http://downtownyoungstown.com Another Nifty Geeklog Site matt@idorapark.org matt@idorapark.org Copyright 2008 downtownyoungstown.com GeekLog Sun, 06 Apr 2008 19:24:29 -0500 en-gb http://downtownyoungstown.com/article.php?story=20080406192350282 http://downtownyoungstown.com/article.php?story=20080406192350282 Sun, 06 Apr 2008 07:23:50 -0500 http://downtownyoungstown.com/article.php?story=20080406192350282#comments General News From the Business Journal By George Nelson YOUNGSTOWN, Ohio – The broad recognition that Ticketmaster enjoys in the ticketing industry is just one of the assets that the company will bring when it takes over ticket sales for the Chevrolet Centre next month, city officials say. The Youngstown Board of Control Friday approved awarding a contract to Ticketmaster, based in West Hollywood, Calif., contingent on approval by the city Law Department. Approval of a formal contract is expected to take place at next week’s meeting of the Board of Control. Seven companies expressed interest in handling ticketing for the city-owned arena, including Gettix, which currently handles the service. Gettix is affiliated with Global Entertainment Corp., the company that managed the Chevrolet Centre until city officials severed the relationship last fall. “Ticketmaster is synonymous with selling tickets. We have had many customers come to the facility wanting to know why they couldn’t buy tickets at Ticketmaster,” said Kyle Miasek, Youngstown’s deputy finance director, who oversees the arena’s operations on behalf of the city. In addition to having tickets for arena events marketed by Ticketmaster and available at its various outlet locations, the Chevrolet Centre box office will be able to count on service and support from its Cleveland and Pittsburgh offices, Miasek said. “Before we were supported by a company out of Phoenix,” he remarked. “It’s a different relationship being on the phone versus being able to have technical support in person.” Under the terms of the five-year contract, Ticketmaster will add a “convenience charge” ranging from $3 for tickets $15 and under to $6 for tickets priced at $45 and above, with royalties ranging from 25% to 40% of that fee paid to the city. The charge is collected on tickets sold via outlets, telephone and the Internet. The surcharge will not be collected on tickets sold at the Chevrolet Centre box office. Ticketmaster representatives will be in town Monday to conduct an inventory of tickets for upcoming shows sold by Gettix and to assess how they are going to conduct the transition. The company will assume ticketing for the arena May 1. Since the city ended its relationship with Global last year, the Chevrolet Centre has been managed by JAC Management Group LLC of Struthers, a company owned by Struthers businessman Eric Ryan, who has served as the arena’s executive director. City officials are evaluating proposals from the companies that submitted proposals to operate the center, and want whatever firm is selected to retain Ryan as executive director. At the board of control meeting, Miasek said internal meetings to discuss the contracts were planned later in the day, and he expected the city to make an announcement within a couple of weeks. Copyright 2008 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=20080406192350282 http://downtownyoungstown.com/article.php?story=20080330091905355 http://downtownyoungstown.com/article.php?story=20080330091905355 Sun, 30 Mar 2008 09:19:05 -0500 http://downtownyoungstown.com/article.php?story=20080330091905355#comments General News From the Business Journal By George Nelson YOUNGSTOWN, Ohio – City officials moved ahead Friday on a revised version of a West Federal Street project that in its original form drew heavy fire from downtown activists last summer. The Board of Control awarded a contract worth $474,683.55 to Parella-Pannunzio Inc., Austintown, for the project, to reconstruct West Federal from Fifth Avenue east to Phelps Street. The contract is contingent on review by the city law department. Parella-Pannunzio was the lowest of five bidders. Design engineers projected the work should cost no more than $695,000. The project was the topic of a heated public hearing last August that caught city officials off guard. As first proposed, it would have involved eliminating a tree-lined median in West Federal. “The new plan is kind of a compromise,” said Charles Shasho, deputy director of public works. The new plan removes about 35% of the median and nine trees, leaving 13 trees. The project will result in 52 diagonal and parallel parking spaces along West Federal between Fifth and Phelps as well as 11 handicapped spaces. Additional parking will be created on Chestnut Street and Vindicator Square. Those who expressed opposition to the first plan generally support the new plan, Shasho said. Lisa Kohler of Kohler & Associates, which has an office on West Federal, acknowledged that she loved the greenery and the medians but that better parking downtown was “desperately” needed. “So I like the fact that we’re getting a little bit of both,” she said. Work on the project should begin within 30 to 45 days, and take 120 days after that, Shasho said. During the meeting, the two members of board of control who attended – Finance Director David Bozanich and Law Director Iris Guglucello – approved a memorandum of