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Racetrack hinges on hefty help from state
By Emily Heffter
Times Snohomish County Bureau
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OLYMPIA — If the state wants a NASCAR speedway built in Snohomish County, it won't come cheaply.
State legislators yesterday heard for the first time what it could take to get racetrack developer International Speedway Corp. (ISC) to build a 75,000-seat track on a site between Marysville and Arlington.
Under a proposal jointly introduced by Snohomish County, the city of Marysville and ISC, the state and possibly the county would be asked to raise about $250 million through the sale of bonds to build the track, estimated to cost $300 million to build. The state would also foot the bill for road improvements around the track, including a possible new interchange on Interstate 5. No estimates have been made for the cost of those improvements.
The $250 million in bonds would be repaid with tax revenue generated by the track. The land would be leased to ISC, local officials said during a 90-minute legislative-committee meeting.
What it would take
Under the proposal:
The state and possibly the county would raise about $250 million through the sale of bonds to build the track. Bonds would be repaid with tax revenue generated by the track.
The state would pay for road improvements around the track.
The track developer would pay about $50 million toward the track's construction and lease the site.
The track developer would pay $50 million toward the track's construction, the city's chief administrative officer, Mary Swenson, told the Legislative Committee on Economic Development and International Relations.
Swenson said that was the amount ISC "threw out" when discussions started. It's just a starting point for negotiations, she said.
"That's the level of investment that we are willing to put in this project," said Lee Combs, senior vice president of corporate development for Daytona Beach, Fla.-based ISC. "It's a significant amount of money."
ISC announced last week that an 850-acre site in Snohomish County is its preferred site for a Northwest racetrack. The proposed 7/8-mile track could open in 2009 on what is now fallow farmland.
Yesterday's meeting offered the first glimpse of what the company is expecting from the state.
In return, ISC would build a speedway that is expected to host two to three big NASCAR race weekends, including at least one Nextel Cup race, each year. A study early this year indicated the track would bring between $87.3 million and $121.8 million in new spending and tax revenue, and create more than 1,300 new jobs.
In lawmakers' hands
The state Legislature is the track's remaining hurdle, and depending on the mood of elected officials and their constituents, it could be a difficult one. Lawmakers will be asked to decide whether the economic-development opportunity posed by a racetrack is worthy of state money at a time when the economy is sluggish.
Last year, the state gave Boeing a $3.2 billion tax break to build a new jetliner in Snohomish County. And public financing for sports stadiums has become commonplace in recent years. In 1997 and 1999, the state and King County offered financing packages to allow for construction of new stadiums for the Mariners and the Seahawks.
Snohomish County Executive Aaron Reardon characterized the track proposal as an opportunity for the entire state to reap huge benefits without making a large investment.
"I do believe this is a good investment for Washington state," he said.
Swenson stressed that Washington's investment wouldn't come from the state's general fund. The bonds would be paid back with sales taxes generated within a public-facilities district, like those put in place to pay for Safeco Field.
Making deals
To get a NASCAR track built, Snohomish County, Marysville and track developer International Speedway Corp. are asking the state to finance a large portion of the project. Similar deals have been struck to woo businesses and sports teams.
Boeing 7E7
To woo the 7E7 jetliner last year, the state Legislature passed a $3.2 billion, 20-year tax break for the aerospace industry that would go into effect only if the 7E7 were built here. Other aspects of the deal included savings for Boeing on unemployment and workers' compensation; a worker-training center; transportation improvements; state staff members committed to responding to Boeing needs; permits and assistance from the city of Everett; improvements to the Port of Everett; and the right for Boeing to operate 7E7 tests 24 hours a day, seven days a week, as long as it obeys noise-abatement laws.
Seahawks Stadium
In 1997, voters approved a $300 million funding package partially financed through taxes on hotel rooms, parking and admissions taxes, lottery revenues, and sales-tax breaks.
Safeco Field
The stadium, which opened in 1999, was financed through a $372 million public package that included a sales tax on restaurants and rental cars inside King County, an admissions tax, lottery revenues and commemorative license plates. The state also returned a percentage of the sales tax collected in King County, and the King County Council passed an ordinance to sell bonds to help pay for construction.
Intel
The company announced it would build a computer plant in Pierce County in 1995 after the Legislature eliminated the sales tax on equipment and machinery for manufacturing businesses and agreed to speed up construction of a DuPont freeway interchange.
Information compiled from Times news sources by researcher Gene Balk.
Transportation improvements would be paid for out of the general fund, but those are needed anyway, Swenson said. For years, residents and representatives of north Snohomish County communities have sought improvements to the stretch of I-5 north of Everett.
