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Zoldan to Hudson: 'Your Audacity Is Insulting'
YOUNGSTOWN, Ohio -- The millionaire businessman who led the charge to build an arena downtown -- and invested $3 million to study its feasibility then backed off after city council seized control of the project -- today fired back at the councilman who told him, "Put up or shut up."Bruce J. Zoldan, the president of B.J. Alan Co., the fireworks manufacturer and retailer that makes it headquarters downtown, released to the press a copy of a letter sent yesterday to Rufus Hudson, who represents the city's second ward. "I have considerably more invested in the city of Youngstown than most," Zoldan wrote. "Your audacity in resorting to demagoguery and telling me to 'put up or shut up' is insulting."At last week's council meeting, Hudson blasted Zoldan for his comments published in the MidDecember edition of The Business Journal (available to print subscribers only) that questioned the project's business plan and urged the business community not to buy advance tickets or sponsorships until his doubts are erased. "The success of the project depends on selling these seats," Hudson fumed.Zoldan also owns the Ice Zone in Boardman, where his Youngstown Phantoms hockey team plays its home games.The city councilman also blasted The Business Journal for reporting Zoldan's concerns about the city's intent to borrow and shift funds millions to complete the $41 million project, which began in 2000 when former U.S. Rep. James A. Traficant Jr. secured $26.8 million in federal funds. Zoldan's letter to Hudson posed 14 questions for which he demanded answers. "Providing such valid and cogent answers is the only way to get me to "shut up." You will not get me to "shut up" by shallow grand-standing," Zoldan declared. The following is the full text of Zoldan's letter:I read with interest your angry remarks directed toward me in the Youngstown Business Journal, and, quite frankly, I am surprised that you would attempt to stifle my criticism and public comment. I have never gotten personal with you or any other member of the City of Youngstown government with my discussion about the development of the Youngstown Convocation Center project, and I am, therefore, puzzled why you would attempt to vilify me, instead of directing your comments to the issues.I have never questioned your motives in supporting the purchase of the land between the bridges without so much as a scintilla of negotiation as to the price. You have never publicly commented on this issue. Are there any other non-negotiated commitments that have been made on this project of which the public is not aware?This is America, and I, like all other enfranchised citizens, have the right to criticize my government; particularly a government that I so generously support with my business located in Youngstown. I pay the 2.75% city income tax, as do all my employees. I pay many other taxes that go to fund the governmental operations that I support in some instances and criticize in others. The funds I pay in taxes are the very funds you spend.If I am unable to be a full citizen participant in governmental affairs, perhaps you would rather that I leave Youngstown and go to a community where my support and participation will be welcome. If the convocation center project succeeds, I will be a direct beneficiary. I fear that the mistakes made to date jeopardize that potential success, and I feel it is incumbent on me to do what I can do to see those errors rectified.That fact is, whether you are willing to acknowledge it or not, there have been many actions taken with respect to the convocation center project that could have been different and improved, and there are many unanswered questions relative thereto. To suggest a few:1. Why was there no support by the Youngstown city government for the independent board initially created to develop and operate the project?2. Why is Youngstown one of the few cities in the United States what will not operate a project like this through an independent board comprised of disinterested business people, the very same people you are now attempting to entice into buying suites and sponsorships in a facility with a very weak business plan?3. Why purchase the land between the bridges for the asking price without any effort to negotiate a reasonable price?4. Why spend thousands of dollars consulting with Tom Chema on the best location for the project, then disregard his conclusions without even meeting with him to get his first-hand input?5. Why purchase the land between the bridges without first understanding the impact of the sewer line that forced the relocation of the project to the South Avenue side of the land?6. What happened to the concept of private investment in the project?7. If there was to be no city of Youngstown investment in the project, why commit $2,000,000.00 in Water Department funds? Don't you consider that to be Youngstown taxpayer money?8. If there was to be no city of Youngstown investment in the project, why are we now hearing about "bridge financing" that will necessarily involve the city lending its credit to the project? Don't you consider that to be Youngstown taxpayer money?9. How much is the total that the city of Youngstown is actually going to be exposed for in the financing of this project? Be completely open and honest with the public on this issue.10.Why give the contract to operate the facility to an out-of-state group with no ties to the community and with no real bidding process?11. Why give the contract to operate the facility to an out-of- state group that will invest nothing in the project?12.Why give the sweetest deal of a lifetime (all of whose 4% gross royalty profits from the operation of the project will be used and invested out of our valley) to an out-of-state group that took the initial $700,000 you paid them to manage the construction of the project and invested it in a deal that provided no benefit to Youngstown?13. Who convinced Herb Washington to invest the $1 million that will be paid to a hockey league based in Texas-New Mexico that is owned by the developer/construction manager, which funds will immediately leave the city of Youngstown and benefit the Texas-New Mexico based hockey league? Wouldn't that $1 million have been better utilized by Herb to market and promote the Youngstown team in a more localized marketing footprint?14. Who made the decision to require that paltry $300,000 performance bond by the out-of-state facility manager to secure the operation of the $41 million facility?The reality is, Mr. Hudson, that there remain many unanswered questions as to the conduct of the city of Youngstown on this project. My interest is to make sure that city money, money that comes at least in part from the taxes I pay, is spent wisely and in a manner that will maximize the benefit to out-of-staters who are putting no money into the project.I have considerably more invested in the city of Youngstown than most, and irrespective of that fact, I do have the right to voice my opinion, no matter what you say. Your audacity in resorting to demagoguery and telling me to "put up or shut up" is insulting. I believe that I "put up" when I originally invested in the city of Youngstown in 1985. Since then, I have continued to "put up" by expanding my investment in Youngstown and by expanding the work force that I employ in the city of Youngstown. Is that enough, or do you want me to "put up" more before I have the right to comment on the actions of the city of Youngstown government?How much has Global Entertainment "put up" in the same vein? How many others have expanded their investment in the city of Youngstown like I have? Conversely, how many others have "cut and run" from the city of Youngstown, as opposed to remaining and expanding their investment in our struggling community? I hope you get my point.As an elected official in this city, you have the obligation to respond to my criticisms and questions in good faith and provide the answers that you owe to the citizens and your constituents. Providing such valid and cogent answers is the only way to get me to "shut up." You will not get me to "shut up" by shallow grand-standing.I look forward to hearing your answers to the questions I have raised in this letter and elsewhere."