Gateway RUMOR

[fastdiesel]

From the web...

PBIR GROUP LOOKING AT GATEWAY?
Written by Susan Wade Sunday, 06 February 2011 09:00



Although the PRO Winter Warm-up featured most of the top NHRA teams, Palm Beach International Raceway is an IHRA-sanctioned facility. Chris McMahan, the venue's director of race operations said Saturday that its owners are eyeing former NHRA-sanctioned property in the Midwest to complement its recent acquisition of Memphis Motorsports Park.

"The ownership is interested in purchasing Gateway right now," he said, referring to Gateway International Raceway at Madison, Ill., just across the Mississippi River from St. Louis. "The ownership is interested in buying multiple tracks but just one thing at a time. Memphis is the first piece to the puzzle."

He wasn't divulging what the entire puzzle will look like but offered a "No comment on that topic whatsoever" when asked if the PBIR ownership group is exploring making an offer to Feld Entertainment for the IHRA. Pressed whether a "no comment" might mean a possible "yes," McMahan replied, "Probably a no. Just the way we're wanting to go. There's a lot of things we're looking to do, looking at a different [business] picture, and taking the sport to a whole different level. There is a plan."

The short-term plan is to improve the Memphis facility that used to host the NHRA's Mid-South Nationals.

"The group just did a new design for the logo for Memphis," McMahan said. "Right now, the short-term focus is to get that up and running; just get some drag racing going on there again."

The Memphis racetrack will be an IHRA-sanctioned facility, and McMahan said that the ownership group would love to add a 2011 Nitro Jam event to the IHRA's schedule.

"That is in discussion," he said. "We would love to see that happen yet this year. We just don't know when it's going to fit in the schedule."

[Dave Schultz]

Before anyone buys Gateway -- there would have to be a big change in State and local politics.

First -- the the track owes some major money in bonds to the locals that ponied up to build the track. Maturity of the bonds have been delayed for years and there are a lot of pissed off bondholders. I'm sure the bondholders will settle for less than their principle ( a bird in the hand....) -- but then there's

Taxes. Rumor is that the track owes a lot of state, county and local taxes. Illinois has a tendency of biting the hand that feeds it with taxes. It is chasing away what few businesses are left there with their 66% state tax increase. Will they not only forgive past taxes but come up with reasonable taxes if the track reopens -- or will they be so stubborn that no one will ever be able to afford to open the track and pay reasonable taxes?

Then there's the locals. I heard that at the last Monster, the local government wanted a crazy tent fee for every vendor tent erected -- or they'd shut down the event. It would appear that there is so much bitterness that a conflict between track and city has occurred.

Then there's the dependability of the utilities. I heard the last NASCAR race was a blackout/brownout horror story.

There sure is a lot of things working against any potential owner of the track -- not the least being stubborn governments that will cut off their noses in spite of their face. My opinion is that Tax forgiveness and a long term package for a new owner would be the only way someone would take that track.

Its a shame as it is a nice track -- but every month that goes by with the track being claimed by nature -- the least likely it will return to its past glory.

[67goingthing]

I hope the rumor is true but as a citizen of Illinois I agree with Dave that this state is not business friendly. We are being raped daily with higher taxes and less freedom.

[dagored]

Feb 13, 2011 23:15:35 GMT -5 67goingthing said:

I hope the rumor is true but as a citizen of Illinois I agree with Dave that this state is not business friendly. We are being raped daily with higher taxes and less freedom.

To hear the news people tell it EVERYONE in Illinois just LOVES the Reverend Barry O...............................

Gee guessed wrong again.

[Dave Schultz]

any updates on Gateway?

News links?

[fastdiesel]

Dover relinquished their property at Gateway, to make it easier to close a deal.

Looks like all 'persons' are on the page to change ownership to PBIR......BUT.....I've heard nothing from the GOVERNMENT!! That's gonna be the tough one, from what everyone keeps saying about the state.

FROM THE WEB:

Gateway International Raceway, which ceased operations last November, could be back in business by July if negotiations continue moving forward to sell the track to a Florida investment firm.

Three weeks ago, Dover Motorsports Inc. terminated its leases with three of the four parties who own a majority of the racetrack, setting the stage for the negotiations. The Delaware company bought Gateway in 1998 from its original owner, Chris Pook.

Dover also owned 18.5 acres of the Gateway property but relinquished it as part of the deal.

"The owners are putting together a strategic plan with the intent of returning Gateway International Raceway to full operating status within the next 120 days," said Clayton attorney Bob West, who represents one of the parties who owns the lease at GIR. "That is our goal."

Moroso Investment Partners, a group that owns Palm Beach (Fla.) International Raceway, is trying to buy Gateway. It bought Memphis Motorsports Park at auction from Dover in December for $2M.