Published: Thursday, October 4, 2007
Interim hiring OK'd for Chevrolet Centre
Council declined to approve a proposal to change its parking contract.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN — Seeking to end an agreement with the company managing the Chevrolet Centre, the city administration now has the authority to hire an interim replacement if one is needed.
City council unanimously approved legislation Wednesday to authorize the board of control to:
U Ask companies for their qualifications to temporarily manage the city-owned facility.
U Select the best qualified entity and negotiate an agreement to run the center for up to 120 days.
U Take the same action as above, but with a company to run the center for an interim period of time. The legislation doesn't give a time frame for an interim deal and permits the board to have the option of entering into a long-term management agreement with an entity.
The legislation was recommended by Mayor Jay Williams, who serves on the board of control with Finance Director David Bozanich and Law Director Iris Torres Guglucello.
There are no immediate plans to hire a company to run the center, Williams said. But the city is talking to others about managing the facility.
The legislation provides the city with options as it attempts to end its contract with International Coliseums Co. to run the Chevrolet Centre.
Lawsuit
ICC, a subsidiary of the Phoenix-based Global Entertainment Corp., filed a federal lawsuit Sept. 19 claiming Youngstown violated its management contract costing the company money.
ICC is refusing to pay $600,000 it had previously guaranteed the city as part of a contract restructuring deal last year to manage the financially struggling facility. ICC still wants to run the center and continues to do so.
The city had told ICC it was going to file a lawsuit to end the management deal, claiming a breach of contract, Williams said. ICC's lawsuit was a pre-emptive strike against the city, he said.
City officials are dissatisfied with ICC's failure to not turn a profit at the center and with its inability to meet its financial projections for the building. Also, Williams said ICC has done a poor job managing the center, and no longer wants to work with the company.
The city and ICC are talking about the lawsuit, said Williams, who added that he hoped an agreement could be reached to end the contract and the legal action.
A recommendation from Williams to alter a contract with USA Parking Systems Inc. of Cleveland for the use of about 2,400 spaces at parking decks and lots for those attending center events wasn't greeted as warmly by council Wednesday.
Council declined to approve that recommendation and plans to discuss it further before taking action.
As part of the contract, USA is charging about $220,000 for a 12-month period beginning Monday for the center to use its parking spaces. The cost during the previous 12 months was about $215,000.
Parking contract
The city and ICC signed a 10-year parking contract with USA Parking in October 2005. Williams wanted council to allow the board of control to eliminate ICC from the parking contract, retroactive to Monday.
The city is gradually replacing parking and facility fees of $3 to $3.50 a ticket with a flat 9.5 percent admission tax. The fees go to the center while the admission tax goes directly to the city, something ICC strongly objected to in its lawsuit.
The city shouldn't be involved in the parking business, said Councilman Rufus Hudson, D-2nd, and should let the marketplace dictate the cost.
Williams disagrees, saying those who attend events at the center like that they don't have to physically pay someone to park in the USA decks and lots.
"From the very beginning, parking was an issue to make the center more attractive," he said. "This formula has worked. It's easier, quicker, cheaper and more beneficial to those who come" to the center.
skolnick@vindy.com
Thursday, October 4, 2007
Council declined to approve a proposal to change its parking contract.
By DAVID SKOLNICK
CITY HALL REPORTER
YOUNGSTOWN — Seeking to end an agreement with the company managing the Chevrolet Centre, the city administration now has the authority to hire an interim replacement if one is needed.
City council unanimously approved legislation Wednesday to authorize the board of control to:
U Ask companies for their qualifications to temporarily manage the city-owned facility.
U Select the best qualified entity and negotiate an agreement to run the center for up to 120 days.
U Take the same action as above, but with a company to run the center for an interim period of time. The legislation doesn't give a time frame for an interim deal and permits the board to have the option of entering into a long-term management agreement with an entity.
The legislation was recommended by Mayor Jay Williams, who serves on the board of control with Finance Director David Bozanich and Law Director Iris Torres Guglucello.
There are no immediate plans to hire a company to run the center, Williams said. But the city is talking to others about managing the facility.
The legislation provides the city with options as it attempts to end its contract with International Coliseums Co. to run the Chevrolet Centre.
Lawsuit
ICC, a subsidiary of the Phoenix-based Global Entertainment Corp., filed a federal lawsuit Sept. 19 claiming Youngstown violated its management contract costing the company money.
ICC is refusing to pay $600,000 it had previously guaranteed the city as part of a contract restructuring deal last year to manage the financially struggling facility. ICC still wants to run the center and continues to do so.
The city had told ICC it was going to file a lawsuit to end the management deal, claiming a breach of contract, Williams said. ICC's lawsuit was a pre-emptive strike against the city, he said.
City officials are dissatisfied with ICC's failure to not turn a profit at the center and with its inability to meet its financial projections for the building. Also, Williams said ICC has done a poor job managing the center, and no longer wants to work with the company.
The city and ICC are talking about the lawsuit, said Williams, who added that he hoped an agreement could be reached to end the contract and the legal action.
A recommendation from Williams to alter a contract with USA Parking Systems Inc. of Cleveland for the use of about 2,400 spaces at parking decks and lots for those attending center events wasn't greeted as warmly by council Wednesday.
Council declined to approve that recommendation and plans to discuss it further before taking action.
As part of the contract, USA is charging about $220,000 for a 12-month period beginning Monday for the center to use its parking spaces. The cost during the previous 12 months was about $215,000.
Parking contract
The city and ICC signed a 10-year parking contract with USA Parking in October 2005. Williams wanted council to allow the board of control to eliminate ICC from the parking contract, retroactive to Monday.
The city is gradually replacing parking and facility fees of $3 to $3.50 a ticket with a flat 9.5 percent admission tax. The fees go to the center while the admission tax goes directly to the city, something ICC strongly objected to in its lawsuit.
The city shouldn't be involved in the parking business, said Councilman Rufus Hudson, D-2nd, and should let the marketplace dictate the cost.
Williams disagrees, saying those who attend events at the center like that they don't have to physically pay someone to park in the USA decks and lots.
"From the very beginning, parking was an issue to make the center more attractive," he said. "This formula has worked. It's easier, quicker, cheaper and more beneficial to those who come" to the center.
skolnick@vindy.com
Thursday, October 4, 2007
Seeking to end an agreement with the company managing the Chevrolet Centre, the city administration now has the...
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