Uh, Oh... F1 track work stops amid dispute

[enzo1]

Almost a year from a race premiere, Austin's $300 million project to bring international Formula One racing to the United States ground to an unexpected and perilous halt Tuesday.

Key investors in Circuit of the Americas said they are immediately and indefinitely suspending construction of the 3.4-mile racetrack just southeast of Austin, a move that idles about 300 workers.

Also, Texas Comptroller Susan Combs announced a change in plans to provide a $25 million a year in state financial incentives to the project, saying a first payment would not be made until after the initial F1 race is held as currently scheduled on Nov. 18, 2012. Previously, it was thought that the payment could be made at any point up to a year in advance of the race.

Circuit investors, including San Antonio billionaire Red McCombs and local businessman Bobby Epstein, said construction was halted because they have yet to obtain the rights for the F1 race from promoter Tavo Hellmund.

Hellmund, a local former race driver, is a longtime friend of Formula One boss Bernie Ecclestone.

In September, the Statesman reported that a possible change in the track's promoter or management was raising questions about the future of the project. At the time, work at the site had noticeably slowed.

No one at the time would openly confirm that there was any disconnect between promoter and investors.

However, when asked recently about the progress of the Austin project, Ecclestone said, "There are two parties. One is building a track, the other has the contract, and they've forgotten to talk to each other."

Speaking for the investors group Tuesday, Epstein said, "I don't know why Formula One would want to kill this race. The money is in place; the project is on time. All COTA needs is for Formula One to convey the original contracts that were in place for a long time."

The discord and uncertainty comes at a ticklish time for the project, and people speaking for Circuit of the Americas would not say when construction would have to restart if Austin is to have a chance to join cities such as Monaco, Singapore and São Paulo on the 2012 F1 calendar.

However, Epstein said, "Construction has to resume in the very near future."

The track has been designed to accommodate 120,000 spectators per day. A three-day weekend of racing might attract an audience of as many as 300,000.

Projections for the economic impact of the race on the Austin area range as high as $288 million per year. That figure is a major reason the race is scheduled to receive an annual subsidy of $25 million for 10 years from the state's Major Events Trust Fund. By law, that payment could be made in a matter of days — a year out from the event.

Combs has been a big supporter of the race since 2008, when Hellmund first pitched the idea to her.

Tuesday she introduced some doubt, citing "recently publicized disagreements between the race right holders and the circuit developers," slowdowns at the Austin construction site and a potentially competitive F1 race recently awarded to New Jersey as reasons for concern.

Speaking shortly before the investors took action, Combs said, "The State of Texas will not be paying any funds in advance of the event. Further, as is the case with all (Major Events Trust Fund) events, each application will be reviewed and analyzed for its likely economic impact, and only after the race occurs would any funds be disbursed."

No state money has been spent on the F1 race project, Combs emphasized.

Although construction at the circuit had slowed in late summer, it had sped up in recent weeks. According to Circuit of the Americas officials, there were 300 workers on the site last week. The site also was busy Monday as above-ground construction on the paddock had begun. A spokesperson for the circuit said workers and contractors would be paid for work done.

"The saddest part about today for me really is the hundreds of folks and hundreds of families tonight that are going to have one very difficult conversation because hundreds of folks were put out of work today," said Austin City Council Member Mike Martinez.

Developers have maintained that they were on target with construction. Paving of the 3.4-mile track on the 1,100-acre property was scheduled to begin next year, and permits from Travis County were obtained two weeks ago for the construction of five buildings, including the main grandstand.

[masraum]

I hope they get this worked out! I was really hoping to go see an F1 race next year.

[Joeaksa]

Wonderful... this needs to be settled.

[mattdavis11]

I think this was to be expected once F1 announced the NJ race. The state isn't going to pay until after the race now, thus Bernie and crew lose interest.

I'm sure the deal was; The state pays the promoters, then Bernie sends the contract and gets his money.

I doubt the race happens.

[strupgolf]

I read today that the promoters do not have a contract with F1 yet. I thought that was needed before spending any money to build. Without it, Bernie could walk away anytime. I always doubted any race would happen there, and now with NJ, so many more people nearby to pull from.

[Zeke]

Once the shell is cracked the egg is no longer good to use. I sensed this deal was flawed from the time the race date was moved several months from June to Nov.

