There’s a very real possibility that the $45 million, taxpayer financed hockey arena/entertainment complex in downtown Youngstown will not feature hockey this year. And, there’s no guarantee that the owner of the Youngstown SteelHounds, the minor-league professional team that has called the Chevy Centre home for the past three seasons, will continue to be involved.
Youngstown businessman Herb Washington says he has lost money each year and that at some point he will have to make a business decision on the feasibility of his remaining as the sole owner, of taking on partners, or even of getting out of hockey all together.
So, what does Mayor Jay Williams and members of his administration say about these and other surprising developments that surfaced last week and have a bearing on the economic viability of the arena? We’re not sure.
The mayor did not attend a news conference Thursday called by Washington, owner of several McDonald’s fast food restaurants, to discuss the SteelHounds’ being cut loose by the Central Hockey League and the options he is exploring with regard to hockey at the Chevy Centre.
One of the options is a partnership with another Youngstown businessman, Bruce Zoldan, owner of B.J. Alan Company Fireworks and the Mahoning Valley Phantoms junior hockey team. The Phantoms play at The Ice Zone in Boardman, which Zoldan owns.
He has expressed a desire to be involved in hockey at the city-owned arena.
Open dates
Given that without the SteelHounds playing in 2008-09 season there would be 32 dates between October and March needing to be filled with other events, Mayor Williams should invite Washington, Zoldan, the general managers of their teams, coaches and anyone else who has been involved in hockey in this area to a meeting in City Hall.
The purpose: To find a permanent solution to what is now an uncertain future for hockey in downtown Youngstown.
Eric Ryan, a concert promoter from Struthers hired by the city to manage the facility, says he could fill many of the 32 days with other events, if given enough time. Therefore, Ryan is hoping Washington will conclude the negotiations he intends to conduct with the International Hockey League, which consists of six teams.
Mayor Williams must clearly state what the city expects with regard to revenue generated by hockey and other events. Why? Because Youngstown government borrowed $12 million to cover its share of the construction costs — the rest of the $45 million came from the federal and state governments — and has been tapping into the general fund for the $750,000 a year it has been paying just in interest on the loan.
At a time of budget deficits, the city can ill afford to divert money from its operating fund.
The administration must find a way of making the arena financially viable so government’s share of the revenue would at least cover the debt service on the loan.
If the mayor isn’t swayed by any of those arguments for his direct involvement, perhaps this one will spur him: Washington is blaming City Hall for the SteelHounds’ predicament.
Williams has refuted the businessman’s claims, but it is clear that a face-to-face meeting is necessary to clear the air — and reassure the taxpayers that the keepers of the public purse have their best interest at heart.
Comments
OldManGrump wrote:
"Now what does Youngstown do? Try to raise income taxes by using a blackmail water JEDD for Austintown & Boardman."
Let's not forget that the city admitted in a June 03 Vindy article(regarding YFD buyout plan)that they need to make an additional $4m or lose 60 people.
I have been active with the Chevy Centre for a while now and what I see is that there is very little hope with the new Local Management. He has been there since November the biggest question is when has he done? In several active member of the Centre the opinion NOTHING is the answer he hasnt been scheduling any events. Most of the events where pre scheduled before his placement. If he is a promotor and can get entertainment for his personally owned vendue in Struthers then he should be able to help with assisting in booking more events at the Chevy Centre. I believe that Having Mr. Ryan be part of the Centre is a conflict of interest. When the mayor was asked what was the reason in making him a perm. part of management he stated that it was because of when he showed to the city Glodal was doing wrong. So my opinion is any one with business sence could have done that and for less then the $6000 a month that the city will be forking out for the local management company. There is alot of other issues with this management that I can share too, Discrimination cases, work not being given to the employeees that earn it and giving it to people that have stolen, wine about having to work and not showing up for hours. When I am not sure of the policy with all companies but if you are a safety issue, an attendance issue and wine about doing your job you are usually not the one to be rewared with more work Infact there this a supervisor that with very rude and hassle at work and they let me be there with out questions. Having the union come in after 2 years and pushing good workers out of a job. The union is doulbe to triple times the cost of what they pay the employees that have been at the centre since opening day. One of the issues with this is we need to cut cost to be about to save the building that Jim Trafficant worked hard at getting the grants and funds to get for us to have this enjoyment for our city. With the money that new management or the city is wasting by paying out to use a union we could be usint to get this building out of debt and/or to booking more entertainment. I welcome anyones comments of suggestion. Thanks and God Bless