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Home / Washington Business - July/August 2006 / Policy: Is NASCAR coming to Washington? |
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Policy: Is NASCAR coming to Washington? |
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Written On: July/August 2006 |
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Written By: by Daniel Brunell |
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Could NASCAR come to Washington? Maybe. For years there has been discussion about bringing the nation’s second-most-popular sport to the Pacific Northwest. Proposals came and went with varying amounts of interest. The current discussion may be much more serious.
As much as some in Seattle and Portland like to disparage NASCAR, the sport does have a strong local following. Venues like Evergreen Speedway in Monroe had NASCAR truck-series events and Portland International Speedway in Oregon had major open-wheel (Indy car) events as recently as 10 years ago. In addition, some of NASCAR’s top talent—including drivers Kasey Khane and Chad Little—are from Washington. However, there has not been a central super-speedway in the area that could accommodate the 80,000-plus spectators who attend these events.
The Northwest represents the single largest market in the nation without a NASCAR track. "Geographically, it’s the only section of the country that doesn’t have a major NASCAR event and the track that can support one," said Grant Lynch, vice president of International Speedway Corp. "The closest track that holds NASCAR events is Infineon Raceway in Sonoma, Calif., more than 600 miles from the Seattle-Portland metropolitan area."
ISC and its subsidiary, Great Western Sports, have been aggressively trying to build a racetrack in the Pacific Northwest. ISC owns and/or operates 11 of the top motor sports facilities in the nation, including such hallowed names as Talladega, Martinsville, Darlington and Watkins Glen. They first looked at a site near Marysville, but after some of the land deals fell through they decided to pull out and search for a new location. They believe they have found one near the Bremerton airport. Now comes the hard part—paying for it.
During the 2005 and 2006 legislative sessions, ISC proposed a public-private funding partnership to build the track. Leery about the scheme, Washington’s Legislature was not in the mood to deal with it this time around. It is expected to come up again in 2007.
The total cost of building the track is $345 million. ISC has promised to pay $166 million of the costs, plus any cost overruns, ongoing operating costs and capital improvements. The 48 percent promised by International Speedway is a far greater proportion of private investment then what it took to built Safeco Field (24 percent) and Qwest Field (30 percent).
But here’s the rub. ISC has asked the state for $166 million in sales tax credit. Kitsap, Mason and Pierce counties would form a public stadium authority which would own the track with ISC as long-term lease tenants and chief operators of the track. The PSA would use a portion of the state’s sales and use tax collections to support its construction. There would be no new taxes or increase of any current taxes. Instead, the PSA would issue a rebate of the overall sales taxes generated by race-related spending in the state. In this way, the revenue generated from increased tourism helps pay for the track. On top of this, the PSA would charge an admission tax to events that would raise the final $13 million needed for construction.
Since the end of legislative session, ISC has been busy building momentum for this plan. They have talked to community leaders, public officials and concerned citizens about the proposal. The real breakthrough for ISC was on May 31 when Lt. Gov. Brad Owens held a public meeting in Seattle concerning the proposed speedway. At this meeting, ISC gained a lot of support, including Congressmen Norm Dicks, D-Bremerton, and Adam Smith, D-Tacoma. In a written statement, Dicks stated, " ... the Kitsap Speedway project is a bold endeavor that will prove to be both a sound investment and a wonderful new attraction for people here in our state and for visitors who will come to support the events and patronize local businesses."
The big question is, will it work? Based on NASCAR’s and ISC’s track record, it will. A recent example is ISC’s newest track in Kansas City, Kansas. "The track rejuvenated an economically depressed area," said Lewis Ebert, president of the Kansas Chamber of Commerce. "The partnership between the Kansas Speedway and the state has been a good and profitable one."
Will Washington see NASCAR any time soon? ISC has promised to work on a package for next year. If it succeeds, we might see a race as soon as 2010.
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