YOUNGSTOWN — The city-owned Covelli Centre, Youngstown Foundation Amphitheatre and Wean Park had a modest $15,847 surplus in the second quarter — though it was much better than the $156,777 loss it was projected to have for the three-month period.
“We significantly outperformed budget,” said Eric Ryan, president of JAC Management Group, which operates the entertainment facilities for the city. “The second quarter has typically been the most challenging — along with the third quarter. But any time you can do so many great shows in a quarter, it’s a success.”
In the 18 total second quarters since the Covelli Centre opened in October 2005, 10 had operating losses and eight showed surpluses. The amphitheater and park opened in 2019.
Also, this was the first time since 2019 that the facilities had a surplus in the second quarter. Just last year, they reported an $88,333 loss.
For the period between April and June, the Covelli Centre had two 5,000-seat sellouts: an Alice Cooper concert and the game that had the Youngstown Phantoms, the hockey team that plays at the center, win the Clark Cup championship.
At the amphitheater, the three 5,000-seat sold-out concerts were from REO Speedwagon, Parker McCollum and the Doobie Brothers.
The city had budgeted a $156,777 loss for the second quarter for the entertainment complex, which ended up with a $15,847 operating surplus.
Despite the nine sell-outs, the surplus wasn’t high in part because of expenses related to the opening of the amphitheater, maintenance of the park and repair work to the center, Ryan said.
Also, the facilities generated $70,617 for the city from a 5.5 percent admission tax on tickets during the second quarter, city Finance Director Kyle Miasek said. The tax brought $76,701 to the city in the first quarter.
“It was a fantastic quarter,” Miasek said.
MOST PROFITABLE YEAR?
During the first quarter of the year, the Covelli Centre, the only one of the three facilities to have events during those three months, had a record-breaking operating surplus of $382,334 largely thanks to five sold-out shows. The first quarter surplus was more than double the $170,255 surplus budgeted for the three-month period.
The third quarter is budgeted to make about $58,000 and should be close to that, Ryan said.
It featured the Y-Live show on July 29 that attracted about 20,000 people to see Kid Rock, Lee Brice and Buckcherry. Y-Live was the single most successful and profitable show for the facilities last year, featuring Luke Bryan, and will be the same again this year, Ryan said.
The fourth quarter is budgeted to make about $104,000 and “we should be in the ballpark for that,” Ryan said.
“We hope to be at the budgeted amounts for both quarters,” he said.
If that occurs, the complex would have its most profitable year. The best year was 2014 with a $485,234 operating surplus.
DEBT
The city borrowed $11.9 million in 2005 to pay its portion to build the $45 million center. Most of the funding came from two federal grants.
The city owes $1.7 million on that loan and will pay it in full next January, Miasek said.
The city paid only interest until its first principal payment in 2011.It made $1.7 million principal payments in both 2022 and this year.
Youngstown also borrowed $4 million in 2018 from the U.S. Department of Housing and Urban Development to pay for the $8 million amphitheater and park, which opened a year later. The rest of the money came from naming-rights deals.
The city is repaying that loan over 20 years.
