Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Consultant to Prep Covelli Centre for Sale, Lease
YOUNGSTOWN, Ohio – The city contracted with a consultant today to work with it on a potential sale or lease of the Covelli Centre.
The Board of Control approved the consulting services agreement with PA Sports & Entertainment Group Inc., to develop specifications and bid documents for lease or sale of the city-owned arena, which opened in 2005. PA Sports & Entertainment, which has offices in Cranston, R.I. and Downington, Pa., will be paid a monthly consulting fee of $10,000 not to exceed $50,000, plus expenses, according to the agreement.
The company, which provides public assembly facility consulting and related services, estimates that it will complete its contract in five months.
The contract represents the next step in the city's efforts to divest itself of the arena, which it built in part using funds from a federal grant secured by former U.S. Rep. James A. Traficant Jr. The city borrowed $12 million to fund construction of the $45 million building as well.
Mayor Charles Sammarone said in April he wanted to explore a sale or lease of the arena. Though it is no longer running in the red operationally as it did in its initial years under the management of Global Entertainment Corp., profits have not been enough to do much more than satisfy the debt service on the loan.
Under executive director Eric Ryan, the Covelli Centre has played host to top acts including Elton John, Barry Manilow and, most recently, Bob Dylan.
Copyright 2012 The Business Journal, Youngstown, Ohio.