Auto Club Speedway Delivering for Inland Region
S.B. County-commissioned study finds
07:46 PM PDT on Thursday, August 14, 2008
By LOU HIRSH
The Press-Enterprise
Auto Club Speedway in Fontana has pumped $1.8 billion into the region's economy since its 1997 debut, amounting to about $210 million in annual benefits, including jobs and tax collections, according to findings of a study released Thursday by San Bernardino County officials.
Drawing on the study commissioned by the county last year and conducted by a Texas consulting firm, officials said the track formerly known as California Speedway has created 5,000 jobs in fields ranging from construction to tourism and contributed more than $39 million in taxes to local agencies for public services.
"It validates what the county has been saying for years," Paul Biane, chairman of the county Board of Supervisors, said in a media conference call to announce the findings.
Biane said the study was commissioned to update original projections made by Redlands-based economist John Husing and to guide local officials on future master planning on land near the speedway.
2006 / The Press-Enterprise
The events at the speedway have attracted almost 7.2 million people over the years, a San Bernardino County-commissioned study finds.
Biane said public concerns have arisen as to what might be developed in the area, and the study was meant to "educate those who may be wondering" about the track's local impact. No joint projects with track owners are in the works, but the county and speedway have been coordinating master planning in the area. Biane said the study results validate future partnerships with the speedway.
Auto Club Speedway President Gillian Zucker said the racetrack's parent company, Florida-based International Speedway Corp., does not have specific on-premises projects in the works. But the company is in long-range discussions with developers of nearby properties that might bring elements such as hotels and retail to the area.
The company also plans improvements to the speedway.
"We'll have an opportunity in the not too distant future to embark on a major capital improvement project," Zucker said.
Officials said the study was conducted by Conventions, Sports & Leisure International at a cost of $65,000. Its estimate of $210 million in economic benefits for 2007 tracks closely with a 2003 projection by Husing, who predicted an annual impact ranging from $136 million to nearly $220 million.
According to the study, nearly 9,000 people go to work in the Speedway Redevelopment Project Area daily, and track activity has attracted more than $400 million in private investment to the area.
In addition to the thrills it gives racing fans, Auto Club Speedway brings $210 million a year into the local economy, the study finds.
Redevelopment Benefits
The redevelopment area encompasses more than 3,400 acres, including land that formerly housed Kaiser Steel operations. Biane said companies recently building or planning operations in the vicinity have included Sports Authority, Mohawk Carpet, Kellogg and the makers of Scott paper towels.
Since the track opened 11 years ago, events there have attracted almost 7.2 million people, the study estimates. Almost 75 percent of the attendees come from outside the Inland region, and more than one-third live outside of Southern California.
Zucker said International Speedway Corp. is still considering a request by local government officials to move one of its local Sprint Cup races from Labor Day weekend to a time later in the year when the weather is cooler so it potentially would appeal to more fans.
Economist Husing, who was not part of the conference call, said afterward that the study's annual impact numbers should hold true going forward. The Inland area is in a recession, but it will come out of it, he said.
"Racing is something that people go to with their discretionary income, and right now, they have less discretionary income," Husing added.
Reach Lou Hirsh at 909-806-3074, 951-368-9559 or lhirsh@PE.com
Speedway impact
According to findings of a newly released study:
- $1.8 billion: Cumulative economic benefit since 1997
- $210 million: Annual benefit
- 5,000: Jobs created
- $39 million: Taxes paid to local agencies
- $400 million: Private investment attracted to the development area
- 9,000: People working in the project area
Source: Conventions, Sports & Leisure International
