This Week's Million Dollar Question - When Will Red Bull F1 Come to Austin?

Sunset Over Congress Avenue, Austin, Texas - by Visualist Images, John Rogers

This is the view from the Ann W. Richards Congress Avenue Bridge in downtown Austin, Texas. It hovers over Lady Bird Lake, is home to the world's largest urban bat population, and in the background, you can see the Texas State Capitol.

"Congress Bridge," for short, is where we hope Red Bull Racing will film DC's inaugural F1 drive this Saturday.

I've been keeping an eye on the City of Austin's permit filings since DC revealed his intentions to take the Red Bull Racing Showcar for a spin in Austin and LA during his summer holiday this month. We were beginning to wonder how Red Bull would shut down the main artery of downtown Austin, Congress Avenue, for such a worldly event, as it has never happened in the US before. I was convinced a vague, yet rejected, permit filed for Fox Sports Promo was going to be edited the day before the event and thereby approved, until a new revelation last night - a permit not-so-stealthly titled "F1 Comes to Austin" was filed on Friday.

David Coulthard at RBR Showcar event in Singapore - April 2011 - Image from Red Bull Racing

We believe, via numerous sources, that the Red Bull Racing Showcar expedition will be in Austin this Saturday, August 20 (and in LA on the 19th). And, that's about it. No word on time. No word on location. Their permit language is confusing in that it says: "Film crew will be shooting a Formula One Car Driving driving down Congress Avenue towards the Capitol Building and exiting towards 15th street." This could put us north of the Capitol and headed south, or on our preferred path from the Congress Bridge and heading north towards the Capitol.

Wherever we end up, this is going to be a great event for F1 in the US. We were looking forward to a weekend of F1 fun, with the SENNA movie premiere slated for the 19th. However, the release date for Austin has been pushed back a week, August 26, so you'll just have to make two trips to our fine city.

Plus, this is not Red Bull's first rodeo. They're used to creating wildly successful public events at the drop of a hat. Austin's 2007 Red Bull Flugtag competition drew the largest US attendance of over 85,000 people to the Auditorium Shores of Lady Bird Lake. Were you there?

Heads up: we also enabled hotel booking on our site last week. Why should you book with us? Because we support local businesses and invest back in the Austin community whenever possible. $2 of each hotel room rental per night will go to Big Brothers Big Sisters; having been a "Big Sister" in Central Texas since 2004, this charity is important to AGP. We can also help large groups with easy booking - contact us for assistance.

So, our question remains - Will DC and Red Bull COME AND RACE ITTM?

*We make no guarantees or assurances to the vailidity of planned events and are not responsible for cancellation or changes to revised event dates. Details provided for informational purposes only and no warranties are made or implied.

David Coulthard To Drive F1 Car in Austin

Before Saturday's qualifying session, the BBC's F1 crew was catching viewers up on the progress at the Circuit Of The Americas and did a plug for an event DC is doing in America.

Here's the transcript:

Jake Humphrey - "But you're off to Texas soon to drive an F1 car, right?"

David Coulthard - "Indeed, I'm heading out there during the summer break whilst everyone's taking two and a half weeks away from Formula 1. I'll be doing a little demonstration with a Formula 1 car in L.A. and then heading down to Texas to do downtown Austin, to try and get a flavor of Formula 1 and show the people..."

JH - "Nice, so make a bit of noise?"

DC - "and make some noise"

JH - "...and make some smoke, brilliant, we'll show you that on the BBC as well..."

Well David, we are ecstatic and can't wait for you to COME AND RACE IT™!

We're expecting the official news for this event to be released very shortly and hope that you all can join us on the streets of downtown Austin at this exciting event. Given Red Bull's experience in the Austin community at holding large events (i.e. Red Bull Flutag) and several others, we also anticipate this will be a RB event, which should make it an instant success.

Here's a little taste of the Red Bull Showcar with DC driving:

Slow Down There 'Pardner, Keep Your Shirts On

Is this really what we want to see in front of us at an F1 race in June? Lets hope this guy gets a COME AND RACE IT™ shirt!Many in the motorsports industry were quite surprised when the FIA World Motor Sport Council established the preliminary 2012 calendar a few months ago and set the Inaugural Austin F1 race date for June 17th, 2012. If you were to ask any Austinite about holding a major event outdoors in the summer, they would have just about died laughing. Clearly, the WMSC and other primarily European F1 decision makers didn't quite understand the gravity of the heat in Texas, and what it would mean to the many international travelers whom would be leaving 21º C (70º F) average highs in Europe, would be very surprised with Austin's average of 33º C (91º F) for the month of June.

