Relief funds limit loss at Covelli Centre, Youngstown amp

JAC Management reports third-quarter deficit of $3,565

YOUNGSTOWN -- Even though only two events were held at the Youngstown Foundation Amphitheatre and one at the Covelli Centre during the third quarter, the city-owned facilities' loss for July to September was a mere $3,565.

That's because JAC Management Group, which runs the two locations for Youngstown, received money from the federal Paycheck Protection Program for the operation of the amphitheater and center to offset expenses, said Eric Ryan, its president.

The COVID-19 pandemic has devastated the entertainment industry with PPP being a lifesaver, he said.

"It has really bailed us out," Ryan said.

JAC received $353,310.59 from PPP, qualifying for 100 percent forgiveness because the two facilities are under a government mandate to close, he said.

JAC used $171,648 in the third quarter and will use the rest in the fourth quarter, Ryan said.

The two facilities should come close to breaking even this year even though it stopped holding events in March because of the pandemic and only started back with reduced-capacity and limited shows in late September, he said.

"If you consider where we could have been, it's pretty amazing," Ryan said.

Kyle Miasek, the city's interim finance director, said: "The administration is grateful that JAC qualified for PPP funding."

ALWAYS WEAK

The third quarter always has been weak for the center. But before the pandemic, JAC had projected July to September would generate an operating surplus of $91,506 because of the amphitheater, which opened in June 2019.

That would have been the most profitable third quarter, easily beating the record $35,320 made in the third quarter of 2011.

Instead, the facilities lost $3,565, and that would have grown to $175,213 if not for the PPP money.

"We expected big money in the third quarter, but the pandemic changed that," Ryan said.

The amphitheater had a Sept. 19 concert with Disco Inferno and the Youngstown Jazz Fest on Sept. 29. Both had 800 in attendance -- the most allowed at the time for the outdoor events.

The only event at the Covelli Centre was the Men's Rally in the Valley on Oct. 10. About 1,000 attended.

Also, the projection before the pandemic was a $268,308 operating surplus through the first three quarters of the year. The facilities have lost $41,985 through the first nine months.

THE FOURTH QUARTER

Four events were held at the amphitheater in October -- a local rap showcase and The Vindys, as well as two national acts, Chase Rise and Blackberry Smoke. The latter two had crowds of 1,500, the maximum currently allowed for outdoor events.

The Youngstown Phantoms junior hockey team that plays its home games at Covelli, will be the only events at the center the rest of the year, Ryan said.

The team will play about five games there and is reimbursing the center a portion of the cost of putting down the ice and for utilities, Ryan said.

The team currently can play in front of crowds of no more than 1,500 under state law.

During the shortened 2019-2020 season, the team's average home attendance was about 1,500.

JAC is unsure about events at the Covelli Centre in the first quarter of 2021 with the 1,500-person capacity, Ryan said.

"With the numbers going south again and until the country opens up on a grander scale, we're not booking events," he said. "We can't do bigger shows until the capacity gets back to normal or at least 70 to 80 percent. 2021 is up in the air. The thought process among Ohio arena operators is hopefully the vaccine comes out and they hopefully let us open up."

FOR 2021

Ryan said JAC has postponed and rescheduled a number of events this year for 2021.

"People are hoping by May, June the vaccine is out and things are back to normal," he said. "We have tentative stuff ready to go once restrictions are lifted. It's the same at every arena in the country."

Because of events at the center in the first quarter, the city has received $107,749 in a 5.5 percent admission tax on tickets for events sold there, Miasek said.

If the facilities lose money this year, it will be the first time that's happened since 2008.

The city borrowed $11.9 million in 2005 to pay its portion of building the $45 million Covelli Centre. The city still owes $6.56 million in principal after making a $900,000 payment this year. The city paid nothing in principal until 2011.

The city also borrowed $4 million in 2018 from the U.S. Department of Housing and Urban Development to pay for the $8 million amphitheater. The rest of the money came from naming-rights deals.

The city will repay the loan over 20 years, starting this year. With interest, those annual payments are $205,180.