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Author
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Topic: what!!!! NO more san jose grandprix
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89 FAKE SNAKE
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Member # 4531
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http://www.mercurynews.com/ci_6867440
After exhausting a $4 million taxpayer subsidy, the 3-year-old San Jose Grand Prix abruptly called it quits Tuesday.
Race organizers said future downtown construction would make the current race circuit unusable and an alternative route couldn't be found in the city. But potentially more troublesome was a local political climate that turned decidedly chilly after the city council approved the much-criticized subsidy in January 2006.
That gave the already money-losing venture no chance of landing additional city funds to pay for an alternate race course.
Reactions to the sudden announcement were as polarized as the political debate that raged over the subsidy itself. Race supporters bemoaned the loss of a high-profile event that drew tens of thousands downtown, while critics bid good riddance to a noisy production that disrupted businesses and created little financial benefit.
The grand prix had been part of the Champ Car World Series, which announced Tuesday that a replacement race would be held next year at Laguna Seca Raceway in Monterey County.
Race President Dale Jantzen said after the July race that a fourth race in San Jose next year was certain. "We are coming back. And we are excited," he said then.
But on Tuesday, Jantzen said the event was "no longer viable in its current location" because of plans by developer Boston Properties to move forward on a three-tower office development on Almaden Boulevard, where the race had
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up its main spectator grandstands.
Grand prix and city officials have known since the downtown course was established in 2005 that Boston Properties could begin construction at any time on its project, which was approved in 2000. The project has been on hold because of the downturn in the market for Silicon Valley office space.
Whether the developer actually plans to begin construction next year remains unknown. Boston Properties regional executive Robert Pester did not respond to a request for comment.
Jantzen said the decision was made based on "direct conversation from Boston Properties." City officials said that while the developer has indicated it may begin building next year, nothing definitive has occurred yet.
The $4 million subsidy - paid both in cash to the race promoter and in city-financed construction and free services to the race - covered the second and third years of the event. The city also would have provided an estimated $600,000 annually in free services - including building inspection and on-duty police and fire protection - for the remaining years of the contract, which was supposed to run until 2014.
The council approved the subsidy in a controversial vote in January 2006, having provided almost no public notice that the request from the grand prix was pending. The quick vote, pushed by then-downtown City Councilwoman Cindy Chavez and opposed by then-Councilman Chuck Reed, was considered a major reason for Reed's 19-point victory over Chavez in last year's mayoral election.
Reed has since made it clear that no new subsidy would be forthcoming, although Jantzen said in July the race would return with no additional city funding.
Chavez was replaced on the council by Sam Liccardo, who said Tuesday that he saw little benefit from the race and was trying to find a way to eliminate all city subsidies for it.
"Outside of the hotels and a few restaurants, most businesses outside of that central race core actually lost money," Liccardo said. "I had a hard time justifying continued expenditures of city money to support it."
Reed said Tuesday that while he was "sad" that the race was canceled, he would not have supported spending any additional money to move the track.
City administrators, who were among the major boosters of the taxpayer subsidy, said Tuesday the race was successful in raising San Jose's international profile.
"We received the kind of economic benefit we were looking for," said Paul Krutko, the city's chief development officer. He said that combined over three years, the race provided an "economic impact" of $70 million, brought in about 300,000 race fans and filled 28,000 room nights.
But the tax revenue generated by the event was considerably less than the subsidy the city paid. City officials estimate the event brought in about $560,000 to city coffers each year. And the final attendance figures were revised significantly after race officials previously announced grossly inflated numbers.
The race had announced an attendance of 155,934 after the 2006 event, later revising it to "about 120,000," of which 83,248 were paid admissions. This year, the paid attendance figure dropped to 81,538.
Jantzen, the race president, acknowledged that the event had lost money every year but had hopes of eventually turning a profit. He said he informed "about a dozen" race employees on Tuesday that they would be laid off.
The race was owned by Don Listwin, a former Cisco Systems executive who recently was named chief executive of Sana Security. Listwin had attempted to use the race to raise money for the Canary Foundation, a charity he founded to fund early cancer-detection research. In events that were independent financially of the grand prix but held during the race weekend, the Canary Foundation reported raising about $3 million over the three years.
Listwin did not respond to a request for comment Tuesday.
Public reaction to the race's demise was decidedly mixed.
"Oh no," said Gerardo Orozco, who works at a food stand outside the Santa Clara County government building. `It was one of the most important events in the city."
Orozco, who has lived in San Jose for two years, said the grand prix reminded him of a race track he used to frequent in his native Veracruz, Mexico. "For me, it was very, very exciting," he said. "It was the first time here in San Jose that I had the opportunity to go to a race."
Others said the city should not have subsidized the race for millions of dollars. "They could have spent that money on the homeless, on all the hungry children," said Denise Encinas, a 47-year-old Wal-Mart employee
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90 COUPE
01 R1 (stock)
04 XR-50(stroked)
06 TT-R50E
SRA & PWA member
Posts: 3075 | From: san jose | Registered: May 2004
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HaulinAss Motorsports
Its a STREETRaceCar!
Member # 541
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posted
Excellent! It was gay as hell anyhow.Bring some kind of real racing to the bay area,not that shit!
Posts: 22472 | From: Sacramento | Registered: Nov 2001
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89 FAKE SNAKE
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Member # 4531
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posted
ay..unleast they raced there unlike alot that go to reno,sac, starbucks etc...dnt have to wait.. ![[Razz]](tongue.gif)
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90 COUPE
01 R1 (stock)
04 XR-50(stroked)
06 TT-R50E
SRA & PWA member
Posts: 3075 | From: san jose | Registered: May 2004
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HaulinAss Motorsports
Its a STREETRaceCar!
Member # 541
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posted
quote:
Originally posted by 89 FAKE SNAKE:
ay..unleast they raced there unlike alot that go to reno,sac, starbucks etc...dnt have to wait..
Yeah TRUE,I guess there was one kewl thing about it though, there are TONS of Bars in walking distance! I wasnt a fan of that style racing though.All 3 years it was held I was offered FREE Full Pass Packages,I never once went ![[Wink]](wink.gif)
Posts: 22472 | From: Sacramento | Registered: Nov 2001
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LQ9SN95
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Member # 7080
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posted
quote:
Originally posted by HaulinAss Motorsports:
Excellent! It was gay as hell anyhow.Bring some kind of real racing to the bay area,not that shit!
+1,000,000
it sucked ball! they shoulda blocked off some long straightaways and made it a drag strip for a few days ![[worship]](graemlins/worship.gif)
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Lq9 swap
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Posts: 8031 | From: Fresno, Ca | Registered: Sep 2006
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Becca
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Member # 7004
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posted
quote:
Originally posted by F8LSN8K:
quote:
Originally posted by HaulinAss Motorsports:
Excellent! It was gay as hell anyhow.Bring some kind of real racing to the bay area,not that shit!
+1,000,000
it sucked ball! they shoulda blocked off some long straightaways and made it a drag strip for a few days
Damn dragracers lol
I personally loved it and went 2 of the 3 years, I missed this year, now I wish I'd gone. If I remember right a Mustang won the Trans Am class the first SJGP!
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Happiness isn't around the corner, happiness IS the corner!
'00 Silverado 1500 LT
'91 Mustang GT
Posts: 111 | From: San Jose, CA | Registered: Aug 2006
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