Now all the parties involved can stand on the edge of one of the canyons they've carved out and piss into it. That's pretty much what they've done all along is piss away time and money.

[Zeke]

Once the shell is cracked the egg is no longer good to use. I sensed this deal was flawed from the time the race date was moved several months from June to Nov.

Now all the parties involved can stand on the edge of one of the canyons they've carved out and piss into it. That's pretty much what they've done all along is piss away time and money.

[Porsche-O-Phile]

My prediction is a bunch of lawyers will get involved, argue this thing for months and Bernie will say "F it" and announce no USGP and a new race in Asia.

It was fun while it lasted...

[Tervuren]

Seems like American businesses just can't get it right with F1.

[nostatic]

As soon as the NJ race was announced I figured TX was toast. Bernie is no fool, but sounds like those involved in the Austin side of things might be.

[Flieger]

F1 has no technical freedom anymore. The racing is either boring or contrived to increase passing. I have lost interest in it. I say good riddance.

Might be nice to finish the track so some real racing could take place there like ALMS and club racing.

[Flieger]

On the other hand...

[Noah930]

Heh heh. I was thinking just that, Max. Would be a good time to sneak onto the premises this weekend with a couple Trophy Trucks or dirt bikes.

[pwd72s]

Originally Posted by mattdavis11

I think this was to be expected once F1 announced the NJ race. The state isn't going to pay until after the race now, thus Bernie and crew lose interest.

I'm sure the deal was; The state pays the promoters, then Bernie sends the contract and gets his money.

I doubt the race happens.

IMO, Bernie is a butt!

[Captain Ahab Jr]

Originally Posted by Tervuren

Seems like American businesses just can't get it right with F1.

A real shame

I still get annoyed thinking about the joke team USF1 effort, too many cowboys and not enough indians involved. It would have been great to have a US based team but can't seeing anyone else having a go for a very long time.

Flieger, there is still some technical freedom left but you need to look hard for it now

[mattdavis11]

I don't know who threw down what to make this failure begin, other than Red MCombs, he has something in it, I think.

As a tax payer, I could care less, no state funds went toward, what I believe would have been, an eventual flop. I don't even feel sorry for the ones left holding the bag of shyte.

If you want to know which state politicians got played, I will divulge, but it will have to be in PARF.

The people who bought the land, and prospectors buying nearby land just took a huge hit. Elroy is not a desirable community, in fact, it's a total dump. Seriously, fans would have lost their wine and cheese going to and from the track.

I read another article that tried to tie Hellmund to a moto GP guy. Schwantz something or other, to move his bike school from Bama to the track. Apparently he lives in Bastrop, about 20 minutes away, and has some sort of promotion agency. I don't know the truth to it all, but it seems as if the promoter(s) dropped the ball.

[Flieger]

Originally Posted by Captain Ahab Jr

A real shame

I still get annoyed thinking about the joke team USF1 effort, too many cowboys and not enough indians involved. It would have been great to have a US based team but can't seeing anyone else having a go for a very long time.

Flieger, there is still some technical freedom left but you need to look hard for it now

Well, anything they come up with is subsequently banned. They start getting active suspension working... banned. Traction control, other electronics... banned. F-ducts... banned. Exhaust blown diffusers... banned. F1 cars would look a lot different if they could design them how they wanted to. Wings would be mounted to the uprights and able to change angle of attack, wheels would be enclosed, driver too, active suspension, maybe the return of 'sucker' cars like the Alfa Brabham or Chaparral (spelling?), the list goes on. Berylium-Aluminum alloys, etc.

Controlling costs? How about actually using the products of all that research and development.

F1 cars don't even have variable valve timing. Variable-geometry or twin turbos are not allowed in the new rules.

Have they finally allowed flywheel KERS? That was banned for a while after Williams put all that effort into it.

Luckily ACO and sportscar racing has picked up the ball after F1 dropped it.

[Flieger]

IMO, the group C formula was the right one. Limit the amount of fuel flow to the engine if you want to limit hp or limit the amount of fuel available for the race if you want to make the cars 'greener'. Then let the engineers have at it. Cars too fast? Cut the fuel allowance back. That is the way to challenge engineers and bring about useful innovations.

[Joe Bob]

Sounds like Bernie took lessons from Al Davis.....

[strupgolf]

First the USF1 team took a dump, and now the USA track takes a dump. Sad