As NASCAR has grown in popularity, other states have offered track developers tax breaks and other financing packages to lure speedways. Loyal NASCAR fans will travel long distances to see a race and stay longer than the event lasts, proponents say. For some communities, the economic benefits have been immense.
Drawing interest, concerns
Legislators at yesterday's meeting in Olympia had a lot of questions for the track developer, but many weren't ready to discuss funding. They were still deciding whether a track in Snohomish County is a good idea.
"NASCAR is just one more element to an already very saturated area," said Rep. Bill Eickmeyer, D-Belfair.
Rep. Maralyn Chase, D-Edmonds, said she was intrigued by the presentation.
"On the surface, it looks very good," said Chase, a member of the House's Trade and Economic Development Committee. "But I think we need to sharpen our pencils, and we have not had that opportunity."
ISC's Combs warned that the company will walk away from the deal unless the Legislature adjusts public-financing laws in its 2005 session and makes road improvements "in a timely manner."
"The bottom line ... is to make sure that there's no real money coming out of the taxpayer's pocket," said Sen. Dave Schmidt, R-Mill Creek. "I had made the commitment [that] we're not going to give away the farm."
The deal proposed yesterday was reasonable, he said, because the loan would be repaid with new revenue.
Snohomish County Council Chairman John Koster said he was surprised ISC offered only $50 million. But he said transportation improvements are a more pressing issue. Those could run into problems in the Senate Transportation Committee, where the ranking Democrat, Sen. Mary Margaret Haugen of Camano Island has said she doesn't support a track.
Members of a neighborhood group that opposes the track said the proposal asked for more public funding than they had feared.
"I just think that's incredible," said Eyleen Shouman, who lives in Arlington's Gleneagle neighborhood, a short distance from the proposed track site.
Snohomish County residents will have an opportunity to voice their opinions at a public hearing that the Legislative Committee on Economic Development and International Relations will hold in Snohomish County, probably in November, said Lt. Gov. Brad Owen, committee chairman. The committee includes key legislators from the House and Senate and is charged with studying economic-development issues on behalf of the Legislature.
In the meantime, Marysville Mayor Dennis Kendall said, his city and the county will sign a letter of intent with the speedway developer, making the arrangement more official.
"This comes right down to what the Legislature is willing to do," Koster said. "Because without a legislative package, this dog can't hunt."
Racetrack hinges on hefty help from state
By Emily Heffter
Times Snohomish County Bureau
E-mail this article
Print this article
Search archive
Most read articles
Most e-mailed articles
OLYMPIA — If the state wants a NASCAR speedway built in Snohomish County, it won't come cheaply.
State legislators yesterday heard for the first time what it could take to get racetrack developer International Speedway Corp. (ISC) to build a 75,000-seat track on a site between Marysville and Arlington.
Under a proposal jointly introduced by Snohomish County, the city of Marysville and ISC, the state and possibly the county would be asked to raise about $250 million through the sale of bonds to build the track, estimated to cost $300 million to build. The state would also foot the bill for road improvements around the track, including a possible new interchange on Interstate 5. No estimates have been made for the cost of those improvements.
The $250 million in bonds would be repaid with tax revenue generated by the track. The land would be leased to ISC, local officials said during a 90-minute legislative-committee meeting.
What it would take
Under the proposal:
The state and possibly the county would raise about $250 million through the sale of bonds to build the track. Bonds would be repaid with tax revenue generated by the track.
The state would pay for road improvements around the track.
The track developer would pay about $50 million toward the track's construction and lease the site.
The track developer would pay $50 million toward the track's construction, the city's chief administrative officer, Mary Swenson, told the Legislative Committee on Economic Development and International Relations.
Swenson said that was the amount ISC "threw out" when discussions started. It's just a starting point for negotiations, she said.
"That's the level of investment that we are willing to put in this project," said Lee Combs, senior vice president of corporate development for Daytona Beach, Fla.-based ISC. "It's a significant amount of money."
ISC announced last week that an 850-acre site in Snohomish County is its preferred site for a Northwest racetrack. The proposed 7/8-mile track could open in 2009 on what is now fallow farmland.
Yesterday's meeting offered the first glimpse of what the company is expecting from the state.
In return, ISC would build a speedway that is expected to host two to three big NASCAR race weekends, including at least one Nextel Cup race, each year. A study early this year indicated the track would bring between $87.3 million and $121.8 million in new spending and tax revenue, and create more than 1,300 new jobs.
In lawmakers' hands
The state Legislature is the track's remaining hurdle, and depending on the mood of elected officials and their constituents, it could be a difficult one. Lawmakers will be asked to decide whether the economic-development opportunity posed by a racetrack is worthy of state money at a time when the economy is sluggish.
