A proposal to build a massive, $200 million auto-racing complex in north Aurora may thrill racing fans, but several major issues need to be addressed before anyone gets too revved up over it.
Led by Colorado Springs developer Bill Schuck, the plan is to build a 1-mile oval speedway, a 4-mile road course and a go-kart facility on 1,500 acres of land southeast of Denver International Airport. The stadium would seat between 65,000 and 100,000 fans, and the site would include a hotel, shopping and other commercial development near Interstate 70.
Backers suggest it could pump $250 million into the region annually.
But there’s a catch: Proponents want taxpayers to pick up part of the tab.
Not only do the developers want to apply for federal stimulus money, which seems odd, they also want to be among the first to apply for up to $50 million in state sales tax revenue potentially available under a proposal pitched by Gov. Bill Ritter’s economic development office.
Ritter has yet to sign Senate Bill 173, also known as the Colorado Tourism Act. It would give local governments the ability to use a portion of state sales tax revenue from a specific area — up to $50 million a year — to help finance the construction of regional tourism projects that attract out-of-state visitors. (Even though Ritter’s office pitched the bill, he hasn’t committed to signing it until he hears from opponents.)
Assuming he signs it — and we’re guessing he will, since it’s his bill — a yet-unnamed, nine-member economic development commission controlled by the governor and legislature would then decide whether to approve the money. The very structure of this committee puts an enormous amount of power in very few hands. Public commitments of this magnitude ought to be subject to a broader approval process.
For example, in order to offer tax money, the commission should first decide if this venture can succeed financially. What if backers never land a NASCAR event, which can make or break a racetrack?
Proponents say they can succeed with or without NASCAR and they’ll toss piles of economic development reports jammed with rosy statistics onto the commission’s table suggesting just that. Unlike when statewide voters approved spending tax money to build Invesco Field, a small, handpicked group would be in charge of authorizing the spending of millions in tax dollars.
Also, we realize the proposal is still developing, but Aurora needs to be included in ongoing talks as soon as possible. It was a little surprising to read on Thursday that Aurora officials had yet to be approached about the massive facility that would lie inside its borders. As Aurora Councilman Ryan Frazier pointed out, residents may be asked to approve a tax hike to pay for infrastructure to the site, such as roads and water.
The racetrack may, indeed, be a tremendous economic boost for Colorado, and quite a bit of fun to boot. However, many questions need to be answered first.
To use a little racing terminology, we’re just waving the yellow flag and urging some caution.
