US GP in Austin Discussion and Speculation...

joker57676 · Jun 7, 2011

http://formula-one.speedtv.com/article/f1-us-gp-could-push-for-later-2012-date-official

Possibly seeking later date on F1 calendar.

Mark

Schatten · Jun 7, 2011

joker57676 said: ↑

http://formula-one.speedtv.com/article/f1-us-gp-could-push-for-later-2012-date-official

Possibly seeking later date on F1 calendar.

Mark
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Ha!

But the local American Statesman newspaper has pointed out that in 2009, for example, the temperature in Austin on 17 June was a sweltering 100 degrees.
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In the car, it said 105 yesterday! We haven't even touched July or August.

texasmr2 · Jun 7, 2011

Austin is not be the only track to reach 100+ and F1 drivers are supposed to be the elite of the elite right?

Schatten · Jun 7, 2011

True, but the fans don't want to be out there! I certainly don't. It isn't that lovely dry heat that people in New Mexico and Arizona talk about. It isn't Houston either, but close.

texasmr2 · Jun 7, 2011

Schatten said: ↑

True, but the fans don't want to be out there! I certainly don't. It isn't that lovely dry heat that people in New Mexico and Arizona talk about. It isn't Houston either, but close.
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Well you cannot speak for all the fan's can you? I hear ya and if I work security I'll have a 'vest' on and if not I'll be in daisy duke's but I will still be there. Hey after the race we could take the bus back into town and hunt down one of those killer taco truck's, cool??

Schatten · Jun 7, 2011

In the news today...

http://www.bizjournals.com/austin/news/2011/06/07/formula-one-austin-group-asks-city.html?ed=2011-06-07&s=article_du&ana=e_du_pub

Formula One Austin asks city to set aside $4M a year in tax revenue
Austin Business Journal - by Vicky Garza, Ashley Furness, Staff Writer, Web Editor

Date: Tuesday, June 7, 2011, 10:05am CDT

A committee formed by Formula One Austin organizers has asked the city to participate in a new trust that could require contributing $4 million annually in tax revenue.

The group, called Circuit Events Local Organizing Committee, was discussed along with the proposed deal during a meeting with city officials on Tuesday. Presenters said the annual $4 million contribution would be paid through projected increases in sales, hotel occupancy and other taxes directly attributable to the race over a 10-year period. Also, the organizing committee would front the first $4 million this year.

Officials said if the tax increase exceeds $4 million, city officials would decide whether to add that to the trust, or keep it in general revenue coffers.

The nonprofit committee of Austin-area business leaders would act as an intermediary between the city and the state comptrollers for a new "Texas Major Events Trust Fund." The events trust was created through legislation passed in 1999. The law was revised 10 years later to add Formula One as a possible beneficiary.

Officials emphasized several times that the agreement would not cost the city anything because the $4 million would be paid through newly-generated taxes that wouldn't exist without the Formula One race. Council members asked if the contract could specifically state that the city would not be liable if the tax increases did not reach the $4 million threshold.

The city dollars are required to guarantee the $25 million annual state incentive proposed last May. The group would use the combined $29 million annual trust to pay the Federation Internationale de l'Automobile to host the race; and for economic impact studies, performance bonds and other operating expenses.

The organizing committee has already commissioned an economic development study to provide updated facts and figures to the comptroller, which is expected to be completed this week. An economic impact study is required before a municipality can access trust fund money.

Austin City Council will vote on the agreement June 23. The city would also be guaranteed a spot on the organizing committee board, which currently includes:

*

Sam Bryant, President, Bryant Wealth Investment Group LLC
*

Ann Smalling, President, HM International LLC
*

Stephanie Richmond, Owner, Richmond International Connections
*

Ford Smith, President and Owner, Texas Enterprises Inc.
*

Wayne Hollingsworth, Attorney, Armbrust and Brown, PLLC
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Simon^2 · Jun 7, 2011

joker57676 said: ↑

http://formula-one.speedtv.com/article/f1-us-gp-could-push-for-later-2012-date-official

Possibly seeking later date on F1 calendar.

