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'We're Looking at a Business Model We Know Works'
"By George NelsonYOUNGSTOWN, Ohio -- With demand for exhibition space falling while the costs new convention centers are increasing, Jeff Kossow is glad that's not the Youngstown Convocation Center's market."We actually have very limited meeting space," said Kossow, executive director of the facility now under construction downtown. "This is really a public assembly arena."A report by the Brookings Institution's Metropolitan Policy Program shows that while cities are spending $2.4 billion annually to lure convention business and new facilities are being built around the country, attendance at such shows is at 1993 levels.Kossow, a veteran of the convention center business, said he isn't surprised at the findings. As businesses look to reduce costs, one of the first areas they target is travel and meeting expenses. In addition, modern communications such as high-speed Internet has changed the way business is conducted nowadays. "If people don't need to travel, they don't," he said. The Sept. 11, 2001 terrorist attacks also had an impact, he added. Convention centers typically go after multiple-day meeting events of professional organizations. "We're looking at a business model that we know works," Kossow explained -- a 5,000- to-7,000-seat with a Central Hockey League franchise as a tenant. While there might be some local convention events held at the Youngstown Convocation Center, "It won't be our primary focus by any stretch," Kossow said. In addition to the hockey franchise, convocation center developers plan to host concerts, circuses, rodeos, family shows and other events. Construction on the $41 million center's structural steel frame started last week. The entire project is expected to be finished this fall.The Youngstown Convocation Center is being developed by Phoenix-based Global Entertainment Corp. The construction costs are being paid for by a $26.8 million federal grant for the project. Last week Global reported the project is the prime reasons its earnings rose to $158,468, or three cents per share, during the quarter ended Nov. 30, compared to loss of $109,728 for the 2003 period. Contact George Nelson at [email protected]"