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City Seeks to Extend Covelli Centre Naming Rights
YOUNGSTOWN, Ohio – The city Board of Control this morning will consider a one-year extension of its naming rights agreement with Covelli Enterprises for the Covelli Centre.
Under the agreement between the JAC Management, which operates the arena on behalf of the city, and Covelli Enterprises, a Warren-based franchisee of Panera Bread and O’Charley’s restaurants, the city would receive $175,000 for the one-year extension, said Eric Ryan, president of JAC Management and executive director of the Covelli Centre.
The $175,000 is up from the $120,000 the company paid annually for naming rights under the prior agreement, which expired in May. Since that initial 3-year deal “We really put the building on the map, so to speak,” and Covelli realizes that, Ryan said.
“It’s a nice boost to our financials,” he added.
The city insisted on the one-year deal because it is exploring the feasibility of selling or leasing the building, Ryan said. In September the city approved a consulting services agreement with PA Sports & Entertainment Group Inc. to develop specifications and bid documents for lease or sale of the Covelli Centre.
A competing bid of $210,000 was submitted by Bruce Zoldan, CEo of B.J. Alan Co., which owns the Youngstown Phantoms hockey team that makes the arena its home ice. According to published reports, the city decided against entering into negotiations with Zoldan.
The city developed and owns the $45 million arena, which opened in 2005 built in part using funds from a federal grant. The city still must repay funds it borrowed to finish construction of the building. JAC has reversed the steady stream of red ink since taking over management of the building in 2007 and booked major acts including Elton John, Barry Manilow and Bob Dylan, but the building has been unabel to generate revenue sufficent to do much more than cover the annual debt service on the loan the city took out.
JAC and the city have a separate consulting services agreement with Covelli Enterprises to help with food service operations there. Covelli Enterprises is not paid to provide the service.
“We’re working on more competitive, new products,” as well as working on the Taste of Youngtown program, which will provide area vendors opportunities to sell foods there, Ryan said. This year, Ryan estimates the city will make an additional $50,000 on food and beverage operations. Earlier this year the city severed its relationship with Centerplate Inc., which previously managed the Covelli Center’s food service operations.
Copyright 2012 The Business Journal, Youngstown, Ohio.