understanding involving the city, Youngstown State University and the Catholic Diocese of Youngstown regarding cost sharing that involves the Cherol property. The property was acquired as part of the YSU Williamson College of Business Administration’s building a new home and the extension of North Hazel Street. The city is acting as land acquisition agent for both projects. The board also approved a 5-year lease agreement with Ampco System Parking Inc. for 1,350 square feet on the second floor of 20 Federal Place. T. Sharon Woodberry, city economic development director, said officials are still working to complete a lease with Cleveland-based Power Direct; Power Direct plans to open a call center at 20 Federal. Once that deal is complete, the building will be about 90% full. “We’re getting a good occupancy there,” Woodberry remarked. Copyright 2008 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=20080330091905355 http://downtownyoungstown.com/article.php?story=20080201182144576 http://downtownyoungstown.com/article.php?story=20080201182144576 Fri, 01 Feb 2008 06:21:44 -0500 http://downtownyoungstown.com/article.php?story=20080201182144576#comments General News From the Business Journal By Dan O’Brien YOUNGSTOWN, Ohio -- Two companies vying for a contract to manage the Chevrolet Centre say they’re prepared to make some type of investment in the operation to help the arena become profitable. City officials Thursday heard proposals from The Cavaliers Operating Co., its partner, International Facilities Group of Chicago, and SMG of Philadelphia during separate -- and seemingly marathon -- public meetings. Global Spectrum of Philadelphia, the third company competing for the contract, presented its credentials Tuesday. Mayor Jay Williams said all three companies have made strong presentations, and each merits consideration. “Each one had something that struck me,” he said. Of the groups heard Thursday, Williams noted he was impressed with representatives of the Cavaliers organization because of its regional impact in northeastern Ohio. “I think the key is when they emphasized that this was personal,” he said. The Cavaliers Operating Co. manages the marketing and promotional affairs for the National Basketball Association’s Cleveland Cavaliers and the Quicken Loans Arena, better known as “The Q,” in downtown Cleveland. The group has committed to bringing a Cavaliers Development League affiliate to the Chevy Centre should it be selected manager for the building. “I like the idea of having the caliber of the Cavaliers,” the mayor said. “It’s one of their strong points.” Williams also noted he is impressed with the success SMG has enjoyed with arenas in markets similar to Youngstown, in particular the Sovereign Center in Reading, Pa. “The Reading arena is a compelling example of how the community has embraced the facility there,” he said. Both companies indicated they were willing to make some sort of investment in the Chevy Centre. The Cavaliers group noted that among the areas it and the city could work together are the capital investments needed to bring a minor-league basketball team to the venue. “Those capital improvements could be a matter of discussion,” said Len Komoroski, president of the Cavaliers Operating Co. The NBA development franchise could book 24 dates throughout the year and add to the building’s revenues. Representatives of SMG noted they are willing to place elements such as management fees at risk to ensure the arena’s profitability, as they would also establish a co-promotional fund to lure new business from smaller promoters. “It would be a marketing fund used as an incentive for promoters to use the arena,” said Michael Evans, SMG’s senior vice president for sports and entertainment. The Cavaliers' Komoroski stressed the geographical synergies between Youngstown and Cleveland, noting building a minor-league franchise here makes sense. He also emphasized the enormous success his marketing team has had with booking major events at The Q. “We drove here,” Komoroski said. “There are more similarities than differences [between Cleveland and Youngstown]. We’re inexorably linked to the northeast Ohio market.” Among the high points of the Cavaliers’ pitch was to ensure an NBA development league would play 24 games at the Chevy Centre. Also, Komoroski related a commitment to bring one Cavaliers pre-season game to the arena every three years. “We could schedule the first as early as October of 2008,” he promised. The NBA-D League has 14 franchises across the country and plans to expand to 30. Komoroski also added the Cavaliers have an established business relationship with major media groups in northeastern Ohio such as ClearChannel radio and FSN Ohio from which the Chevy Centre could benefit. And, Komoroski said, his organization has valuable connections in the entertainment world with the Belkin family, principals of Live Nation, a worldwide booking agency. Together, these assets could translate into more than 70,000 additional tickets sold at the Chevy Centre and between $154,000 and $300,000 more in concession revenues annually. However, generating revenue sufficient to cover the city’s $740,000 annual debt service on the Chevy Centre may take more time. “It’s not a quick fix,” said Joe Briglia, vice president of development for International Facilities Group. “Over time, it’s