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City again borrows money to pay interest on convention center loan



Published: Wed, September 16, 2009 @ 7:55 p.m.

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


Comments

1DoctorGonzo(728 comments)posted 5 years, 3 months ago

That's almost like taking on twice as much debt in order to rectify one's current debt. Wait.

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2jeffhoef1(45 comments)posted 5 years, 3 months ago

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.

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3DoctorGonzo(728 comments)posted 5 years, 3 months ago

No way.

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4rocky14(730 comments)posted 5 years, 3 months ago

Thanks once again Jimbo.

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5leaveusalone(103 comments)posted 5 years, 3 months ago

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?

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6boardmanneedschange(364 comments)posted 5 years, 3 months ago

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.

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7oldstown(212 comments)posted 5 years, 3 months ago

The Covelli Centre needs to go the way of the Jenny. The only event I will ever attend there will be its implosion.

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8Level_Headed(30 comments)posted 5 years, 3 months ago

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"

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9Tugboat(759 comments)posted 5 years, 3 months ago

Large sign should be posted that reads - ‘This project paid for by your unborn grandchildren’.”

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10EliotNess_DC(86 comments)posted 5 years, 3 months ago

Traficant wanted the center up near Youngstown State so that it would have income from college events.

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