Mark
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Doesn't need to be later... Would be cooler in March or April as well!

iamthesimpleone · Jun 7, 2011

Schatten said: ↑

Ben, that link doesn't work. Gotta be logged in...?!
This is looking from turn 1.
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City of Austin tries to prevent direct links to files on its site. Guess the cache file got deleted. Uploaded it to my site:

http://www.benisthecoolestguyintheworld.com/filesnstuff/5992506072011060718771.pdf

Schatten said: ↑

Ha!

In the car, it said 105 yesterday! We haven't even touched July or August.
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What happened to it not breaking 100 before july

iamthesimpleone · Jun 7, 2011

http://www.statesman.com/blogs/content/shared-gen/blogs/austin/racing/entries/2011/06/07/the_city_of_austins_official.html

Organizers of a proposed Formula One race in Austin have officially asked the Austin City Council to sign on to the event, a legal step necessary for race organizers to become eligible for a multimillion-dollar state economic incentive program.

The City Council is scheduled to be briefed Tuesday on a proposal to become the local sponsoring entity of the race.

International F1 officials announced Friday that the inaugural Austin race is scheduled for June 17, 2012.

Gaining the city's approval would make United States Grand Prix, the Austin-based organization formed by race promoter Tavo Hellmund, eligible to collect $25 million a year for 10 years from the state's Major Events Trust Fund. The money would be used to pay the sanctioning fee to the international F1 organization.

According to state laws, the fund is to be backed by taxes generated by the event itself and not cost taxpayers anything. Additional sales, alcohol, lodging and car rental tax revenues attributable to the event are deposited into an account at the comptroller's office. The host city can then tap the account to cover expenses tied to the event, such as security. The process would repeat in future years, assuming the F1 organizers reapplied.

Typically, the local sponsoring entity would deposit its share of the extra anticipated tax revenue in this case, an estimated $4 million into a state account before the event. But Richard Suttle Jr., an attorney for race organizers, said his clients are prepared to cover the first-year portion of the trust fund.

"The city will not be asked to front that amount," he said. "We're paying it on the front end. It's essentially a rolling loan."

It's still unclear whether the city would get away with paying no money for the event. Since the local organizing committee would come up with the initial $4 million, for example, it would probably be the entity to be reimbursed from the trust fund. That means that if the city paid, say, $50,000 for security for the event, it might have to cover that cost for the first year.

Austin officials say such details are still being negotiated. They also stress that the city would be unlikely to incur large costs for hosting the event because the race will be held outside city limits, in eastern Travis County.

Suttle noted that the local organizing committee could raise the $4 million through surcharges, such as a fee on tickets.

The state comptroller's preliminary economic impact study estimates that the Formula One race will generate nearly $300 million a year for the Texas economy.

In a recent opinion piece in the American-Statesman, economist Angelos Angelou said his calculation of the track's impact is well over $500 million .

The economic impact figures are the subject of much debate, and some say the city needs to carefully vet the numbers before agreeing to sign on as the local sponsoring entity.

"The city needs to know these numbers are based on something they're comfortable with," said Dan Houston, a partner at Civic Economics, an economic development consulting firm. "They're being asked to come on board on the basis of numbers that are highly suspicious at best."

Mayor Lee Leffingwell said he expects to see a proposal that ensures the city will be "cash positive" from the event and that won't put Austin at risk to make up any shortfall "in the unlikely event" that F1 does not generate enough tax revenue to meet the city's $4 million requirement.

City Council Member Sheryl Cole said the city will do its due diligence. "We have to make sure that this offer pencils out for the city," Cole said.

Cole said the event is expected to generate approximately $6 million in city sales tax revenue, so minus the $4 million, the city would get "$2 million off the bat" in extra sales taxes annually, as well as substantial additional hotel tax revenues.

Cole also said she will "urge annexation with all deliberate speed" of the 1,100-acre F1 site and related development it is expected to spur, to increase the city's property tax base.

The racetrack venue is expected to draw 400,000 people annually to a series of events, said Bobby Epstein, whose Prophet Capital Management is an investor in the $400 million venture.

Assuming that attendees spend "well over" $1,000 each during their stay likely considerably more over multiple nights "it's easy to get to that $500 million number" or $5 billion over the next 10 to 15 years, Epstein said.