doable.” The Q also hosts the Lake Erie Monsters, a minor-league hockey franchise that is a member of the American Hockey League. Local businessman Herb Washington, owner of the Youngstown SteelHounds hockey team and the major tenant of the Chevy Centre, said he’s had conversations with all three companies, but is not affiliated with any of their proposals. “We’ve had very general conversations,” he said. “I want to hear what they’re talking about.” SMG’s presentation stressed that company’s success with the Reading arena and its vast network of other venues and marketing resources. Over the past five years, said David Leibowitz, SMG’s vice president of finance, the Reading arena has generated $14 million in revenues and a $2.2 million in operating profit for the building. The 7,200-seat Soveriegn Center was built for $35 million in Reading, a city of 80,000 roughly an hour away from two major metropolitan markets. The venue has landed major acts such as Elton John, Neil Diamond and The Eagles. Robert Cavalieri, senior vice president of business development, said the company manages 209 arenas, stadiums and events centers all over the world. “We use a vast network of regional support people,” he added. The company has experienced success in markets where it manages other venues, he said, where the opportunity exists to book acts that move through the region. The current operation at the Chevy Centre could use some overhaul, he said, including creating more incentives for suite holders. Through SMG’s network, suite holders could benefit from having opportunities to purchase tickets at high-end shows at other venues the company operates. Michael Slyk, co-owner of the Mahoning Valley Thunder, the AF2 football team that plays at the Chevy Centre, said both companies brought certain elements to the table. “The key is to get a group in here that’s willing to make a personal investment,” he said. Williams said discussions with “certain parties” would begin next week and a new manager would be selected sometime between 30 and 60 days. Copyright 2008 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=20080201182144576 http://downtownyoungstown.com/article.php?story=2008013121454260 http://downtownyoungstown.com/article.php?story=2008013121454260 Thu, 31 Jan 2008 09:45:42 -0500 http://downtownyoungstown.com/article.php?story=2008013121454260#comments General News From the Business Journal By Dan O’Brien YOUNGSTOWN, Ohio – Within the next 30 days, the city hopes to have an agreement in place with a new manager for the Chevrolet Centre, officials say. The selection process kicked off Tuesday as representatives of Global Spectrum, Philadelphia, spent nearly two hours in a public question-and-answer session with city officials. The company is one of three that answered questions about why it should be chosen to manage the 5,400-seat arena. “Our goal is to get negotiations under way and get it done,” said David Bozanich, the city’s finance director. Two other companies -- SMG and International Facilities Group -- are scheduled to make their presentations Thursday. It’s essential to put the selection process on the fast track, Bozanich said, because the building needs to start booking and marketing events for the rest of this year and next season. “We’ll move pretty quick on this. People have to know whom they’re dealing with,” he said. Global Spectrum, a subsidiary of communications giant Comcast, manages more than 70 different sports and entertainment venues – including 30 arenas -- across the country. The company also manages several arenas comparable in size and scope to the Chevy Centre. The key to running a successful operation in these smaller markets is forming lasting partnerships with the local business community and working with events promoters all over the country through its larger network, said John Page, chief operating officer. “We have the ability to leverage relationships,” he noted, through his company’s marketing and business resources. Bruce Zoldan, president of B.J. Alan Co., Youngstown, and Alan Levin, owner of the Mahoning Valley Scrappers Class A baseball team in Niles, have signed a memorandum of understanding with Global Spectrum to share marketing resources, Page said. Any contract the city signs would be strictly with Global Spectrum and no other partner, he stressed. “The only contract you would have would be with us. We know how to market and promote aggressively.” Mayor Jay Williams said one of his primary objectives is to select a company that could successfully manage the building on its own, so the city can tend to other business such as economic development and safety issues. “We have $12 million in debt at this facility on which we pay between $600,000 and $700,000 [in interest and principal] a year,” Williams said. “In an ideal world, we’d like that eliminated. We’re looking for someone who can come in and find a number that’s workable.” Williams would be “ecstatic,” he added, if the arena earned enough to break even and cover the debt payments. But, he noted, “We’re going to be pragmatic. We want to minimize our exposure and rely on the expertise of someone else. That’s what is driving this.” In its response to the city’s request for a proposal, Global Spectrum projected the arena to generate between $250,000 and $300,000 the first year under its management, still short