Formula One got the answer it wanted from Austin.
 | The City Council, before a packed crowd, voted 5-2 Wednesday to endorse the U.S. Grand Prix scheduled for a track under construction near Elroy, southeast of downtown Austin. The endorsement appears to clear the way for local sponsors to receive $25 million in annual state subsidies over 10 years — and, although some hurdles remain, to run the first race on June 17, 2012. |
"As a native Austinite, I know why so many people have a hard time with an auto race," said Council Member Chris Riley, who noted that his office received thousands of emails on the F1 proposal, with local opinion split evenly. But with rising tax burdens in Austin and a need to raise money for public services, Riley said, "when thousands of people from around the world say they want to spend money in your community, you listen."
The vote came after more than four hours of council deliberation and often-passionate public testimony for and against the event. Some in the crowd wore suits, others jeans; some supporters waved miniature black-and-white checkered flags, while a few of the critics had anti-F1 stickers; about 50 construction workers in bright yellow-and-orange safety vests lined the back of the council chambers.
The meeting had been preceded by three weeks of frantic negotiations between the city and the local F1 promoters. The council delayed a vote last week because council members said they needed more time to study the proposed contracts.
Local sponsors needed the city's endorsement to receive $25 million annually in state subsidies, a financial arrangement local F1 backers say is necessary to lure the international event.
The city negotiated a financial contract and an environmental agreement, which officials said would make the Austin race the greenest F1 event in the world. The former is intended to guarantee that Austin would not be required to provide $4 million in taxes a year for the event, as race sponsors had originally proposed as part of a complicated set of agreements among the city, state and local F1 sponsors.
"Austin is not liable for any public money," Council Member Bill Spelman said.
Critics remained skeptical that Austin wouldn't be on the hook for that money if the event failed to attract the fans and revenue that organizers expect. Some also objected to Austin giving the key endorsement to a deal that would provide state tax subsidies during a bleak budget time.
Even with the council's approval, some matters remain unsettled. Two Austin-area teachers and an accountant have filed a lawsuit claiming F1 organizers improperly applied for the state subsidy and should not receive it.
A new date would also spare spectators from enduring the often-blazing June heat.
But moving the race date would not be easy and, like most things in Formula One, would involve a lot of politics. The calendar is set by the World Motor Sport Council, an arm of Fédération Internationale de l'Automobile, the governing body for motor sports, and Bernie Ecclestone, the boss of Formula One, is currently feuding with federation President Jean Todt on several matters.
"Mr. Ecclestone has most of the say for when these races are scheduled," said Richard Suttle, the local attorney representing the F1 sponsors.
"If you ask my personal preference," added Steve Sexton, president of Circuit of the Americas, the race planned for Austin, "I would prefer it be in the fall."
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