United States Grand Prix - Formula One (F1) - Austin

[aggie97]

From that last link....


She's asking the impossible. Where would she get these numbers? Indianapolis?!?! Good luck with that, the numbers won't be comparative. Speedway's infrastructure is probably one of the best at getting people in and out of the track and it still takes 4 hours to do both. (Unless you're a local.) Also, as far as economic impact... Again, where will these numbers come from? Indy, again? That MIGHT work but still are just estimates and that was a MUCH bigger and better place with tons of history and a HUGE local fan base. The only other place she could look is MAYBE Korea. Good luck there! What about Bah Rhain... Yeah, those numbers are valid. She's sand bagg'n at best and knows she asking for the impossible.
Just my 2¢

Apparently, as expected, there is a HUGE push back from the community in Austin.

Also, it sounds like they are doing a cost plus style contract so get ready for delayed finish dates due to running out of money.

I do hope they pull it off and our new driving school can get a rental day there in 2012....but they have some SERIOUS hurdles to overcome before then.

[garycrist]

We hope to go! I used to go to the Long Beach GP every year.

[Sgt Beavis]

IMO, they picked the wrong city to do this in. Austin will always put up road blocks to this kind of thing. Move to San Antonio or DFW and it will get done. Especially since Laura Miller is no longer the mayor of Dallas.

[David]

So why don't they go to Indy anymore?

[Strychnine]

So why don't they go to Indy anymore?

The big issue was the tire controversy in '05 when they ran the parade lap then all 14 cars running Michelin tires withdrew from the race. Only 6 cars (Bridgestones) continued.

There's one high speed turn at Indy (when run as an F1 road course) that is especially hard on the tires due to the way they are loaded and there were a bunch of tire failures in practices before that race.

Michelin came out and said that their tires were unsafe for this track and requested that a chicane be added (to limit speeds) or that they be allowed to fly in a new compound tire the night before to help w/ the problem but FIA said that this wouldn't be fair to the Bridgestone teams so no chicane was added and the Michelin teams could not use a different compound tire than used in qualifying unless they wanted to be subject to penalties.

Lots of controversy, teams banding together to make a point, fans extremely pissed off, F1 officials calling the future of F1 in the US "not good"... it was a mess.



They'll also cite lacking attendance, the city not doing enough to advertise and promote in the years after, blah blah blah.

[GSXRK5]

It will be awesome when MotoGP makes its way to Texas. Man that would be perfect. I can dream can't i?

[Slowhand]

IMO, they picked the wrong city to do this in. Austin will always put up road blocks to this kind of thing. Move to San Antonio or DFW and it will get done. Especially since Laura Miller is no longer the mayor of Dallas.

Why? San Antonio and Dallas are miserably boring and not entertaining whatsoever; certainly neither fits the bill for a city to host a Formula 1 race. Austin is absolutely the right place to have this, even if there are some hurdles to overcome.

[momo]

Austin is absolutely the right place to have this, even if there are some hurdles to overcome.

i'm fine with austin having it and im just glad it's in texas but i think event would make more sense in las vegas.

[Slowhand]

i'm fine with austin having it and im just glad it's in texas but i think event would make more sense in las vegas.

I bet Las Vegas would already have the track halfway built at this point, lol.

[John -- '02 HAWK]

From that last link....


She's asking the impossible. Where would she get these numbers? Indianapolis?!?! Good luck with that, the numbers won't be comparative. Speedway's infrastructure is probably one of the best at getting people in and out of the track and it still takes 4 hours to do both. (Unless you're a local.) Also, as far as economic impact... Again, where will these numbers come from? Indy, again? That MIGHT work but still are just estimates and that was a MUCH bigger and better place with tons of history and a HUGE local fan base. The only other place she could look is MAYBE Korea. Good luck there! What about Bah Rhain... Yeah, those numbers are valid. She's sand bagg'n at best and knows she asking for the impossible.
Just my 2¢

This is absolutely doable. This type of cost analysis is typically done on everything. All they have to is find other sporting venues and events that will hold the same approximate amount of people and look at the revenue earned by the venue, and the economic impact of the surrounding area. Plus there is a lot information that is readily available because its used for advertisement solicitations by the event/venue. From there they can do speculative statistical modeling based on normal traffic, and the influx. From that you can overlay of how much money is spent by the event goers to show where and how much money is distributed into local the economy.

Since they dont already have such an analysis it shows how ill conceived as a buisness this project is.

[John -- '02 HAWK]

IMO, they picked the wrong city to do this in. Austin will always put up road blocks to this kind of thing. Move to San Antonio or DFW and it will get done. Especially since Laura Miller is no longer the mayor of Dallas.

Its in Austin because thats where the crooked politicians are that gave them the financing.

[Darren M]

Since they dont already have such an analysis it shows how ill conceived as a buisness this project is.

Sadly, I have to agree to this point.

[Darren M]

More info from the track.
Original web post

Press Releases


February 1, 2011 Formula 1 Facility Construction to Have
Substantial Economic Impact on the Region

Study Releases Benefits of World-Class Venue on Local and State-Wide Economy
Austin, TX – A recent study conducted by Dr. Don Hoyte, principal of TexasEconomicImpact.com, determined that construction of the Formula 1 United States Grand Prix™ track will have an enormously positive economic impact on the local Austin area, as well as on the state-wide economy. The proposed facility is expected to significantly increase direct and indirect sales activity, consumption-based tax gains and construction related jobs.

