This afternoon, the Spokane County Board of Commissioners officially terminated the Operator’s Agreement with Austin Motorsports Management, LLC for Spokane County Raceway Park. Earlier today, the Board was notified by the attorney representing Austin Motorsports that the LLC has been unable to secure the financing necessary to continue operations at the raceway. Austin Motorsports assured the board that they will cooperate with the county in returning the raceway to the county and in termination of the Operator’s Agreement.
Austin Motorsports Management, LLC received a Letter of Default on September 2, 2009, that cited the failure to pay local vendors for capital improvements and other work that was done at the raceway, failure to secure a performance bond, and failure to conduct the required bidding process. According to the Operator’s Agreement, the default letter officially began a 60-day “cure period” which provided time for the vendors to be paid in full. Today, Austin Motorsports officially waived the remaining cure period, which cleared the way for the County Commissioners to take immediate action and terminate the agreement.
According to Board Chair Todd Mielke, today’s action was an unfortunate conclusion to a successful first season. “Spokane County Raceway Park had an outstanding season that brought tourism dollars into our area, but we had an operator who wasn’t paying local businesspeople and we weren’t going to let that continue. The Parks and Recreation Department is prepared to take possession of the property, secure the assets and winterize the facility,” Mielke said.
Following the unanimous vote, Commissioner Mark Richard commented that the Board of County Commissioners was disappointed in having to take today’s action. “We have and will continue to move swiftly to secure a full schedule of racing events for 2010, and pursue a new operator’s agreement that protects public interests and continues to spur the region’s economy,” Richard said.
Commissioner Bonnie Mager recalled the high hopes when the BOCC entered into the contract, “It’s really unfortunate. We were looking forward to having a solid, long-term relationship with Austin Motorsports. Hopefully, we will be able to find a new operator long before the next racing season begins and we can build on this year’s success.”
For more information, please contact Parks, Recreation and Golf Director Doug Chase at (509) 477-2720.
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