We expressed our same concern when we first heard about the June race date, but didn't bring it up, expecting it to be changed later in November, when the official 2012 calendar is set.  Well as Autosport is reporting today, Bernie Eccelstone has sent out a message to the teams about modifying the calendar for the 2012 season and is expected to push for Austin to be moved to November, just before the Brazilian GP.

This is very welcome news from our point of view and also makes a lot more sense logistically. Granted, the Canadian GP in Montreal is in early June and holding the USGP just back-to-back is logical. However, this would force the teams to either drive from Montreal or pack up and fly to Austin. 

F1 car being loaded on DHL plane for transportTransporting the teams is a costly and logistically complex operation, employing many people dedicated just to move the teams around the world. Thankfully, the F1 fleet of DHL planes on their way to Brazil in November, stop over at Dallas Fort Worth International Airport (DFW) for a layover.  It's no coincidence that COTA picked a parcel of land so close to the airport here in Austin, whereby having the F1 fleet fly through Austin would be cost effective and efficient.  Things just keep falling into place, huh?

So what does this potential calendar change to late fall really mean?

1) It will be significantly cooler and more enjoyable for you to walk around the track, explore the various events at Circuit of The Americas and in downtown Austin, and allow you to focus on having fun in our fine city; not spend it hopping from shade spots to shade spots, searching for water, misters and A/C.

2) This will allow COTA to meet more of the deadlines with ease and ensure that the facility is at its peak operational capability when the teams arrive early the week before the F1 race.

3) As our friend John Maher at the Austin American-Statesman reported in April, the University of Texas at Austin (UT) stated it would consider moving a 2012 Longhorns football (American) game if it conflicts with the F1 race in Austin. A reminder that each UT Longhorns football game draws a crowd average of 100,000. Also, the F1 calendar is set prior to NCAA football schedules, which would prevent logistical change of schedule nightmares. More great news, unless of course, you were hoping to double book your trip here to see F1 and some great Texas football.

4) Ozone levels are lower in the fall than in the summer and will have less environmental impact. As discussed in the City of Austin's agreement with CELOC (the organizing entity for Circuit of the Americas to receive state funds), the Central Texas ozone season is April 1 - October 31. Therefore, a November race would complement environmental initiatives established by Council Members Chris Riley and Mike Martinez.

And to keep the ball rolling, Austin businesses in cooperation with the Austin Chamber of Commerce are working to get Austin Bergstrom International Airport (ABIA) to accomodatedirect international flights instead of going through Dallas and Houston.  This of course means less layovers for travelers and a more internationally friendly atmosphere, so lets hope this happens as well!

Update

on 2011-07-28 21:37 by Kevin Olsen

OFFICIAL UPDATE

After calling attention to the Autosport article, we spoke with COTA and they have expressed the following:

"Until such time as we receive an official announcement regarding changes to the schedule, we are proceeding as planned toward the June 17, 2012 date."

As noted in the original article, we support and predict numerous advantages of an Austin F1 race date that falls later in the 2012 season. We will, of course, continue to support COTA's moves to stay on track for a June 2012 inaugural race!

Update

on 2011-08-02 06:47 by Kevin Olsen

UPDATE #2

Autosport is reporting that the teams have not agreed to the revised calendar for the 2012 season citing "logistical nightmares" for the end of the season.  We sure hope that this can be solved and still keep the USGP in the fall timeframe, but ultimately the teams have some very real concerns about moving their staff and equipment from Austin to Brazil in just one week.

ALL IN FAVOR, SAY "AYE"

Austin City Council chambers packed with supporters at last Thursday's meeting

The "ayes" have it and the motion is carried.
Austin Approves F1 Project!

The Austin City Council just voted seconds ago to approve the resolutions related to the Agreement between the City of Austin, The Texas Comptroller and the COTA Local Organizing Committee.

Mayor Leffingwell was joined by Council Members Martinez, Riley, Cole and Spelman in approving the measures. Council Members Tovo and Morrison voted in opposition.

As a recap, the measures:

1. Authorized the City Manager to negotiate and execute an Interlocal Agreement with the Texas Comptroller of Public Accounts to: 1) Establish a METF for the F1 US Grand Prix and 2) Set forth the rights and obligations of the parties as required under the METF statute.
2. Authorized the COTA Local Organizing Committee ("CELOC") to act on the city's behalf 1) Establish the parties' authority, rights, and responsibilities with respect to an application to the Texas Comptroller of Public Accounts for creation of a METF in support of the F1 US Grand Prix and 2) establish the parties' authority, rights, and responsibilities with respect to payments to and from the Fund.
3. (Hotel fee waiver ordinance)
4. Discussion and possible action on a term sheet describing environmental standards and expectations regarding the Circuit of the Americas and related parties.

