Circuit of the Americas Formula 1 Race Track

[hookem]

Originally Posted by Hill Country

We're missing some important information. The hardest part of this project should have been securing $300 million to build the track during during a recession. That seems to have been accomplished relatively easilly, so stopping this during construction makes no sense. Unless Bernie and his lapdog Tavo are content to just have the New York area race as the only American race.

This article has perhaps the most specific info:
http://www.dailymail.co.uk/sport/for...=feeds-newsxml

There were two hurdles -- the money to build the track was just one. But that's not terribly hard to grasp for investors -- you spend the money, you build a track, then you own that asset.

The real difficulty is the F1 sanctioning fee, a $25-$35 million payout in advance for an event. After the event, you don't have a building or anything, it's just gone. You have to be able to make your money through that one event, and a profit, and that's practically impossible. That's why pretty much all sanctioning fees for F1 are paid by governments. No private investor would put down that kind of money in advance for just an event, one that they wouldn't even really "own".

With the Texas Comptroller now denying the advance of public $$$, I just don't see how F1 can happen. Contract or not. But I hope they can finish the track and get the other series or NASCAR to come. I'd hate for it to be another Intel shell. I mean, it's a Herman Tilke designed track that has some awesome features. Finish it and let the races work themselves out over time.

[Mikey711MN]

Originally Posted by hookem

This article has perhaps the most specific info:
http://www.dailymail.co.uk/sport/for...=feeds-newsxml

There were two hurdles -- the money to build the track was just one. But that's not terribly hard to grasp for investors -- you spend the money, you build a track, then you own that asset.

The real difficulty is the F1 sanctioning fee, a $25-$35 million payout in advance for an event. After the event, you don't have a building or anything, it's just gone. You have to be able to make your money through that one event, and a profit, and that's practically impossible. That's why pretty much all sanctioning fees for F1 are paid by governments. No private investor would put down that kind of money in advance for just an event, one that they wouldn't even really "own".

With the Texas Comptroller now denying the advance of public $$$, I just don't see how F1 can happen. Contract or not. But I hope they can finish the track and get the other series or NASCAR to come. I'd hate for it to be another Intel shell. I mean, it's a Herman Tilke designed track that has some awesome features. Finish it and let the races work themselves out over time.

Good summary, and definitely along the lines of how I think this is playing out.

That all said, the investors have spent millions in the construction in the ground already, and at least a partial assurance of a scheduled event - the status of the other contracts notwithstanding - came directly from Combs on State letterhead certifying that advance payment would be made. (Source)

To that end, I can't help but think that a lawsuit against the State is soon forthcoming. That is, if business decisions (read: investments in construction) were made based in part on a certification of a payment that wasn't received, there appears to be some culpability there.

I'm no lawyer, but Combs' letter - as reported - seems to be pretty clear. It'd be one thing if she gave some sort of speech, i.e. not a legally binding commitment and rather a "flip-flop" in the presence of political resistance, but this is a certified statement by the State Comptroller!

There's a lot of blame to pass around on this thing, but investors don't like to get hosed out of millions of dollars any more than the locals want another "Intel shell" (nice!) out on the east side of town.

[wwmiv]

Originally Posted by Mikey711MN

Good summary, and definitely along the lines of how I think this is playing out.

That all said, the investors have spent millions in the construction in the ground already, and at least a partial assurance of a scheduled event - the status of the other contracts notwithstanding - came directly from Combs on State letterhead certifying that advance payment would be made. (Source)

To that end, I can't help but think that a lawsuit against the State is soon forthcoming. That is, if business decisions (read: investments in construction) were made based in part on a certification of a payment that wasn't received, there appears to be some culpability there.

I'm no lawyer, but Combs' letter - as reported - seems to be pretty clear. It'd be one thing if she gave some sort of speech, i.e. not a legally binding commitment and rather a "flip-flop" in the presence of political resistance, but this is a certified statement by the State Comptroller!

There's a lot of blame to pass around on this thing, but investors don't like to get hosed out of millions of dollars any more than the locals want another "Intel shell" (nice!) out on the east side of town.

Unless there was also a contract to the same effect, it (the letter) isn't legally binding.

[ATXboom]

The timing of this with the announcement of the NY race is the heart of the matter. THE ONLY thing that could possibly make sense is Bernie is happy with just 1 US race and wanted it in NY all along... just used Austin as a pressure point to make it happen.

