YOUNGSTOWN — Despite being slowed by the COVID-19 pandemic for most of 2021, the city-owned Covelli Centre and Youngstown Foundation Amphitheatre finished the year with a $19,525 operating surplus.

“To get through that year with the challenges we faced, it’s a miracle we made money,” said Eric Ryan, president of JAC Management Group, which operates the two facilities on behalf of the city. “We’re very happy with it.”

The finances of the two facilities were assisted by two key factors: a record-breaking third quarter with a $128,294 operating surplus after the state eliminated COVID-19 pandemic restrictions and a $419,878 federal Shuttered Venue Operators Grant.

The fourth quarter lost $86,639 with only seven performances of Disney on Ice, a Joe Bonamassa concert and Youngstown Phantoms games on the schedule at the Covelli Centre during the final three months of last year.

“It’s taken time for the arena to recoup,” Ryan said. “It’s starting to come around for our size. The bigger arenas are getting the bigger shows first. Arenas our size have to wait that out. We make our money off the big shows, and that’s taking time. The outdoor shows we knew we could do, but we didn’t know about indoor events.”

When the state lifted crowd restrictions on June 2, 2021, Ryan said, “Everyone in the state and nation were scrambling to get shows. We got the outdoor shows for the amphitheater, but indoor has been tough.”

The facilities were projected to have a $458,137 operating loss for 2021.

“We’re pleased the city didn’t have to use any money to offset operating losses,” said city Finance Director Kyle Miasek.

The center also had to spend $40,000 for repairs to its ice plant and for rentals to keep it operating, Ryan said.

JAC currently is negotiating with the Phantoms for a new contract, Ryan said.

TWO TOUGH YEARS

The facilities had a $10,915 operating surplus in 2020, when they were closed for about nine months as a result of the pandemic. The surplus largely came from a $353,310.59 federal Paycheck Protection Program grant to cover employee payroll and utility costs.

“We were able to navigate through the two most challenging years in the history of the entertainment industry without financial losses to the city,” Ryan said.

The facilities have had an annual operating profit since JAC took over management of the Covelli Centre in 2008. The center opened in October 2005 while the amphitheater opened in June 2019.

The best year was 2014 with a $485,234 operating surplus. The second best year was 2016 with $435,183.

During 2022, Ryan said: “We’ve been very busy, but we haven’t had the big blowout concerts. We have big stuff on the horizon for the third and fourth quarters. I look for a much better financial year in 2022” than the last two years.

Also, the amphitheater and center generated $117,956 for the city from a 5.5 percent admission tax on tickets last year, Miasek said.

DEBT

The city borrowed $11.9 million in 2005 to pay its portion of building the $45 million center. Most of the funding came from two federal grants.

Youngstown council agreed March 16 to pay $1.7 million toward the principal — the largest such payment ever.

After that payment is made in May, the city will owe $3.4 million toward the principal with plans to evenly split that amount over payments in 2023 and 2024 to wipe out the debt.

The city paid nothing in principal until 2011 — only interest during those years.

The interest rate was high in those early years such as in 2007 when it was 6.88 percent. The city paid $818,720 in interest that year.

In comparison, the interest rate in 2020 and 2021 was 1 percent.

It should be between 1 and 2 percent this year, Miasek said. A 2 percent rate would cost the city $68,000 in interest 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. The rest of the money came from naming-rights deals.

The city is repaying that loan over 20 years.

By the numbers

Here are the annual operating losses and surpluses for the Youngstown-owned Covelli Centre and Youngstown Foundation Amphitheatre. The center opened in October 2005 while the amphitheater opened in June 2019.

2006: $541,298 loss

2007: $247,510 loss

2008: $310,435 loss

2009: $153,950 surplus

2010: $110,434 surplus

2011: $126,314 surplus

2012: $320,787 surplus

2013: $256,098 surplus

2014: $485,234 surplus

2015: $372,954 surplus

2016: $435,183 surplus

2017: $2,247 surplus

2018: $256,818 surplus

2019: $412,684 surplus

2020: $10,915 surplus

2021: $19,525 surplus