Through rigorous, objective economic analysis, Dr. Hoyte determined that the Formula 1 track facility construction is expected to increase sales activity in Texas from approximately $11.4 million in 2010 to a peak of $255 million in 2011 before leveling off to $132 million as construction activity winds down in 2012. Overall, state-wide economic activity is expected to increase by approximately $400 million during construction.

Due to the demanding construction schedule, 2011 will serve as the peak construction year. During 2011, the project is expected to spend approximately $144.9 million, of which more than $68.4 million would represent wages injected into the Austin area economy. These wages could be earned by as many as 1,320 local workers. In regards to the increase in jobs across the state, Dr. Hoyte determined that direct expenditures in the peak year could exceed $146 million leading to as many as 1,330 new jobs. The incredible influx of potential new jobs during peak construction year alone could potentially drop the unemployment rate in the Austin metro area from 7.3 to 7.1 percent.

In addition to job, wage and sales gains expected to occur, the state of Texas will experience a considerable increase in tax gains. In particular, activity–based taxes, such as sales and hotel occupancy tax, will generate revenues directly related to construction. During the 18–month construction period, gains in state and local sales and hotel taxes should exceed $6.5 million.

“In coming on board we knew this project would be a world–class facility that will draw visitors to the area from all over the globe,” said William McAdoo, senior vice president and general partner of Austin Commercial, the general contractor selected for the project. “This study reinforces what our team is so looking forward to experiencing through this process. It will be an economic transformation for Austin and for Texas, unlike any that the area has ever experienced.”

According to Dr. Hoyte’s study, the proposed facility is expected to cost between $215 and $242 million. With construction expected to conclude by mid–2012, time is certainly of the essence. Formula 1 facilities worldwide are built specifically for the rigors of the sport, and many new recent facilities have been completed in less than 18 months. Formula 1 has undergone international transformation during the last three decades, from the more vigorous construction of purpose-built tracks to the sport’s increasing global popularity.

“While we have heard some concern over our accelerated construction schedule, we have continued to stay on track,” said Tavo Hellmund, chairman of the Formula 1 United States Grand Prix™. “The Shanghai Circuit was completed in less than 18 months, Bahrain in less than 16 months. We understand the impact that this will have on Austin as well as the state of Texas, and we are looking forward to the first race in 2012.”
About Don Hoyte, Ph.D.

Dr. Don Hoyte began a 25–year career of studying the Texas economy as vice president of economic development at the John Gray Institute at Lamar University in 1983, and continued his analysis for 20 years with the Texas Comptroller’s office, serving under Bob Bullock, John Sharp, Carole Keeton Strayhorn and Susan Combs.

Dr. Hoyte was the director of regional fiscal analysis in the Texas Comptroller’s office that estimated tax and economic impacts in Texas’ 24–state planning regions. He was also the Comptroller’s expert on the economic and tax impacts of Texas’ event trust funds. He developed the methods used by the Comptroller to assess the state and local tax impacts of the 2004 Super Bowl, the 2004 and 2008 NCAA Final Fours, the 2006 MLB All–star game, the 2006 NBA All-star game and the 2007 Big 12 Football Championship among other events.
About Formula 1 United States

Slated to host its first event in 2012, the much-anticipated Grand Prix facility will provide a fully–integrated architectural and entertainment experience for both event participants and visitors. The surrounding landscape of the 3.4–mile circuit allows for maximum elevation changes and a combination of more than 20 turns. Drivers and fans will have the opportunity to enjoy views of the scenic hill country at this state–of–the–art facility that will hold 120,000 fans. The conceptual master plan features additional visitor attractions including a proposed driving/riding experience and seminar building, motorsports driving club, kart track and welcome center.
For more information, visit www.formula1unitedstates.com or contact:
media@formula1unitedstates.com

I take great issue with this statement.

“The Shanghai Circuit was completed in less than 18 months, Bahrain in less than 16 months.

Wasn't the first was a Chinese Government backed initiative that had to work and Bahrain... Are you serious?!?! They have more money than God!

Interesting they didn't mention Korea's hurried up schedule and ultimate debacle of an inaugural race weekend. Weather aside even, that track was not ready to race on.

[Grape]

the real reason they don't run at indy is because like all sports or entertainers, you pay the show to come to town so you can make money....In F1 terms that means you pay Bernie a shit ton of money and don't get the return. F1 looses money in america, period

[Darren M]

the real reason they don't run at indy is because like all sports or entertainers, you pay the show to come to town so you can make money....In F1 terms that means you pay Bernie a shit ton of money and don't get the return. F1 looses money in america, period

I lived in Indy when all of that went down. It was, in part, what you're talking about. The issue around Indy on the radio talk shows, news, etc, wasn't about the money, per se. It was pride. Tony George didn't want to "grovel" to Bernie, period, the end. Tony's attitude was "This is IMS. We've been around longer than F1. F1 should BEG us to be here." Plus there was the huge surface issue and subsequent boycott in 2005. Yes it was about money, but only on the surface. Just my 2¢