NASCAR could bring big bucks

By Jane Hodges
Times Snohomish County bureau

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A racetrack for NASCAR and other motorsports events in the Puget Sound region could generate $87.3 million to $121.8 million in new revenue annually — with over three-fourths of that money coming from out-of-state wallets, according to a study released yesterday by a group backing the idea.

Between 45 and 60 percent of the 77,000-seat track's visitors would travel from outside Washington, spending up to $709 apiece during race-event weekends, the study projects.

Attracting new spending from out of state is a key selling point for the track.

"It's all new money for the state," said Sen. Tim Sheldon, D-Potlatch, Mason County, chairman of the Senate Economic Development Committee.

The study, commissioned by a group of businesses and economic-development leaders known as the Checkered Flag Task Force, also concludes the track could generate $2.5 million to $4 million in new state tax revenue and $3.7 million to $4.5 million in local tax revenue annually.

Making tracks Estimated annual economic impact of a new track seating 77,000 in the Puget Sound region: • Total revenue generated: $87.3 million to $121.8 million • Annual tax revenues (state): $2.5 million to $4 million • Annual tax revenues (local): $3.7 million to $4.5 million, depending on the site • Average event spending: Up to $709 per visitor per race event Source: Berk & Associates

Construction of the $140 million track would create an additional $128 million in indirect spending in the region, and 3,000 workers would earn $120.1 million payroll while building it, according to the study.

About 13.9 million people will live within a 400-mile radius of the track — a typical "trade area" around NASCAR races and one that here includes parts of Canada, Oregon, Idaho, Montana and possibly Northern California.

The $25,000 study was conducted by the Seattle research firm Berk & Associates.

Unlike previous financial projections about a track's possible impact here, which were based on research from other communities, this data is customized for Washington state and should give state lawmakers, businesses and residents a more accurate picture of a track's effect on the state, said Richard Chapman, vice president of corporate advisory services at the Economic Development Council of Seattle & King County.

Executives from Daytona Beach, Fla.-based developer International Speedway Corp. (ISC) have visited Washington and Oregon regularly since September to view 500-acre or larger properties where the company could build a track with seating for 70,000 to 90,000.

In Washington, economic-development officials from Kitsap, Mason, Thurston and Snohomish counties have proposed locations, and ISC executives have said they will try to identify a site — - or a short list of sites — - this year.

ISC executives met with lawmakers in February and presented outside as well as internal economic research from their 13 tracks in the United States.

The Berk research tells a more modest story than the ISC figures but still shows a significant impact, said researchers and economic-development officials.

"These are big numbers we're talking about," said Brett Scheckler, a Berk researcher who worked on the project.

Sheldon said the numbers are encouraging and that he considers the track among the state's top economic-development priorities this year.

"This is a unique industry we don't already have," Sheldon said. "This will also attract (revenue from) people from out of town."

Scheckler and Michael Hodgins, Berk researchers who led the study, said their calculations assumed the track would host two sold-out national race events (such as NASCAR Nextel Cup, Busch Series or similar races) and one regional event that filled fewer than half of the track's seats.

Revenue from out-of-state visitors would range from $65.8 million to $98.4 million annually.

Those out-of-state dollars are the ones that are most significant for economic development.

ISC officials said tracks typically bring in $100 million in revenue annually, with an additional $200 million to $300 million in indirect spending.

John Graham, ISC's vice president of business affairs, said the Berk study's numbers for revenue from out-of-state visitors seem "on the extremely conservative side."

Graham said that other elements of the research were consistent with ISC's experience in other markets, including Berk's assumption that 45 to 60 percent of all race visitors will come from out of state.

The Berk researchers said the study did not attempt to predict the economic impact of new retail, hotel or restaurant businesses opening nearby.

Such development has contributed to the success of ISC's Kansas Speedway in Kansas City, where a tourism district has sprung up near the track with shopping, a ballfield, hotels and restaurants.

Once a site is named, Sheldon said state and local governments would be wise to pursue piggyback developments in the area. He said one developer has approached him about building a luxury RV park if a track is built at one prospective site along the Kitsap-Mason border.

"The secondary effects of this type of track are big," he said.

Sheldon said that he wants to convene a meeting this fall to discuss possible track-related legislation in advance of the 2005 session. In the interim, some counties and municipalities have scheduled public hearings to discuss the economic, as well as environmental, impacts of a track.

Jane Hodges: 425-745-7813 or jhodges@seattletimes.com

Copyright © 2004 The Seattle Times Company

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