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YOUNGSTOWN — City-owned Covelli Centre, Youngstown Foundation Amphitheatre and Wean Park had a poor second quarter with an operating loss of $88,333.
Between April and June, entertainment facilities performed worse only three other times: at the start of the COVID-19 pandemic in 2020, and in 2006 and 2007, the center’s first two second quarters and the amphitheater’s first few Years and parks open.
It could have been worse with an initial budget loss of $181,916 for the quarter, said Eric Ryan, president of JAC Management Group, which operates centers, amphitheaters and parks for the city.
“We don’t have a lot of activity,” he said. “We lowered our expenses. We performed much better than expected this quarter.”
The center opened in October 2005, and the second quarter has historically been the most volatile. The amphitheater and park opened in 2019. Of the 17 second quarters, 10 posted operating losses and 7 posted surpluses.
Ryan also said there was a “seasonal event” in the recent second quarter, with an additional $40,000 for renting a temporary ice factory, which makes and freezes ice at the center, when the existing ice fails.
A performance at the center by comedian Katt Williams, which drew about 5,000 people, was the most attended event of the season, Ryan said. Overall, the complex hosted 21 events in the second quarter.
Profits at these facilities were $4,397 as of June 30, due to operating surpluses in the first three months of the year. The budget calls for a deficit of $131,542 for the first six months.
The facilities also generated $80,108 for the city from a 5.5 percent gate-entry tax in the second quarter. The entrance tax brought in $123,130 to the city in the first six months of the year.
“They’re doing better than they budgeted,” said Kermyasek, the city’s finance chief. “All the money will be made in the third and fourth quarters.”
Looking to the future
Ryan said he expects to hit a budgeted operating surplus of at least $239,045 in the second half of the year.
The Luke Bryan concert at Wean Park on July 16 was a huge success, “propelling the third quarter in a lot of ways,” Ryan said. “It’s definitely going to help with the revenue collection. That’s going to be important. We’ve got some other shows that are doing well. We’re going to have a good third quarter and a good fourth quarter.”
September looks to be a successful month, Ryan said, with a number of concerts scheduled, including Lee Brice, the Lamb of God and Ghost.
Two “big shows” planned for the fourth quarter have not been announced, he said.
The city-owned facility has an operating surplus of $19,525 in 2021 as events other than Youngstown Phantom hockey games do not resume until June of that year.
It had an operating surplus of $10,915 in 2020, and after mid-March of that year, the center only hosted Phantoms games.
The two years were largely supported by a federal grant program to help closed establishments impacted by the COVID-19 pandemic.
debt
The city borrowed $11.9 million in 2005 to cover part of the cost of its $45 million center. Most of the funding comes from two federal grants.
Youngstown made a $1.7 million principal payment in June, the largest payment ever.
The city owes $3.4 million in principal and plans to split the amount equally in 2023 and 2024 to eliminate the debt.
The city paid only interest until its first principal payment in 2011.
In 2018, Youngstown also borrowed $4 million from the U.S. Department of Housing and Urban Development to pay for the $8 million amphitheater, which opened a year later. The rest of the funding comes from naming rights deals.
The city will repay the loan over 20 years.
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