NASCAR track financing unveiled

BREMERTON — A Florida racetrack developer wants $179 million in taxpayer money to build a NASCAR speedway near the Bremerton Airport.

International Speedway Corp. (ISC) will pick up the the remaining $166 million — or 48 percent — of the $345 million project costs, company officials announced Wednesday. If it can convince state lawmakers the track would be a good deal, it plans to start racing on the 80,000-seat, 1.2-mile track in 2010.

The financing proposal — made public for the first time Wednesday — swivels on the premise that out-of-state NASCAR fans would flock to races and spend an average of $1,000 each per weekend. ISC expects to host two major race weekends annually.

Under the ISC financial model, all of the state bonds would be repaid with additional sales taxes that businesses collect on a projected $4 billion in race-fan spending in the next 30 years. An additional $13 million to build the speedway would come from Kitsap County's tax on ticket sales.

ISC will take its plan to the Legislature when it convenes Jan. 6.

Project director Grant Lynch, one of ISC's regional vice presidents, said his company is offering "the most balanced public/private partnership ... ever presented to the state of Washington."

The company's proposed contribution is much higher than it offered in a similar proposal last year to build a track in Snohomish County. For that deal, they offered to pay $50 million of the $300 million project costs. It fell through about a year ago when land costs escalated and Snohomish County backed out.

Margarita Prentice, D-Renton, the chairwoman of the Senate Ways and Means Committee, said she doesn't expect the Bremerton-area track proposal to succeed.

"For that kind of expenditure, especially in a 60-day session, you would have to have incredible momentum now and it's not there," she said. "The more I think about it, the less feasible it seems."

Gov. Christine Gregoire hasn't taken a position on the track, said Office of Financial Management spokesman Ed Penhale.

"She is waiting to see what legislators think about it and she's also waiting to hear what the local community thinks," he said.

But the office's analysis determined that ISC's financial model was "reasonable," he said.

State Treasurer Mike Murphy continued to oppose the project. "I find it quite galling that they think that they can just walk in and have this big giveaway from the government," he said. "I don't quite understand it."

If everything goes as ISC expects, the state general fund would end up with no costs and about $43 million left over at the end of the 25-year bond term.

"It's going to pay for itself," said Lt. Gov. Brad Owen, who is president of the state Senate. "It's a wise investment for the state to make. It's like having two or three Super Bowls a year."

Owen said he wasn't concerned about Murphy's opposition, but he said the project would need Prentice's support to go forward.

"I think Margarita Prentice is a person who can be talked to and could be worked with," he said.

Kitsap County Commissioner Chris Endresen said it was too early to take a position on the proposal, but she said she objects to using public money for a sports facility. The other two Kitsap County commissioners, Jan Angel and Patty Lent, could not be reached for comment.

ISC already has an option to buy about 950 acres near the Mason/ Kitsap counties line. The county commission would have to agree to rezone the land — currently zoned light industrial and rural residential — to allow a track. Under the proposal, Kitsap County would waive its usual ticket tax on race tickets.

The county charges a 5 percent tax on entertainment tickets, including for the fair and movies. At the racetrack, ISC would collect a 4 percent admissions tax and the county would receive the proceeds of a 1 percent tax.

ISC would collect about $13 million through the admission tax toward the track costs.

Tickets to the facility would only be sold at about $300 for season ticket packages, ISC officials said.

The county wouldn't charge the facility any other county taxes. Under the proposal, leasehold excise taxes would be waived and the facility would be publicly owned by a taxing district so it wouldn't pay property taxes.

One of Prentice's biggest concerns, she said, is transportation. ISC said the only road improvement needed for the project is about $10 million worth of local road widenings. Company officials said they were "still in negotiations" about who would pay for those improvements.

For about three large events a year, the facility would use "cops and cones" to route traffic to the track, as well as buses, carpools and ferries.

Emily Heffter: 206-464-8246

or eheffter@seattletimes.com