If I'm an investor, the track is mostly done AND it's a course designed by a world famouse architect!! It's an investment asset. Finish the build out and get every other major race event here... F_ck F1 and those psycho, game playing punks. When they want back in tell them to hit the road.

[JoninATX]

Circuit of the Americas developers say a cheque is ready to secure the Formula One Grand Prix

Circuit of the Americas spokesman Jeff Hahn said on Thursday a cheque for the sanctioning fee was ready but wouldn't be sent until organisers receive a signed contract from F1.

http://www.foxsports.com.au/motor-sp...-1226205749468

[Jdawgboy]

This is going to be the big stick in the mud if you will. COTA can't just write up a contract and expect Bernie to sign it. Its Bernie's call and his contracts and unless the organizers at COTA get that through their skulls, this race is not going to happen. Im not a fan of Bernie at all and Im not taking his side in the matter but fact is he makes the contracts not the other way around.

[JoninATX]

F1 Austin is in such a mess I don't know what to think. On there facebook Tavo & Bernie said they never had the money? and by looking at recent pictures it looks like trucks are moving on the site?

http://www.facebook.com/pages/Friend...=wall&filter=1

[The ATX]

KXAN reported that F1 (Bernie) allegedly wants $300 million up front for a 10 year contract instead of waiting for the $25 million per year as races are held. This will kill the project. Bernie has always wanted a New York race and with F1 never doing well in the States I think he's happy with just his new York race. Unless of course he can make a $300 million pay day.

KXAN also reported that local business owners that were dependind on the race happening are going forward with a class action lawsuit against F1. That's a fail.

[The ATX]

The new deadline is tomorrow, and there is absolutely no news about the project. I guess everyone has already written it off.

[hookem]

Originally Posted by Hill Country

The new deadline is tomorrow, and there is absolutely no news about the project. I guess everyone has already written it off.

Well, there are 2 likely outcomes IMO:

1) They drop Austin from the 2012 calendar, but say it's been moved back to 2013 per the new contract/COTA request. No hurry to start construction back up because of the delay. Project likely fizzles away into the sunset while still looking for financing.

2) They drop Austin from the 2012 calendar, say no contract/money has happened so it's over for F1 in Austin. Project is dead. Lawyers get very busy.

And there is one unlikely outcome:

3) The contract is signed, money is there and 2012 remains on the calendar. In which case, they better start bringing back that construction equipment quick!

With the time difference, we'll know for sure by the time we get up tomorrow morning. Maybe even tonight.

[Austinite101]

Exclusive: Austin back on for 2012?

12/7/11

Pitpass understands that the United States Grand Prix, scheduled to be held at the Circuit of the Americas, could be back on the 2012 calendar.

Highly reliable sources inform Pitpass that ahead of the new deadline granted by Bernie Ecclestone last week, and which runs out on Today (Wednesday), the relevant funding has been transferred to the Formula One World Championship Company.

Although nothing has been confirmed, Pitpass understands that an announcement will be made on Wednesday.

Late last month, Bobby Epstein, founding partner of Circuit of The Americas, said that despite the ongoing problems he and his partners were willing to pay the sanctioning fee for the 2012 event with immediate effect, despite the fact that he regarded the new contract offered by Ecclestone as containing "unrealistic and unfeasible demands".

http://www.pitpass.com/45393-Exclusi...ck-on-for-2012

[JoninATX]

F1: Austin Keeps Place On 2012 F1 Calendar

Adam Cooper | http://www.speedtv.com | Posted December 07, 2011

Following its meeting in Delhi on Wednesday, the FIA World Motor Sport Council has confirmed that the 2012 F1 calendar is unchanged.

That in effect must mean that Circuit of the Americas has signed a deal with Bernie Ecclestone for the race to happen, given that Ecclestone said that the meeting was the deadline.

However, it remains to be seen whether the track can be built in time, given the recent stoppage at the venue, with little in the way of activity seen for several weeks.

Bahrain also appears on the calendar despite obvious doubts about the wisdom of F1 going there.

Bahrain’s Sheikh Abdulla Bin Isa Khalifa is a WMSC member after Jean Todt gave him the presidency of the CIK, the karting commission.

http://formula-one.speedtv.com/artic...12-f1-calendar

[Mikey711MN]

I really thought that the race would still be on, but that it would be delayed until 2013.

That said, they're going to need to absolutely fly back to the construction site and pour money into the track to get it done by next year. In a lot of ways, a 2013 start would have been logistically better.