of the $740,000 the city pays to cover annual debt service. Are there any specific elements of the arena’s current operations that Global Spectrum would change if it won the contract, Bozanich asked. Frank Russo Jr., senior vice president, business development and client relations, replied he sees room for improvement in the arena’s parking policy. “It could be tweaked,” he said, to bring in more revenue. The city pays USA Parking Inc. $210,000 a year to use three parking lots and two decks downtown and offer free parking for arena patrons. The contract is funded through a 9.5% admissions tax on every ticket sold. Bozanich acknowledged that placing an admissions tax on tickets probably wasn’t the most prudent decision, and asked if the company could provide an alternative that would bring more revenue to the arena. Page said there could be a mixture of a lower tax, mixed with a facilities and parking fee attached to tickets sold. And all parking revenues would go directly to the building. “Parking often generates high revenues,” he said. Would the company be willing to place any of its own funds at risk in booking an event or act, city officials wondered aloud. “We have and are willing to do that,” Page responded, noting his company has spent its own funds to market and promote shows, many of which were profitable last year. But, Russo added, it’s not Global Spectrum’s objective to compete with private promotional groups. And the company wouldn’t promote an act or show without permission from the city. “Ultimately it’s our goal to get promoters to take the risk,” Page said. And, some events probably wouldn’t be a profitable fit for the arena, Russo noted. One proposal for a third tenant is a minor league NBA franchise team. “I wouldn’t do it,” he said. “If you look at the history of the NBA minor leagues, it really doesn’t add value.” They would instead take up dates that could be filled with profitable events. Another concern for the city is the price of tickets. Global Spectrum said it would prefer to use a Comcast subsidiary, New Era Tickets, as its agency. The benefit is a flat service fee that does not increase regardless of the price of a ticket or type of event, Page noted. Todd Glickman, the company’s vice president of business development, also said Global Spectrum’s marketing model has turned arenas of similar size and markets into profitable operations. Glickman pointed out the Budweiser Events Center in Fort Collins, Colo., which has witnessed steady growth since it was built in 2003. “Last year we budgeted net income of $466,000 and did $577,000 in net income,” he reported. “This is our core interest,” Glickman stated. Global Spectrum’s Page said the company often conducts marketing surveys to determine what types of events a community would enjoy. The location of the Chevy Centre is advantageous in drawing crowds from Pittsburgh or Cleveland, he said. Global Spectrum’s parent, Comcast, owns the Wachovia Center in Philadelphia as well as the National Hockey League’s Philadelphia Flyers and the National Basketball League’s Philadelphia 76ers. Copyright 2008 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=2008013121454260 http://downtownyoungstown.com/article.php?story=20080131214432479 http://downtownyoungstown.com/article.php?story=20080131214432479 Thu, 31 Jan 2008 09:44:32 -0500 http://downtownyoungstown.com/article.php?story=20080131214432479#comments General News From the Business Journal By George Nelson YOUNGSTOWN, Ohio – The owners of the Rosetta Stone Café know they can draw business when events are held downtown. The challenge, they say, is bringing people in the doors when there aren’t. Proprietors George Lenahan and Greg Sop have discussed several possibilities, such as staging an interactive murder mystery or other entertainment, they said Tuesday morning. “One of our challenges is going to be trying to make our place a destination spot in and of itself when there aren’t events downtown,” Sop said. “We’re going to try to arrange some things to draw a crowd based on our entity alone.” The new restaurant, which opened about three weeks ago, held a ribbon-cutting Tuesday attended by Mayor Jay Williams and other city officials. The city administration provided incentives for the restaurant to open in the former Rite Aid building on West Federal Street. “The fact that you put this much of your time, of yourselves, of your money is something that we don’t take for granted,” Williams said as he pledged “to do everything in the city’s power to make sure the restaurant remains successful and economically vibrant.” The $590,000 project received a $97,500 grant from the city, which also waived permit fees for renovation work on the building. The restaurant has more than 50 workers, the owners said. Williams shared his observations of the environment when he first entered it a few weeks back. “It made you feel warm and welcome,” he said. The mayor, who said he subsequently returned to dine with his wife, asserted, “You will not find a finer establishment in the Mahoning Valley” The new First Ward councilwoman, Annie Gillam, who called the restaurant “absolutely beautiful”, echoed Williams’ support for the new venture. Gillam noted that she previously worked with Sop’s father and aunt. Lenahan, who began work on the restaurant about three years ago, acknowledged the project