US GP in Austin Discussion and Speculation...

exactly. oh well.........me thinks we'll be seeing A LOT more activity soon.......

 

Now you've gone too far! Leave the unicorns out of this sordid mess.
I speak to them regularly and they're not at all happy with the association.

 

You have a great attitude VIZSLA! I was just having a little fun with your choice of words. In project management terms, you want to know what the target dates are for various milestones. Then we can tell if they are on schedule. Unfortunately, even if we knew, we still wouldn't know. If they miss a target date they can still make it up if there is 'float' in the schedule for that item. If there isn't (they run up against a critical item), then something has to give and (largely) accepted project management theory says there are three elements: time, resources, and quality. So, if they are behind on time (schedule), at least one of the other two has to also change. They can make it up by either throwing more resources at it, reducing quality, or a combination of both. Otherwise, they're late.

For this project let's say a hurricane comes through the area (as they did a few years ago) and dumps horrendous amounts of rain on exposed grade before the track is paved. They can either throw resources at it by hiring more labor and equipment to aeriate the grade (more resources), or pave over the soggy grade, later getting sagging and cracking, and maybe even sponginess if water is trapped, thus reducing quality. Another way of reducing quality is to eliminate amenities from the project, saving time and resources.

 

State committee votes to retract Formula One Austin $25M incentive

http://www.bizjournals.com/austin/news/2011/04/14/senator-votes-to-retract-formula-one.html?ed=2011-04-14&s=article_du&ana=e_du_pub

 

Okay you said they need a powerstation, you still weren't fully correct there. You were also incorrect in making a random statment about investors.

You contradict yourself when half of your posts are centered around "now this is what I think... these numbers are completely hypothetical... well USF1..." The only thing you have is your picture of Korea and Abu Dhabi, which as I said does not tell the whole story.

Whenever someone brings forth evidence or an argument (whether it be full of unicorns like your stories and bridges) you immediately dismiss it as an excuse. It goes both ways, people may make silly excuses (of which there hasn't been in quite a few pages now) but your fairlytale Mike knows what's best mentality is just as off base.

You contribute to the unicorn side as well, nothing you have is as hard evidence as you make it out to be because you just have no idea what is going on (yes I know you have a picture and am heart broken over USF1)

I'll give you this, you have an extreme talent for rhetoric. You use the english language beautifully, whether that's disguising your bull or not.

 

I met a unicorn the other day, and he told me all was well. I even took a picture for proof, but me thinks you won't believe it anyways.

 

I'll be at the Senates committee hearing on finance tomorrow. Maybe they'll say something about this

 

Wait till I see that tired old sportscaster over on Kirby, in a restuarant....

He's gonna have a 'tough time" making it out the door, with out 'tripping'.....

 

aye, politics.

bet it has to do more with the publics misconception on how the events trust fund works, and perry and comb's bickering over Amazon sales taxes, than the legitimacy of the project......

 

You better get out and petition district 5 Tex!

 

All true. There is no way anyone inside or out can say for sure how this will turn out.
Things are always go more easily when you have the money. Trouble is no one's sure that they have the resources to throw at the problems. In fact today's news seems to indicate that they're loosing funds instead of gaining them.

BTW For those who didn't follow the USF1 debacle on F-Chat be aware that at this point in their saga the skeptics were being much harsher on Windsor & Co. As far as I've seen no one's referred to the Austin bunch as clowns, or worse.

 

They'll be busy soon enough, I hear they've all been rented for the '12 election

 

It will be a lot of talking but not much else I can assure you of that

 

What was I wrong about regarding the power station? I said there would be extensive electrical (and other) infrastructure needed, Tex said they could string a few high-kV lines from existing supplies. Turns out they are building a megawatt substation to handle the load, so it's extensive by any definition, no?

I believe the only thing I was incorrect about was that Hurley had more $$ than Red, although I am not sure it changes my point, which was that both the AustinGP and USF1 both had big money investors, and (thus far, one) still failed.

My comments on the likelihood of the race happening are not just speculation... they are also based on observation. I've said it a few times - if you were Warren Buffet and had $1 billion in a bank account to make this project happen, what would the Austin F1 site look like *today*? Would it look like it does? Or would it look like the pics of Korea/Yas, etc?