Given that impact, he said the city's participation is "a pretty great investment."

"This isn't money spent by Texans on Texans; this is money flowing into our state and into our city" from out-of-town visitors.

Epstein added: "Just as it is with the Olympics, the World Cup and similar global events, the guy that runs the stadium can't possibly sell enough tickets to pay the fee that it takes to win the event rights. Therefore, in order to make the event viable, some amount of economic assistance is required. The community that realizes the economic benefit of hosting such an event could realistically be expected to be a partner."

Several council members said they will wait to be briefed before commenting.

"I do think there's been a lot of misunderstanding about the Major Events Trust Fund, and I'm looking forward to hearing more about it at the work session," Council Member Chris Riley said.
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Axecent · Jun 8, 2011

From COTA's facebook page, two separate postings as follows:

This is call to all local F1 fans! We need to flood the City Council chambers at 10:00am Thursday (tomorrow) showing our support for the COTA project. I will make time to be there, who is with me?

Fellow Friends of Formula 1. I encourage all of you, no matter where you live to send an email to the Austin City Council proclaiming your support for Austin to Host the Formula 1 Grand Prix.

I found this info listing e-mails using google:

http://www.ci.austin.tx.us/council/contacts.htm

iamthesimpleone · Jun 8, 2011

You going?

madmaxatl · Jun 8, 2011

Has anyone thought about a plant for the other side? If they open it up for public comment having someone there dressed and acting like a crazy person against the F1 track could be hilarious and help the pro F1 side look far more professional and reasonable. I doubt it matters though, with all the political pressure no one's going to vote against it.

Simon^2 · Jun 8, 2011

madmaxatl said: ↑

No one's going to vote against it.
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Really?

iamthesimpleone · Jun 8, 2011

madmaxatl said: ↑

Has anyone thought about a plant for the other side? If they open it up for public comment having someone there dressed and acting like a crazy person against the F1 track could be hilarious and help the pro F1 side look far more professional and reasonable. I doubt it matters though, with all the political pressure no one's going to vote against it.
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I don't think you'd need a plant to do that; one or two will probably show up on their own accord. For a few months there was a guy that dressed up in a pig suit, and held out a sign that said 'all lawyer's are pigs'....

Simon^2 said:

Really?
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Yes it will pass. At least the endorsing municipality part will. Whether or not they set up a special tax thing to have the public pay the $4MM part, or if Tavo & Co. are going to have to pay the $4MM for the local portion, like they'd already offered is debatable.

Simon^2 · Jun 8, 2011

iamthesimpleone said: ↑

I don't think you'd need a plant to do that; one or two will probably show up on their own accord. For a few months there was a guy that dressed up in a pig suit, and held out a sign that said 'all lawyer's are pigs'....

Yes it will pass. At least the endorsing municipality part will. Whether or not they set up a special tax thing to have the public pay the $4MM part, or if Tavo & Co. are going to have to pay the $4MM for the local portion, like they'd already offered is debatable.
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where did I say it wouldn't pass?

I questioned that "no one would vote against it"

IMHO multiple reasons someone may vote against it... not the least of which may be show me this is a viable project... in 13 months you have plowed some land... you have 9 months left! "have you ever built anything????"

Plenty of greenie's against motor racing regardless...

I'd be surprised if it didn't pass. I'd also be surprised if it was unanimous...

iamthesimpleone · Jun 8, 2011

Simon^2 said: ↑

where did I say it wouldn't pass?

I questioned that "no one would vote against it"

IMHO multiple reasons someone may vote against it... not the least of which may be show me this is a viable project... in 13 months you have plowed some land... you have 9 months left! "have you ever built anything????"

Plenty of greenie's against motor racing regardless...

I'd be surprised if it didn't pass. I'd also be surprised if it was unanimous...
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My bad; i mis-took your post.

Rick Perry (governor) and Susan Combs (comptroller) apparently first got in contact with Bernie back in 2008. I don't think they're going to get involved with this if they aren't convinced of the project getting completed.

Schatten · Jun 8, 2011

iamthesimpleone said: ↑

My bad; i mis-took your post.