has been a blend of a lot of people’s ideas, and he thanked Sop for becoming involved. “It’s been a lot of work, a lot of time and a lot of money, but we really believe in the downtown area,” he said. A pilot with the U.S. Air Force Reserve in Vienna, he also owns Rosetta Stone Studios, a video production house. Sop, who said he and Lenahan both come downtown for events, remarked that they thought bringing a small piece of what might be found in a large city’s entertainment district could be a “catalyst to further investment in the community.” The restaurant’s manager, he also is a tool-and-die journeyman with Delphi Packard Electric and a concert ticket broker. The café, which serves breakfast, lunch and dinner, has a lounge and meeting space, and features wireless Internet. “We’ve got a lot of core items that are unique that people find fascinating, but we change the menu up significantly and have two or three items that vary from day to day,” Sop remarked. Lunch, Sop said, is “really solid,” and dinner traffic has picked up. For entertainment, the restaurant has booked Youngstown State University’s jazz ensemble trio on Wednesdays and its quartet on Thursdays. “A lot of other people have approached us about entertainment and we’re looking into some of those things as well,” he said. In addition, the WiFi access is proving to be an attraction, he said, with several members of the Mahoning Valley Professionals 20/30 Club often coming in and using the service. He predicted it would be an asset for tenants of the Youngstown Business Incubator and Turning Technologies Inc. as well as YSU students. Copyright 2008 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=20080131214432479 http://downtownyoungstown.com/article.php?story=20080126101615704 http://downtownyoungstown.com/article.php?story=20080126101615704 Sat, 26 Jan 2008 10:16:15 -0500 http://downtownyoungstown.com/article.php?story=20080126101615704#comments General News From the Business Journal YOUNGSTOWN, Ohio – The owner of the Mahoning Valley Scrappers, Alan Levin, and local businessman Bruce Zoldan announced late Thursday they are creating a joint marketing partnership with Philadelphia-based Global Spectrum, a division of Comcast Corp., to secure a contract to manage the Chevrolet Centre. “I am very pleased to be partnering with Bruce Zoldan and Global Spectrum in our efforts to make the Chevrolet Centre the successful centerpiece of the region´s entertainment and sports alternatives,” said Levin, managing partner of the Scrappers’ parent company, Palisades Baseball, in a prepared statement. “We believe that the involvement of Bruce and me and our respective organizations, which have consistently provided the community with a high quality of sports entertainment, with the broad base skills of Global Spectrum, will provide the formula for the long term success of the Chevrolet Centre.” Zoldan is the owner of B.J. Alan Fireworks Co., a national distributor and retailer of consumer fireworks, and the Mahoning Valley Phantoms hockey team, which plays its games in the Ice Zone in Boardman, which Zoldan also owns. “Global Spectrum is an exceptional company with a tremendous reputation for operating facilities throughout the U.S. and Canada,” said Zoldan. “By partnering with Global Spectrum, they will be able to utilize our database marketing, sponsorship opportunities and other established relationships we already have in Youngstown to further maximize the customer experience.” The city has received arena-management proposals from two other companies: Chicago-based International Facilities Group and Philadelphia-based SMG. Evaluations will begin next week, officials say. Global Spectrum is a business unit of Comcast-Spectacor, a division of Comcast Corp., one of the nation’s largest providers of cable television, broadband and telephone services. Comcast’s most recent financial results, published Oct. 25, show revenue increased 11% to $7.4 billion for the third quarter of 2007 as compared to $6.7 billion in the third quarter of 2006. The company’s Comcast-Spectacor unit owns the Philadelphia Flyers of the National Hockey League, the Philadelphia 76ers of the National Basketball Association, the Wachovia Center in Philadelphia and Comcast SportsNet, the 24-hour regional sports programming TV network. Other companies owned by Comcast-Spectacor include Ovations Food Services, New Era Tickets and Front Row Marketing Services. Said the chief operating officer of Global Spectrum, John Page, in a prepared statement, “Both Alan [Levin] and Bruce [Zoldan] are well established in Youngstown. By forming this partnership, we immediately have a local presence, which will provide us with a tremendous marketing and sales leverage, as we continue to seek management opportunities at the Chevy Centre. “We look forward to bringing our trademark customer service program to the residents of Youngstown and increasing the number of events at the Chevy Centre,” Page added. Should the Global Spectrum-Levin-Zoldan group be selected to manage the Chevrolet Centre, it will mark the first time that local businessmen and sports entrepreneurs help operate the arena. The Mahoning Valley Scrappers, a Class A affiliate of the Cleveland Indians, plays their home games at Eastwood Field in Niles. The team will celebrate its 10th anniversary this summer. Copyright 