BALTIMORE -- Time has run out for the operators of the Grand Prix in Baltimore, according to the mayor's office.
City officials announced the termination of an agreement -- effective immediately -- with Baltimore Racing Development for "failing to honor terms of its Motorsports Development Agreement with the city."
The city continues to demand immediate payment of public debts owed. "Without an agreement, BRD cannot conduct the Baltimore Grand Prix in future years," according to the city's statement.
According to the mayor's office, the BRD owes to the city
$700,000 in reimbursement costs for city services; $487,971 in admissions and amusement taxes; a $250,000 racing event fee; and $50,862 owed to the Parking Authority of Baltimore City for parking at city-owned facilities during the Grand Prix. The city is also requesting an additional $250,000 for services that were to be provided by BRD in the Event Management Plan were not provided by BRD to the extent planned for and required.
"I hoped that BRD would restructure, recapitalize and begin to pay taxes and debts by the Dec. 31 deadline. BRD's corporate officers and managers have failed to take the appropriate steps to put the company on a sustainable path forward," Mayor Stephanie Rawlings-Blake said in a statement.
A response from the BRD was not immediately available. The mayor's office declined to comment further.
A plan outlined last week would have given former Goldman Sachs and Constellation Energy executive Felix J. Dawson leadership of BRD, which is $12 million in debt.
The city said it established clear terms in November to pay taxes and debts owed to the city and work to repay any debts to vendors. Documents indicate race organizers owe $3.1 million to vendors; $2.5 million to the Maryland Stadium Authority; $1.9 million to Baltimore City; $1.7 million in contractual payments; $600,000 to state economic development agencies; $600,000 to M&T Bank and $800,000 in loans from members.
In addition, court records reveal $1.2 million in lawsuits filed against the organizers.
"The Grand Prix generated $47 million in economic impact and proved valuable in terms of positive media exposure and civic pride for Baltimore's residents," Rawlings-Blake said. "The event, if conducted responsibly, has significant economic value to potential investors and the city this year and in future years."
Read more: http://www.wbaltv.com/news/30105743/...#ixzz1i3wuKDUU
Baltimore turned out to be an unexpectedly nice race venue, actually. I'd be upset if it was Champ Car, but since it's lowly IRL and there's going to be a *real* Grand Prix up in Jersey/Manhattan starting in 2013, I've no problem seeing it taken off the calendar.
I live just outside of Baltimore. Let me tell you this, Baltimore politics are embarrassing to the human race. Let me set this up with fact:
Our last mayor was indicted for theft. During which, her married boyfriend was on trial for being crooked, and the ENTIRE city council was being investigated for one thing or another. They lie about the crime rate, taxes, and anything else that suits their immediate needs. Keep that in mind . . .
I have not read the specifics of the problem. But, I am not surprised that Baltimore politicians, for whatever reasons, could not work out a deal that would benefit the image and welfare of the people who live in the city.
They should have never wasted their time.
The roads were redone but even then, they still thrashed and bashed the cars they were still so terrible. bet the roads cost race teams serious dough
I do regret not going now as well. My figures above are a bit off, but the total amount owed to the city is close and the revenue is too, just didnt include the vendor repayment and the rest of that junk.
My best thread topic ever I've contributed to TCL earlier this year (you could say I was just the first to post it):
Last edited by DrFrisker; 12-31-2011 at 01:46 AM.
Buy your little enthusiast a Ferrari bike from me.
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And this area gets screwed over yet again having sportscar racing. !@!@#!!! See Washington DC Grand Prix that had BIG attendance, but the promoters went belly-up as well.
The more serious note is what this means for the ALMS. THAT part has me concerned and I'm hoping that they have a back up plan so we don't have a HUGE gap before PLM in the schedule.
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Gotta love Maryland, Chasing away another company that was bringing the state revenue.
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DC did the same thing. They reelected Marion Barry like 10 times. I think he is still an elected official in some capacity. Baltimore is very much like it.
My favorite is when I drive to visit my fiances parents in AA county. I drive through DC, hope on 50 and drive towards Annapolis. I have to drive through PG county (every day there are 4 murders) and their welcome sign cracks me up. It was "a livable community" and now its "on the way to greatness."
You think you hate it now. Wait til you drive it.