[Jdawgboy]

This is great news considering the very bumpy two months of bad publicity articles and negative outlooks. I was not surprised however that there was no news out until hours before the official word came out. You don't want to have anything leaked too soon so I was not worried about that. The fact that we had one more week added for the deadline gave me hope that there was something going on behind the scenes to make this happen.

[Jdawgboy]

Originally Posted by Mikey711MN

I really thought that the race would still be on, but that it would be delayed until 2013.

That said, they're going to need to absolutely fly back to the construction site and pour money into the track to get it done by next year. In a lot of ways, a 2013 start would have been logistically better.

Construction will resume right away and by the end of the week should have construction at full speed with between 300 to 400 workers on site.

[hookem]

Wow, that's about the best news possible. I really can't believe they actually sent the money and are going forward, especially with no state money upfront. Some deep pockets are taking a huge risk, but in some ways that makes me even more confident it will happen. Now someone has a lot more skin in the game.

I kind of think 2012 was pretty important, and that waiting til 2013 would have been less desirable. The Austin track needs that 2012 debut without New Jersey to attract a huge crowd. Then hopefully they come back for 2013 and beyond because the purpose-built track is so much cooler than a street race.

[MightyYoda]

Originally Posted by hookem

Wow, that's about the best news possible. I really can't believe they actually sent the money and are going forward, especially with no state money upfront. Some deep pockets are taking a huge risk, but in some ways that makes me even more confident it will happen. Now someone has a lot more skin in the game.

I kind of think 2012 was pretty important, and that waiting til 2013 would have been less desirable. The Austin track needs that 2012 debut without New Jersey to attract a huge crowd. Then hopefully they come back for 2013 and beyond because the purpose-built track is so much cooler than a street race.

Agree with this. Also as said previously, a 2013 outcome would most likely mean a slow death as there would be pause in construction, etc... I am not worried about it finishing on time since the original time table was June and that was on-schedule before pushing back on the calender due to heat. They have built other tracks in less time than they need to build this one.

[The ATX]

It looks like the drought will continue into 2012, so that will help with the constructions schedule. The only sustained (three days) rainy period we have had in a long time was during the construction stoppage.

[Jdawgboy]

Originally Posted by Hill Country

It looks like the drought will continue into 2012, so that will help with the constructions schedule. The only sustained (three days) rainy period we have had in a long time was during the construction stoppage.

We are in a La Nina pattern but this La Nina is quite different from last years. While La Nina's on average bring drier and warmer weather that is not always the case.
The fact that we have seen rain events at all when this time last year there were none shows the difference. Our Temps are also holding below normal for this time of year so that is another difference. For the past month we have seen rain events that have given at least half and inch or more. In fact here at my house since the first big rain event we have stacked up 5.14 inches of rain. We are likely not going to see a repeat of last years La Nina and forcasters are begining to moderate our winter outlook to bring in more rainfall, that being said, we will still be behind by many inches and it will take weeks of rain like we recently got or a major flood event to break the drought.

[BevoLJ]

Rates for many hotels skyrocket on F1 weekend
By Gary Dinges
AMERICAN-STATESMAN STAFF

The downtown-area Super 8 still has rooms available for Austin's Formula One race weekend in November - if you're willing to shell out more than $500 a night.

The budget hotel at 1201 N. Interstate 35 is just one of many motels regionwide that have dramatically hiked prices on race day, Nov. 18.

Other examples: A Best Western in Lockhart would run you at least $450 a night. And the Hampton Inn in Buda has rooms available - starting at $407.

Rates are, for the most part, higher just before and after the event, as well.

Hotel operators' decision to dramatically increase room rates during the F1 race is not a violation of the state's price-gouging laws. Those laws go into effect only when a state of emergency or disaster is declared by the governor, according to the Texas attorney general's office.

The eye-popping prices don't surprise consumer advocate Chris Elliott, author of "Scammed," a book focusing on ways to save money and get better service.

"Hotels know it's a sellers' market for their rooms," Elliott said. "They know people are willing to pay more."

Many hotels are already booked solid for the race weekend. A search of Travelocity.com shows rooms are unavailable on Nov. 18 at 180 inns in Austin and across the region.

Figures from Smith Travel Research show Central Texas has about 30,000 hotel rooms - not nearly enough for the 120,000 attendees expected at the still-under-construction track.

F1 organizers have said as many as 4,500 of those rooms will be needed for people directly affiliated with the race, including drivers, sponsors and reporters from around the globe who will be covering the event.

Smith Travel reports that November occupancy in the Austin market is, on average, 63.4 percent.

...

http://www.statesman.com/business/ra...e=rss_business