The Austin City Council voted 5-2 yesterday to "endorse the U.S. Grand Prix scheduled for a track under construction near Elroy, southeast of downtown Austin," according to Marty Toohey of the AUSTIN AMERICAN-STATESMAN. The endorsement "appears to clear the way for local sponsors to receive $25 million in annual state subsidies over 10 years -- and, although some hurdles remain, to run the first race on June 17, 2012." The city "negotiated a financial contract," which is "intended to guarantee that Austin would not be required to provide $4 million in taxes a year for the event, as race sponsors had originally proposed as part of a complicated set of agreements among the city, state and local F1 sponsors." City Council member Bill Spelman said, "Austin is not liable for any public money." However, critics "remained skeptical that Austin wouldn't be on the hook for that money if the event failed to attract the fans and revenue that organizers expect." The city also has negotiated an "environmental agreement," and officials said that it "would make the Austin race the greenest F1 event in the world." As part of that agreement, local race promoters "agreed to try to move the race from the summer to a cooler time of year, when less sunlight reduces ground-level ozone, a pollutant caused in part by vehicle emissions and that can lead to respiratory problems." Toohey notes the vote "came after more than four hours of council deliberation and often-passionate public testimony for and against the event." Even after the council's approval, "some matters remain unsettled." Two local teachers and an accountant "have filed a lawsuit claiming F1 organizers improperly applied for the state subsidy and should not receive it" (AUSTIN AMERICAN-STATESMAN, 6/30).