We also enjoyed reading Council Member Bill Spelman's email that he sent in response to all those that emailed him about the F1 vote. He highlights three concerns:

1. There must be no financial risk for the City of Austin or its taxpayers.
2. The City of Austin must be able to terminate all contracts due to non-performance.
3. Circuit of the Americas must meet the sustainability expectations.

You can take a closer look at Mr. Spelman's email by clicking here.

Regarding the sustainibility expectations, The Austin American-Statesman exclusively shared a press release from Council Member Chris Riley's office late yesterday afternoon. Mr. Riley, Council Member Mike Martinez and Austin Mayor Lee Leffingwell all sponsor and support an unprecedented initiative to make Circuit of the Americas a landmark "Green" Formula One facility. This tentative agreement addresses numerous environmental and sustainibility issues. Here are a few points that COTA has tentatively agreed to implement at the one-of-a-kind Circuit of the Americas:

• Provide satellite parking and dedicated lanes for mass transit options
• Build structures to Austin Energy Green Building standards
• Invest in on-site renewable energy
• Embrace aggressive recycling and composting practices
• Invest in local carbon offsets, such as tree plantings and land conservation
• Buy into Austin Energy’s Green Choice program
• Dedicate land for a community garden
• Partner with other organizations, such as Austin Technology Incubator, to support on-site green technology and research and development projects
• Coordinate with local educational institutions such as UT, Texas State , Huston-Tillotson, and Texas A&M to do green racing and transportation research
• Host alternative energy and energy efficient car races, in addition to cycling and foot races

Thanks EVERYONE for your help, tweets, comments, posts; YOU truly helped MAKE IT HAPPEN!

Austin, MAKE IT HAPPEN! from The Austin Grand Prix on Vimeo.

More THANK YOUs to everyone who has ever watched and participated in the past five (yes 5) Austin City Council meetings regarding F1 since November of last year.

Your first beer at the inaugural F1 race at Circuit of the Americas
in 2012 is ON US!

Cheers :)

On To Vote Again...

Last night Circuit of the Americas ("COTA") announced that Texas music legends Willie Nelson and Lyle Lovett look forward to performing at The Grand Plaza, the expansive outdoor live music space planned for the world class facility currently under construction. Willie said, "I'm looking forward to playing at the F1 track. Sounds like a great new venue" and Lovett added, "Circuit of The Americas sounds like it will be a world class facility in one of the best places in the world for music.” This reminds me of one of Willie's most famous songs:

Willie Nelson and Sheryl Crow "On the Road Again" live 2007 Crossroads (via MoreSherylCrow)

I chose this specific video so you can get an idea of what a completely packed outdoor live music venue looks like. This show, The 2007 Crossroads Guitar Festival, was on July 28, 2007 at Toyota Park in Bridgeview, Illinois. "Tickets were estimated as sold out for the 28,000 capacity park in 22 minutes" (via Wikipedia). This is just a taste of what we can expect from Lyle, Willie and many other talented musicians at The Grand Plaza at Circuit of the Americas. More details in the Press Release.

Bob Varsha (SPEED TV), Steve Sexton (COTA) and Tavo Hellmund (COTA) discuss the live music venue planned for the facility at the April 14, 2011 Press Conference

Enjoy the tune as you continue to prep for today's Austin City Council meeting, hopefully the last, to proceed with the City of Austin's official endorsement as the sponsoring city for COTA to receive funds from the Texas Major Events Trust Fund. Just like Willie sings in "On the Road Again," we are now "On To Vote Again..."

Here is today's City Council Agenda. Note that there does not appear to be time for Public Comment during today's meeting, so it may move faster than last week's seven hour discusson on F1 topics (!).

Watch it LIVE here: http://www.ci.austin.tx.us/channel6/

Alternatively, listen to the live radio feed here: http://tunein.com/tuner/?StationId=31602&

Just like last week, we will continue to update you throughout the day. The most up-to-date news will be shared in 140 characters via our twitter stream:

http://www.twitter.com/AustinGrandPrix

However, if you'd like to share any last minute comments, feel free to do so on our Facebook page:

http://www.facebook.com/AustinGrandPrix

We are very grateful for the support and feedback we receive from YOU - our fans, friends and followers from around the world. We received some really nice and inspiring messages from everyone after last week's meeting. Thank you for your help to MAKE IT HAPPEN!

METF, ETF, SpETF, MSRTF - WTF?

Tomorrow, Wednesday, June 29^th, the Austin City Council will hopefully decide if the city should sponsor the Circuit of the Americas (COTA) request for a 10-year $25M sales tax rebate from the Texas Major Events Trust Fund (METF).  Normally a sponsoring entity like a city or county would commit up front their anticipated share of the sales tax gain, estimated at approximately $4M for Austin, but in this case the F1 event organizers have even committed to put up the $4M for the next 10 years, so there is basically no risk for the city of Austin taxpayers (as frequently repeated by COTA's attorney of record, Richard Suttle).