2008 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=20080126101615704 http://downtownyoungstown.com/article.php?story=20080126101445300 http://downtownyoungstown.com/article.php?story=20080126101445300 Sat, 26 Jan 2008 10:14:45 -0500 http://downtownyoungstown.com/article.php?story=20080126101445300#comments General News From the Business Journal YOUNGSTOWN, Ohio – The Chevrolet Centre showed a profit its fiscal first quarter, posting slightly higher numbers compared to the same period last year when it was managed by Global Entertainment of Phoenix. The municipal arena, now managed locally with city supervision, reported net income of $151,203 for the three months ended Dec. 31, or $6,881 more than the $144,323 it reported for the last three months of 2006. “We’re doing much better,” said Deputy Finance Director Kyle Miasek. “I’m comfortable the building is moving in the right direction.” The finance committee of City Council held a special meeting Thursday to discuss the financial results. Under a new policy, information related to the arena’s revenues is to be reviewed by committee members before it is released to the public. Miasek told the committee the Chevy Centre would have earned more money during the period had the arena’s main tenant -- the Youngstown SteelHounds hockey team -- scheduled additional home games during October and November. The SteelHounds, owned by local businessman Herb Washington, scheduled seven home games during the three-month period compared to 14 a year ago, Miasek said. To maximize attendance, the team chose to schedule more home dates after the high-school football season ended. As a result, event net income was down $34,503, Miasek noted. But that means more revenue generated from hockey games should be realized this quarter because most of the games are booked for weekends in January, February and March. In its first two seasons of operation, the arena has posted its strongest numbers during the first quarter, when indoor events are in demand by the public. Those numbers tend to decrease during the spring and summer months as outdoor venues compete for attendance. Last fiscal year, the arena lost $254,388. The city needs to show a year-end profit of at least $750,000 to break even and cover debt service on $11.9 million it borrowed to finish construction on the arena. The Chevy Centre’s interim manager, Eric Ryan, is working to shore up rent-based events during the summer to offset the costs of keeping the building open during the slow months. “It’s to help cover costs when the building is quiet over the summer,” Miasek said. Another critical challenge is to select acts and events that will be profitable in this market, the deputy finance director noted. Recent shows such as Weird Al Yankovic, Kenny Loggins and B.B. King fared very poorly, and the goal is to book shows that appeal to residents of the Mahoning Valley. The slight increase in revenue for the quarter can be credited both to internal changes at the arena and the exit of Global Entertainment Corp., the company that managed the Chevy Centre through October, Miasek continued. The city and Global mutually agreed to terminate the company’s management contract effective Oct. 31. With Global gone, money that would have otherwise gone to fees, commissions and salaries for the company’s employees instead went back into the building. “We’re no longer paying management fees on top of an executive salary,” he said, noting the arena saves between $5,000 and $6,000 a month as a result. Also, Miasek said, the new interim manager’s decisions have led to savings for the building. Overhead and operational expenses were down $84,650 during the quarter year over year. Next week the city plans to interview three companies interested in managing the Chevy Center full time, said Finance Director David Bozanich. Those management firms vying for the business are SMG Corp., Global Spectrum and a partnership between the Cleveland Cavaliers Operating Co. and International Facilities Group. Each group is expected to give proposals Jan. 29 and Feb. 1. “Everything is open” related to the arena’s management and development, Bozanich said. The city wants to re-examine all aspects of the Chevy Centre’s operations, which includes parking and how to generate more revenue. The city pays USA Parking Inc. $210,000 a year to provide arena patrons with free parking. The city uses money generated from a 9.5% admissions tax on each ticket sold to fund the contract. Council renewed the USA contract in November for 90 days so the city could get a better handle on how many vehicles use the five lots the company makes available for parking. However, Bozanich noted, he’ll ask council to extend the contract another six months because the city will be negotiating with a potential new management company and explore other ways to raise revenues. Discussions with any potential manager would involve all operations of the arena, including parking and ticket fees, Bozanich said. Therefore, it’s necessary to get a full scope of how many use these spaces and whether it’s cost-effective. “We need more information,” he said. The city may also consider amending the 9.5% admission tax legislation to include additional parking fees for certain events, Bozanich added. The finance director said the parking contract with USA makes sense because it keeps