Last year, the state gave Boeing a $3.2 billion tax break to build a new jetliner in Snohomish County. And public financing for sports stadiums has become commonplace in recent years. In 1997 and 1999, the state and King County offered financing packages to allow for construction of new stadiums for the Mariners and the Seahawks.
Snohomish County Executive Aaron Reardon characterized the track proposal as an opportunity for the entire state to reap huge benefits without making a large investment.
"I do believe this is a good investment for Washington state," he said.
Swenson stressed that Washington's investment wouldn't come from the state's general fund. The bonds would be paid back with sales taxes generated within a public-facilities district, like those put in place to pay for Safeco Field.
Making deals
To get a NASCAR track built, Snohomish County, Marysville and track developer International Speedway Corp. are asking the state to finance a large portion of the project. Similar deals have been struck to woo businesses and sports teams.
Boeing 7E7
To woo the 7E7 jetliner last year, the state Legislature passed a $3.2 billion, 20-year tax break for the aerospace industry that would go into effect only if the 7E7 were built here. Other aspects of the deal included savings for Boeing on unemployment and workers' compensation; a worker-training center; transportation improvements; state staff members committed to responding to Boeing needs; permits and assistance from the city of Everett; improvements to the Port of Everett; and the right for Boeing to operate 7E7 tests 24 hours a day, seven days a week, as long as it obeys noise-abatement laws.
Seahawks Stadium
In 1997, voters approved a $300 million funding package partially financed through taxes on hotel rooms, parking and admissions taxes, lottery revenues, and sales-tax breaks.
Safeco Field
The stadium, which opened in 1999, was financed through a $372 million public package that included a sales tax on restaurants and rental cars inside King County, an admissions tax, lottery revenues and commemorative license plates. The state also returned a percentage of the sales tax collected in King County, and the King County Council passed an ordinance to sell bonds to help pay for construction.
Intel
The company announced it would build a computer plant in Pierce County in 1995 after the Legislature eliminated the sales tax on equipment and machinery for manufacturing businesses and agreed to speed up construction of a DuPont freeway interchange.
Information compiled from Times news sources by researcher Gene Balk.
Transportation improvements would be paid for out of the general fund, but those are needed anyway, Swenson said. For years, residents and representatives of north Snohomish County communities have sought improvements to the stretch of I-5 north of Everett.
As NASCAR has grown in popularity, other states have offered track developers tax breaks and other financing packages to lure speedways. Loyal NASCAR fans will travel long distances to see a race and stay longer than the event lasts, proponents say. For some communities, the economic benefits have been immense.
Drawing interest, concerns
Legislators at yesterday's meeting in Olympia had a lot of questions for the track developer, but many weren't ready to discuss funding. They were still deciding whether a track in Snohomish County is a good idea.
"NASCAR is just one more element to an already very saturated area," said Rep. Bill Eickmeyer, D-Belfair.
Rep. Maralyn Chase, D-Edmonds, said she was intrigued by the presentation.
"On the surface, it looks very good," said Chase, a member of the House's Trade and Economic Development Committee. "But I think we need to sharpen our pencils, and we have not had that opportunity."
ISC's Combs warned that the company will walk away from the deal unless the Legislature adjusts public-financing laws in its 2005 session and makes road improvements "in a timely manner."
"The bottom line ... is to make sure that there's no real money coming out of the taxpayer's pocket," said Sen. Dave Schmidt, R-Mill Creek. "I had made the commitment [that] we're not going to give away the farm."
The deal proposed yesterday was reasonable, he said, because the loan would be repaid with new revenue.
Snohomish County Council Chairman John Koster said he was surprised ISC offered only $50 million. But he said transportation improvements are a more pressing issue. Those could run into problems in the Senate Transportation Committee, where the ranking Democrat, Sen. Mary Margaret Haugen of Camano Island has said she doesn't support a track.
Members of a neighborhood group that opposes the track said the proposal asked for more public funding than they had feared.
"I just think that's incredible," said Eyleen Shouman, who lives in Arlington's Gleneagle neighborhood, a short distance from the proposed track site.
Snohomish County residents will have an opportunity to voice their opinions at a public hearing that the Legislative Committee on Economic Development and International Relations will hold in Snohomish County, probably in November, said Lt. Gov. Brad Owen, committee chairman. The committee includes key legislators from the House and Senate and is charged with studying economic-development issues on behalf of the Legislature.
In the meantime, Marysville Mayor Dennis Kendall said, his city and the county will sign a letter of intent with the speedway developer, making the arrangement more official.
"This comes right down to what the Legislature is willing to do," Koster said. "Because without a legislative package, this dog can't hunt."
