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Fears have eased that Austin's city council could scupper the 2012 US Grand Prix.
It emerged last week that if council members refuse to sign up as "endorsing municipality," the race organizers' $25 million in annual state funding for the Circuit of the Americas project is in doubt.
The council agreement would involve Austin contributing $4m per year to Texas' Major Events Trust Fund, even though the race organizers are pledging to pick up the bill.
Earlier reports had said the organizers were hoping the $4m would be funded by taxpayers in subsequent years, but it now emerges that they have agreed to pay up for the full decade of the Formula One contract.
"This confirms what I've been saying all along — that the city would be contributing no up-front money, and that the city would not be at risk," confirmed Austin mayor Lee Leffingwell.
Asked if the agreement will be formalized by the time the council meets next week, he is quoted by the Austin Chronicle: "I would hope so."
The inaugural race at the Circuit of the Americas (currently being constructed in South-East Travis County) is scheduled for June 17, 2012.
Full Throttle Productions (the local group behind the project) told council last week that it planned to pay the $4 million for the first year of the 10 year hosting contract.
Spelman said that today's latest decision to pay the full 10-year contribution appears to have been triggered by his declaration that he intended to move to postpone council's decision (tentatively scheduled for June 23).
"I wanted to allow a full nine days for the public to review the economic study," Spelman told NewsDesk, "as we do in all chapter 380 [incentive] agreements.This is not a chapter 380 agreement – it's with the state's Major Events Trust Fund – but it's close enough that I think we needed to treat it the same way."
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