straight second quarters with operating losses: $84,267 in 2017, $26,721 in 2016 and $85,803 in 2015.

Since it opened, the center has had seven second quarters with operating surpluses and seven with losses. The best was $229,740 in 2012 and its worst second quarter was in 2007 with a $205,215 loss.

During the first three months of this year, the center had a $229,386 operating surplus. For the first half of the year, the operating surplus is $255,418. The budget estimated the surplus for the first six months to be $223,343.

Ryan said he expects the two facilities will end the year with an operating surplus of about $300,000.

Also, the city made $65,532 during the second quarter from its 5.5 percent admission tax on tickets sold for events at the center, said Kyle Miasek, the city’s interim finance director. For the first six months, the city received $106,454 from the tax.

During the April-to-June period, the facilities had 18 events with about 40,000 people in attendance, Ryan said.

The best attended events were concerts at Covelli by Lionel Richie with 5,500 people and Slayer with 5,000 and Chicago at the amphitheater with 4,000, Ryan said.

Opening night at the amphitheater with a free concert on June 14 attracted about 3,500 people, he said.

But the first paid show at the outdoor facility, Gucci Mane on June 22, drew 2,000, he said.

The city borrowed $11.9 million in 2005 to pay its portion of building the $45 million Covelli Centre.

The city still owes $8.36 million in principal and will make a $900,000 payment toward the principal this year.

It paid nothing in principal until 2011 and has increased its annual payment.

The city also borrowed $4 million from the U.S. Department of Housing and Urban Development earlier this year to pay for the amphitheater with the rest of the $8 million cost to build it coming from naming-rights deals.

The city is repaying the $4 million HUD loan over 20 years starting next year with an interest rate of 2.59 percent.

That’s an annual payment of $205,180.