Comptroller: No state funds for F1 in advance
By Eric Dexheimer and Dave Doolittle | Tuesday, November 15, 2011, 12:04 PM
Texas Comptroller Susan Combs today announced a substantial change in how state funds will be disbursed for the inaugural Formula One race, saying that no money will be spent on that race in advance.
The Texas legislature in 2009 appropriated $25 million from the general fund to support the race. According to correspondence between Combsā office, Formula One boss Bernie Ecclestone and race promoter Tavo Hellmund, the original money wouldāve been paid to F1 a year in advance of the first race to cover the cost of the international sanctioning fee.
Subsequent races would have received funds created by āextraā tax revenue generated from the previous yearās race, up to $25 million annually for 10 years.
The new arrangement appears to stem from concerns over recently announced plans to hold an F1 race in New Jersey scheduled for 2013, construction slowdown this summer at the Austin track and an apparent dispute between Austin race promoters and circuit organizers.
The announcement would appear to free up $25 million in general revenue.
A local group affiliated with the circuit applied for the funds in June but then withdrew the application when it was announced that the first race would be held in November. State law prohibits applications for the funds more than a year in advance of a race.
Combsā statement said:
āLet me state clearly: We have not paid out any money for the Formula 1 event. The only dollars that can be spent on the United States Grand Prix are tax revenues attributable to the successful running of a race. The state of Texas will not be paying any funds in advance of the event. Further, as is the case with all METF events, each application will be reviewed and analyzed for its likely economic impact and only after the race occurs would any funds be disbursed.
If an METF application is submitted, it will be thoroughly vetted and economic impact data scrutinized based on the actual circumstances for that event. Ultimately, I am responsible for protecting the interests of Texas taxpayers, first and foremost. I will not allow taxpayer dollars to be placed at risk. My position on that has not changed.ā
http://www.statesman.com/blogs/cont...011/11/15/comptroller_no_state_funds_for.html
http://www.myfoxaustin.com/dpp/vide...Pending-Contract20111115-ktbcw-#axzz1dhRo2gpyOrganizers of Circuit of The Americas, a premier motor sports racing and entertainment venue being developed in Austin, announced that construction will be placed on hold until a contract is completed, assuring Formula 1 United States Grand Prix will be held in 2012.
While the construction has progressed on schedule, construction will be suspended immediately.
āWe have spent tremendous resources preparing for the formula One and MotoGP Championship races, but the failure to deliver race contracts gives us great concern,ā said Bobby Epstein, founding partner of Circuit of the Americas.
According to a press release the race contract between Formula One and Circuit of The Americas has not been conveyed to Circuit of The Americas per a previously agreed upon timetable.
āIt is in the best interest of all parties to reach a timely resolution,ā said Red McCombs, chairman of McCombs Enterprise and founding partner of Circuit of The Americas.