Events by Category (Click to Enlarge)

I’m not going to debate whether or not this state fund should exist, but I do think it’s important that all Texas taxpayers, and others, be aware of what it is and why it exists.  The Texas legislature created this “series” of funds (METF, ETF, SpETF, & MSRTF) to be funded by incremental sales and use tax proceeds derived from hosting major events within Texas, and yes, many other states/municipalities have similar funds to lure major events to their area, this is nothing new.  It’s actually very similar to the tax abatements offered to companies that decide to locate or re-locate their businesses to a particular city based on the overall positive economic and employment impact on the area. Think Southwestern Bell (SWB) relocating to San Antonio from St. Louis, and then SWB buying AT&T moving to Dallas, etc.  In many cases, cities actually “invest” in the development of the hosting facility itself, for example Arlington, TX contributing $325M towards the construction of the new $1.2B Cowboys Stadium (Dallas Morning News July 11, 2010).

Events by Location (Click to Enlarge)

Despite the rumors and false statements circulating that this money takes away funds from education or other state programs, which by law is impossible, these funds are designed to be self-supporting due to the anticipated incremental revenue the state receives from additional sales taxes collected during these events.  However, I do concede that if these funds did not exist, and if the events came to Texas without the “subsidy,” then that additional revenue would be available for other public funding.  But if that was the case, how many of these large events would have decided to go somewhere else where some type public funding is available?  This the primary reason these funds exist, and if the opponents are successful in eliminating these rebates for F1, then in fairness, all METF/ETF funding should be revoked, which only the state legislature can enact at this point in time.  And before you cry about the $25M for 10 years, please understand that the only “apples to apples” comparison with other METF events is the Super Bowl, which received $31M in funding last year.  This is because it shares similar attributes with F1 as the only class of event that draws tens of thousands of visitors from outside the state of Texas, and many internationally.  Remember, the key word is “incremental” revenue to the city and state.

Funding by Category (Click To Enlarge)Therefore, the real question is why would anyone oppose this funding?  I suspect if the request involved hosting the BCS Championship Bowl series at Texas Stadium for the next 10 years, not many Austinites would even bat an eye; in fact, most would bend over backwards in support.  Or if it was NASCAR or Indy Cars or the NCAA Final Four, most of the opposition wouldn’t exist.  Formula 1 and MotoGP, for that matter, are lesser known events to many folks in the U.S., and the “trial” street F1 races in Dallas, Detroit, and Los Angeles were simply one-time races on temporary street circuits.  Yes, F1 was successful at Watkins Glen, NY for twenty consecutive years and at Indianapolis Motor Speedway from 2000-2007, despite negotiations and conflict over the effective promotion of the sport, in 2008, both F1 and Indy mutually agreed to terminate their contract; that’s just business, as Trump would say.

Funding by Location (Click to Enlarge)

In an effort to give you an appreciation for the proliferation of how these funds are used, and for what types of events, I have provided this Comptroller document that lists the actual or anticipated approved expenditures since the fund creation in FY04, through FY11 (to date).  I created summary pie charts for those who are too busy to look at the data (although I highly recommend it, after all, the devil is in the details).  Please take note of a few interesting observations derived from this list.  How many of these events are organized for the benefit of private enterprise?  How many are medical group related?  How many are horse/livestock shows? NCAA or other special interest events?  Almost all of them.  Now how many were held in Austin?  Houston, Dallas/Fort Worth, San Antonio?  Maybe Austin should take a few lessons from their neighbors to the southwest; they obviously know how to "work the system.”  Bottom line if you want to debate the effectiveness or use of these funds, you should call your State Representative or Senator, not oppose the efforts to bring these events to the Austin area which will only strengthen the local economy and provide needed jobs for many.   

Formula One is the pinnacle of motorsports worldwide and it draws the attention of 600 million television viewers each year!  This is where the money is!  Only the Olympics and World Cup Soccer draw more fans, and they only occur every 4 years.  If you would have attended the Canadian Grand Prix in Montreal, as we did a few weeks back, I guarantee you would have a much greater appreciation for the economic impact of these events.  As an alternative, read about why local Montreal businesses and residents alike petitioned the city of Montreal to re-instate the race after a two-year hiatus attributed to similar questions regarding the high cost of F1 sanction fees.  It is just business; but that’s what sustains life as we know it.

If you’re still not convinced, read Will Buxton’s letter from last week to the Austin City Council again.  Or just imagine what the INTERNATIONAL television exposure could mean to Austin businesses, especially to companies like Dell, AMD, and many others that desire to expand their business globally.