SBD/December 12, 2012/Events and Attractions

Texas Approves $29.3M Payment For F1 U.S. Grand Prix Organizers

U.S. Grand Prix organizers had asked for $30.6M based on tax revenues
Texas Comptroller Susan Combs has approved payment of $29.3M from the state's Major Events Trust Fund to organizers of the Nov. 16-18 F1 U.S. Grand Prix, which is "slightly less than what a group affiliated with Circuit of the Americas had requested in July,” according to Dave Doolittle of the AUSTIN AMERICAN-STATESMAN. The payment covers “traffic management, temporary grandstands, other seating and a sanctioning fee to Formula One Management to host the race.” The amount authorized by Combs “isn’t based on actual tax revenue generated by the event," but is an “estimation of tax revenue made by the comptroller’s staff and the Circuit Events Local Organizing Committee.” Under trust fund rules, the amount granted to the event organizers “should be equal to the amount of additional tax revenues generated by the major event.” The comptroller’s staff is “required to complete a post-event economic analysis within 18 months of the event.” The tax revenues that will be analyzed “include sales, alcohol, hotel rooms and car rentals.” The application to the trust fund “sought a total" of $30.6M. The application contained a July economic impact study, letters from City of Austin officials and F1 CEO Bernie Ecclestone, and "other documents” (AUSTIN AMERICAN-STATESMAN, 12/12).
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