costs down for patrons and provides additional spaces. The city controls just 200 spots at the arena; most are reserved for club seat and suite holders. Without the USA contract, he said, patrons would pay upward of $5 per vehicle to park. A parking count shows 5,383 cars in USA’s lots in December and about 6,000 in November. Council President Charles Sammarone inquired Thursday whether the parking lot on the arena grounds could be expanded so the city could collect more revenue. “We think that the additional acreage at the site has a higher use,” Bozanich said. The land around the Chevy Centre that the city controls could be used for an outdoor amphitheater or hike-and-bike trail. “Our re-development plan also calls for more commercial development,” he stated. Moreover, downtown businesses enjoy higher traffic because the USA lots are closer to restaurants and taverns. Creating a larger parking lot at the arena could hamper business for these establishments. “I’ve talked to nearly every business downtown and they’ve told me business increases 25% to 40%” on event nights, he said. Copyright 2008 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=20080126101445300 http://downtownyoungstown.com/article.php?story=20080108202415238 http://downtownyoungstown.com/article.php?story=20080108202415238 Tue, 08 Jan 2008 08:24:15 -0500 http://downtownyoungstown.com/article.php?story=20080108202415238#comments General News From the Business Journal By Dan O’Brien YOUNGSTOWN, Ohio – An engineering and architectural firm is relocating from Canfield to downtown, bringing with it somewhere between 12 and 15 jobs. CT Consultants will lease 3,660 square feet on the fifth floor in the 20 Federal Place building, owned by the city, its economic development director, T. Sharon Woodberry, told the Board of Control Thursday. “They’re a great professional firm to add to the building,” she said. CT Consultants should be moved in by next month. The Board of Control approved the lease this morning. CT will occupy space on the same floor as Power Direct, a call center that anticipates adding 400 new jobs downtown over three years. Power Direct is expected to complete its discussions with the city and sign a lease for 15,000 square feet and be operating by April, Woodberry reported. News of the call center locating downtown came last month during a meeting of the Youngstown Initiative Committee. Woodberry said CT Consultants showed an interest in relocating in or near the downtown and the city pursued the lead. CT has not applied for city-sponsored incentives and therefore is not required to commit to target numbers related to job creation or investment. However, the company does benefit from the standard rent at the building. A five-year lease for space begins at $2.25 per square foot the first year and rises incrementally each year to a maximum of $5 per square-foot. An additional $1.75 per square foot is assessed for common area maintenance. The formula has worked, Woodberry stated. Since the city acquired the building three years ago -- then, mostly vacant -- 20 Federal Place has leased 85% of its space. Also, the board approved payment of $5,700 to MS Consultants Inc. for the survey and replat of the former LTV Steel offices on Albert Street. The city wants to exchange that property for land and a building Gasser Associates Inc. owns at the entrance of the Ohio Works Business Park off Martin Luther King Jr. Boulevard. The plan calls for Gasser to cede the former headquarters of the Youngstown Sheet & Tube Co. in exchange for the old LTV Steel building. Gasser uses the Sheet & Tube space for warehousing and storage. Woodberry said the city plans to demolish the former Sheet & Tube building and landscape the area. “It’s the final piece related to road improvements leading into the Ohio Works,” she added. Copyright 2007 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=20080108202415238 http://downtownyoungstown.com/article.php?story=20080101211921876 http://downtownyoungstown.com/article.php?story=20080101211921876 Tue, 01 Jan 2008 09:19:21 -0500 http://downtownyoungstown.com/article.php?story=20080101211921876#comments General News From the Business Journal COLUMBUS, Ohio -- The Realty Building in Youngstown is one of 11 historic renovation projects to receive awards through the Ohio Historic Preservation Tax Credit program. The total estimated value of the tax credit for the project is $1,896,280. The tax credit program, which awards refundable tax credits to owners of historic buildings who renovate and rehabilitate the buildings in preparation for commercial or residential uses, provides recipients with tax credits equal to 25% of qualified rehabilitation expenditures, said Lt. Gov. Lee Fisher. "These 11 projects will add to our statewide inventory of one-of-a-kind historic buildings that will serve new and exciting purposes and support economic development while preserving the history of the communities in which they reside," said Fisher, who also serves as director of the Ohio Department of Development. "The revitalization of these historic buildings supports not only redevelopment of these buildings, but the state's overall goal to invest in enhancing and finding new uses for existing places and infrastructure." Collectively, the 11 recipients will invest more than $84 million combined in projects to