F1 Race Over, but Debate on Tax Subsidies Continues
The Formula One drivers have come and gone, and the helicopters that ferried well-heeled businessmen to Austin's new race track have fallen silent.
But the debate over providing as much as $250 million in tax subsidies to the race promoters is far from the finish line.
This past weekend's F1 race, the first held in the United States since 2007, drew more than 117,000 fans to the $400 million Circuit of the Americas track. And state officials have projected the event will pump more than $200 million into the Texas economy.
But unlike Rangers Ballpark in Arlington ...
Comments (8)
David Spratt
Bobby Epstein, co-founder of the Circuit of the Americas track, said in an interview a few weeks before the race that the investors would “lose a lot of money” if the state doesn’t come through with the subsidy payments from the Major Events Trust Fund.
Man,,, where can I get in on a deal like this that is guaranteed to lose ' A lot of money?'
If Austin wanted it then they should pay the 25 mil .
Vallejo CA got a windfall of money. They decided to let the citizens vote where to spend it. Guess what,,,, Dog Parks,, playgrounds, bike trails were the top suggestions. Never mind the city filed for bankruptcy and there are more pressing issues ,,, and a dog park is probably the last thing they need to spend money on..
This should end, there are better ways to promote business and eco - development..
Mack Green
Sounds to me like Combs is playing "Bait & Switch" with the State's money and reputation. I could see her reticence to award any upfront money while there was controversy earlier this year whether the track would be built or not. Now that the track has been built it is time to pay the promoters as promised.
Are we to see another egg-on-face example of the State promising something it is not able to produce because politics, egos, and ideologies are at each other's throat? Please people--get your act together, Texas needs to move forward.
Samdavis
The chief investor is well-heeled GOP donor Red McCombs. Why is the state giving him money when they are cutting the education budget? If it's such a good deal it should have been done without public money. When Perry and Abbott and others running this state start their droning about budget cuts, let's not forget this boondoggle.
jpt51
Hogwash Mr. Epstein! Red and Bernie are laughing at Texas taxpayers all the way to the bank. Rick and Susan will no doubt get sone dark money after taxpayers fork over $25 million!
I prefer for my tax dollars go to employing teachers instead of helping the 1%!
Rudy Gonzales
The TEA-Republican powers in Austin are wanting to court and give away money and power to the same elite few Romney alluded to when he said: "I have some great friends who are NASCAR owners." With limited money being given to schools to budget and elite corporations getting tax credits and allowances to build pipelines across the state, one wonders where this money comes from and just who it really benefits? This three-some giving away Texans money to big money operatives stinks to high heaven. Rick Perry, David Dewhurst and Susan Combs live in a cocoon world of privilege while everyday Texans slave and toil to make ends meet. The only ones that will benefit are the top crust of NASCAR and those with money to buy privileged seating and watch the race. I take great issue with providing any kind of subsidies that does not go to raise academic standards or benefit everyday Texans and Texas.
JC DemocratofTejas
Numero Uno--no one asked if Austin wanted F1 crammed down their throats. Combs, et al. suddenly found some money in the treasury, and it was a go. How'd ya lose track of those funds Susan? Ricky didn't find them first??
Numero Dos-Is Texas Enterprise Fund and Emerging Technology Fund rickiperri's way of killing the Rainy Day Fund?
His enterprise investments are on the same level as his bud karlrove.
But yea....the barricades have been removed downtown by this morning. Not sure what they were protecting yesterday, since there was nothing but barricades and police with their flashing lights from their patrol cars blocking traffic. Do I have to pay them overtime pay???!!!
Jim Vance
Here's how Epstein, McCombs, de Joria and any other big investors in the track lose money -- first, it's either a certainty or extremely likely they have acquired (individually or through syndicated partnerships) other land in the vicinity of the track during the very early period of this project and perhaps even before the site location was actually announced to the general public. These land parcels have been "bought low", and over time will be further syndicated or sold at much, much higher values for year-round uses that reflect residential, commercial or automotive-related or other high-tech industrial developments. [There's also a near-certainty that all the well-connected law firms in this part of the state were deeply involved in the business organization of those partnerships and syndication agreements -- especially Pete Winstead's firm, as he was chairman of the Texas Turnpike Authority Board during the critical period when SH 130 was planned and received Federal EIS approval, and was later quoted in several Austin newspapers that his firm expected the highway's construction to have a strong positive effect on the firm's real estate business.]
Until that nearby development actually occurs and the COTA investors can actually realize some of the enhanced value on their other holdings, the potential gain on those properties remains "not real" money. However, the taxable value imposed by the various counties will certainly have increased -- probably just as fast and as high as the county tax assessors can manage -- and so will the owners' holding costs. It is against those interim holding costs that the $25 million/year would defray most or all of, along with the opportunity cost of the original investment (either from personal capital or loans) made by them. Without the State's METF subsidy, they've got to cover all of those costs directly and so put up "real" money to satisfy the obligations.
Christine Lund
Why shouldn't the area that profits from this business pay them some money? I don't watch that sport and I don't work in that area. Why pay such a money maker to make money?