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City again borrows money to pay interest on convention center loan
YOUNGSTOWN — For the fifth consecutive year, the city is borrowing money to cover the interest on the $11.9 million it borrowed to help fund the Covelli Centre’s construction costs.
To date, the city hasn’t paid a penny toward the $11.9 million principal.
But Mayor Jay Williams and Finance Director David Bozanich said that could change in the near future.
“We’re hopeful in the next two to three years we’ll be able to borrow money long-term” to pay off both the principal and the interest, Bozanich said.
The city would take between 20 and 25 years to pay back the principal and interest on its portion of the construction costs, he said.
Most of the $45 million construction cost, $26.8 million, came from a federal grant obtained by then-U.S. Rep. James A. Traficant Jr. in 2000. The center opened in October 2005.
City council unanimously voted today to borrow money at a interest rate of 5.27 percent on the $11.9 million debt.
Since it first borrowed money to cover the debt, the city has paid more than $3 million in interest alone.
The city will pay about $700,000 in interest over the next 12 months.
For the complete story, read Thursday’s Vindicator or Vindy.com
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Comments
Why am I not surprised? At this point the city's problems are laughable. I mean, how bad can it really get?
What do they even use the Chevy Centre for anyhow except for the occasional concert? The Steelhounds folded, the Thunder folded....
I would like to personally thank all of the politicians who worked so hard to create this disaster. You just enslaved a decaying town to paying for yet another mistake with interest.
Send the bill to Traficant.
That's almost like taking on twice as much debt in order to rectify one's current debt. Wait.
Doc, your statement sounds oddly familiar to what the federal government is doing under Obama
Wasn't Jay a banker? That was before he started spending other peoples money. Instead of fighting residency and funding lucky penny contests shouldn't he pay the bills first.
No way.
Traficant can give his speech to let us know that he's running for Congress from the Chevy Center that he had built to bring jobs to Youngstown. Jobs in Youngstown. LOL.
The gift that keeps on giving. The best solution for this white elephant is to burn it down.
Thanks once again Jimbo.
Note to Vindicator: $26.8 million is only 60% of $45 million. This hardly constitutes "MOST" of the construction costs. No wonder this area is in such economic trouble....nobody can add?
PEANUTHEADS PLAN IS TO BORROW MONEY TO PAY FOR MONEY THEY HAVE ALREADY BORROWED? HOW IN GODS NAME IS THAT A SOLUTION? LADIES AND GENTLEMEN, YOUR MAYOR IS A FRAUD.
The Covelli Centre needs to go the way of the Jenny. The only event I will ever attend there will be its implosion.
Leaveusalone...
Defintion of "most"
1. in the greatest quantity, amount, measure, degree, or number
2. in the majority of instances:
3. greatest, as in size or extent:
In all 3 cases, 60% would be "most"
I'm not saying you are incorrect, just stating that 60%, by defintion, is "most"
Large sign should be posted that reads - ‘This project paid for by your unborn grandchildren’.”
Traficant wanted the center up near Youngstown State so that it would have income from college events.