Rick Perry (governor) and Susan Combs (comptroller) apparently first got in contact with Bernie back in 2008. I don't think they're going to get involved with this if they aren't convinced of the project getting completed.
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Susan is in a bit of trouble after the latest security breach a few months ago. Not sure how long she will last or buy her way out of that issue.

The site is currently moving 300 truckloads a day from a local quarry. 1/3 way completed before sinking stabilizers into the ground for stabilizing structures.

iamthesimpleone · Jun 8, 2011

Schatten said: ↑

Susan is in a bit of trouble after the latest security breach a few months ago. Not sure how long she will last or buy her way out of that issue.

The site is currently moving 300 truckloads a day from a local quarry. 1/3 way completed before sinking stabilizers into the ground for stabilizing structures.
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I'm surprised her and Rick can agree on anything after Amazon sales tax issue.

So there's not enough rock in the soil out there......should have built it in West Austin

That sounds like a lot of material to be moving

Axecent · Jun 9, 2011

iamthesimpleone said: ↑

You going?
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No, but I sent e-mails, FWIW. I have a huge project going on and can't break away.

Simon^2 · Jun 9, 2011

Don't believe this has been posted...

Dated 3/7/2011... but describes SEC filing... Didn't Tavo claim he was fully funded?

http://www.statesman.com/blogs/content/shared-gen/blogs/austin/racing/entries/2011/03/07/f1related_group_raises_125_mil.html

Austin Statesman.com said:

F1-related group raises $12.5 million from investors
By American-Statesman Staff | Monday, March 7, 2011, 02:44 PM

An entity connected to the proposed Formula One race in Austin has raised $12.5 million toward the planned $250 million project, according to documents filed today with the federal Securities and Exchange Commission.
The $12.5 million comes from 10 investors and is part of a $20 million funding push by Austin Formula 1 Racing and Entertainment LLC, documents show.
The groups SEC filing did not give specifics about how the money would be used and gave no information about the investors.
Officials last May announced plans for the race in Austin, to be known as the United States Grand Prix, and plans for its venue, which is scheduled to open for an inaugural race in 2012. Work began in December on the site, a 970-acre tract southeast of Austin near the town of Elroy.
The project will include a 3.4-mile track, facilities for race teams, grandstands for 120,000 fans, and other hospitality and entertainment components.
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BigTex · Jun 9, 2011

iamthesimpleone said: ↑

I'm surprised her and Rick can agree on anything after Amazon sales tax issue.

So there's not enough rock in the soil out there......should have built it in West Austin

That sounds like a lot of material to be moving
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They could have left RR2222 pretty much as is, and circled back on 620.
Would have rivaled Nurburgring.....

tifosi12 · Jun 9, 2011

Simon^2 said: ↑

Don't believe this has been posted...

Dated 3/7/2011... but describes SEC filing... Didn't Tavo claim he was fully funded?

http://www.statesman.com/blogs/content/shared-gen/blogs/austin/racing/entries/2011/03/07/f1related_group_raises_125_mil.html
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12 million?

Ouch.

When will that be spent? By the end of June or July?

Simon^2 · Jun 9, 2011

tifosi12 said: ↑

12 million?

Ouch.

When will that be spent? By the end of June or July?
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Explains a lot doesn't it.

tifosi12 · Jun 9, 2011

Simon^2 said: ↑

Explains a lot doesn't it.
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It does. Except for the overly optimistic count of believers' votes on the poll...

Simon^2 · Jun 9, 2011

tifosi12 said: ↑

It does. Except for the overly optimistic count of believers' votes on the poll...
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Amazing isn't it... no different than elections if you think about it.

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US GP in Austin Discussion and Speculation...

Now that Austin is on the official FIA calendar, will the race really happen?

Yes, it will happen.

No, no way for construction to finish.

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US GP in Austin Discussion and Speculation...

Now that Austin is on the official FIA calendar, will the race really happen?

Yes, it will happen.

No, no way for construction to finish.

joker57676 Two Time F1 World Champ

Schatten F1 World Champ Owner

texasmr2 Two Time F1 World Champ BANNED

Schatten F1 World Champ Owner

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Schatten F1 World Champ Owner

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