My experience is in business. I feel I know how these things work, and I've been on both sides of the equation. There is a definite smell in the air... it's the smell of death . I would wager that my guess on how things went down is pretty close to the mark. Red is the "lead investor"... he brings something much more than just his $$ to the table. He brings his name. There's no doubt he bought into the project, but a guy of his stature doesn't need to finance it. That's not how he makes his money. He's a regional Warren Buffet. People hear he's involved, and they want to be involved too, because Red is a cash generating machine. But when you are talking $400mm, you're talking savvy investors. And savvy investors do their due diligence. What is happening right now is a sales process. Red gets a large ownership stake for a relatively minor investment. His brand brings other investors. Once the project is funded, we will see an effort that looks like Yas or Korea of Malaysia. We are not seeing that for the simple reason that it's not funded.

What possible other reason is there for so little being done on-site? All that is restricted is vertical construction pending agreement on the road build-out costs. Why is half the free construction equipment in Texas not on site doing everything other than vertical construction?

Because it's not fully funded.

There will be a point and time when everyone comes to the same realization that Simon and I reached a while back, and that Dave has reached, and Andreas is in the process of reaching. It won't be without pain, but we'll be here for support

 

NOW they are in trouble....

 

Now we know why they were soliciting constituent appeals last week.

 

This should really be fun to watch (unless we lose a race track and F1 race in the process). My guess is that you have some politicians heading for high ground because they don't want to be accussed of supporting F1 racing while the state is trying to close a large budget gap with layoffs. Theoretically, the fund the money for F1 is coming from is supposed to support projects that create jobs and taxes, thus paying for themselves (tax increment financing). If this money was going to help build a car factory, they probably wouldn't be complaining. Otherwise the way to go about this wouldn't be to cut the money for F1, but to eliminate the fund altogether, swapping short term needs for long term.

 

“How do we tell a school teacher in Austin who may lose their job, or a government worker who may lose their job, that we don’t have money for them, but we can fund $25 million for racing?”

Haven't these hoople moron's figured out that the track/event/marketing/tourism/construction etc. etc. etc. associated with this effort actually creates jobs?

They should have just gone with Monticello where the track was already there and the area had the intelligence and mentality to actually host a world-class event.

Pathetic

 

Perhaps they realize that its a bad investment pure and simple.

 

How is it a bad investment?? the state hasn't given them any money yet. I'm like 90% sure that monies from the event trust fund can't even be used to financing infrastructure, only for direct costs associated with an even (in this case, the 'bernie fees') it's political. money gets paid back anyways, and you have to apply every year hardly a commitment up front of $250 million on the states part......

 

Investing in a project without a future is not a wise bet. If the local politicians, who always know which way the wind blows, are jumping ship its not good.

 

I would be ok with them simply stating that but don't sugar-coat it with the simpleton crap about putting "not being able to pay the school teachers" to "pay for racing" - it insults the intelligence of anyone that understands an investment if this magnitude will not have a quick ROI. It's not a BBQ restaurant FCS.

If it is a bad investment then just kill it and admit that something like a US F1 race will need to be organized and take place in a proper, world-class city/area like New York, Miami, Chicago etc. or just (more realistic) realize that F1 and the US simply don't make a good match - unfortunate for those of us who live here and are F1 fans but frankly I would rather budget to go see an F1 race in a place with some F1 history and appreciation for the sport as opposed to having to explain to the the NASCAR fans why the cars are turning left and right.

 

There-'s not a political bone in my body......but grandstanding at expense of a poject that HELPS the local business sector is beyond the pale...


The money is actually taxes they 'won't pay" spread across many years......it's not like it's cash in a Zero suitcase or something....

Anything to get your name in the papers it seems.

 

...right, we all know that all NY state politicians would be behind an F1 event at Monticello as Albany (which has much smarter politicians than the rest of the country) has great business acumen and keen sense of finances/ balancing budgets...unlike Texas which has continued to grow and attract business even during the recession.

Also, I understand that the region around Monticello is particularly flattered with an unusually high density of really bright worldly people that regularly host world-class events... ah if Austin were so lucky...just too many rednecks, hippies, and high tech nerds around here for world-class events.. truly a pathetic place!

 

No, this is mearly a symbolic 'protest vote" by a committe, the legislative houses actually allocate the funds, and thankfully Dan Patrick doesn't have much to say about the final outcome of the State Budget.

"Stringing a few 15KV wires" IS all you need to do, on the line side of a substation....

I was thinking of a facility that would distribute 15KV on premise (like the facilities I cited, by name???)

March 11, 2011

Site Utilities Bid Package,
Sanitary Sewer and Domestic Water Only

Does that sound like "all you need" if the power company is handling the electric???

If I remember Tavio's statement the cost is "spilt" on the electrcial service.
I could be wrong I have slept since then.