rehabilitate historic buildings for re-development. A total of 110 applications for the Ohio Historic Preservation Tax Credit program have been submitted to date, and review of the remaining applications by the Department and Ohio's Historic Preservation Office continues, Fisher said. The total project investment in the Realty Building is $8,377,622, with qualified rehabilitation expenditures estimated at $7,585,121. Other projects to receive tax credits are located in Cleveland, Port Clinton, Toledo, Cleveland, Piqua and Urbana. The Ohio Historic Preservation Tax Credit program was authorized for a two-year period beginning July 1. The program is administered by the Ohio Department of Development with assistance provided by the Ohio Historic Preservation Office of the Ohio Historical Society and the Ohio Department of Taxation. Published 2007 by The Business Journal, Youngstown, Ohio http://downtownyoungstown.com/trackback.php?id=20080101211921876 http://downtownyoungstown.com/article.php?story=20071218175943695 http://downtownyoungstown.com/article.php?story=20071218175943695 Tue, 18 Dec 2007 05:59:43 -0500 http://downtownyoungstown.com/article.php?story=20071218175943695#comments General News From the Business Journal By George Nelson YOUNGSTOWN, Ohio – A Cleveland-based telemarketing services company plans to bring as many as 400 jobs to Youngstown over the next three years, beginning with 100 in 2008. The Youngstown Initiative Committee recommended an incentive package Thursday for Power Direct to locate a call center at 20 Federal Place downtown. The new center will provide inbound and outbound call services, said T. Sharon Woodberry, city economic development director. Also recommended by the committee were incentives to keep and expand a downtown restaurant, under new ownership, and to help another downtown business relocate as part of Youngstown State University’s business school project. The incentive packages go to the Board of Control for approval. According to Power Direct’s Web site, the company serves industries that include publishing, telecommunications and technology, satellite/cable/entertainment, financial services and utilities. It also offers general business-to-business and business-to-consumer services. The incentive package for Power Direct -- which plans to lease 15,000 square feet of 20 Federal’s fifth floor -- consists of a $50,000 performance grant and waiver of permit fees. The company plans to spend $700,000 to locate there, including $300,000 to $400,000 in renovations, Woodberry said. Depending how quickly the renovations proceed, the company could be up and running at 20 Federal Place within three months, she added. And if business goes well, it could expand to occupy the entire 26,000 square feet on the floor. The space has sat empty since the shutdown of Phar-Mor Inc, Woodberry said. In its Initiative application, Power Direct stated it plans to hire 100 employees at the center in its first year and take on an additional 100 to 150 workers in both of the following two years. The positions will pay $8 per hour plus commission, Woodberry said. The company has several customers, she added, and is working on the final details of a contract with a client that the Youngstown center would serve. Power Direct’s president and chief executive officer, Daniel R. Delfino, was unavailable for comment Thursday afternoon. The Initiative program committee, whose membership includes representatives of the city administration and representatives of City Council, also approved help for the City Printing Company’s move from downtown to a building on Oak Hill Avenue. The company plans to add 10 employees over the next three years. Now on West Wood Street, City Printing was asked to move as part of the project for the new Williamson School of Business Administration, said David Bozanich, city finance director and chairman of the Initiative committee. The company plans to spend $2.8 million to relocate, including site and building improvements for a new production center with administrative offices and to buy production equipment. Under the incentive package the committee approved, the company will receive a $100,000 performance grant, a $29,000 demolition grant, a $20,000 façade grant, 75% abatement on real and personal property taxes and a waiver of permit fees. In other business, the committee approved a $66,098 performance grant, a $12,204 façade grant and waiver of permit fees for Maria’s Downtown Café, which plans to open in the Realty Building in the space occupied by the Bean Counter. Bean Counter owner Jason Logero operated there until Nov. 9. Owner Maria Frangopoulos said Logero will be the chef and will help her manage the café/restaurant/coffeehouse, which she hopes to have open by March. She also plans to expand the restaurant into the space just behind WYTV’s downtown studio in the building, and she has first option on the WYTV space once that lease expires. Since its consolidation with WKBN-TV, WYTV no longer operates its downtown news studio. The committee also approved a $20,000 façade grant for Mahoning Valley Lanes, which opened Nov. 30 in the former Gran Lanes on Mahoning Avenue. “We finished off the year very well, I think,” Woodberry remarked. Copyright 2007 The Business Journal, Youngstown, Ohio. http://downtownyoungstown.com/trackback.php?id=20071218175943695