Maybe good news for gateway

[mike w]

A Florida investment firm is in talks to buy the shuttered Gateway International Raceway in Madison.

Susan Pollack, spokeswoman Palm Beach International Raceway in Jupiter, Fla., confirmed Wednesday that Moroso Investment Partners is “in discussions with current landowners,” to purchase the Madison racetrack.

The track opened in 1997 and closed in November.

Pollack said there were no further details about the negotiations.

Moroso Investment Partners also owns Memphis International Raceway. That track was recently purchased from Dover Motorsports Inc., which had been the owner of Gateway International Raceway.

 

[Tim M]

I've heard Chris Pook may be interested too with some other investors. No matter who buys it, they need to manage it better. I don't think any ONE event can carry the place (NHRA or NASCAR), they need to work together better to make coming to St. Louis and Gateway a Wednesday - Sunday event, not just a one day thing. Do better advertising out of market too, well, for that matter, just do advertising I hear MAR is still being worked on too. Property is bought, staking is done, but that's about it.

 

[mike w]

Nascar track needs to go. It has been the down fall of gateway. Chris Pook if my memory serves me right is the 1 who overbuilt it to start with and sold to dover.

 

[Tim M]

I know it's hard to believe Mike, but NASCAR can carry a track, obviously, you're right, it didn't at Gateway but that was because it was mis-managed. I know the track and NHRA releases numbers that say "300,000 people attended this weekend's event" Right. How many were the same people? If the same 75,000 people attended each day, you would have a weekend gate total of 225,000 people that came through the turnstiles. With a NASCAR event, you get different people there for the practice, for the qualifying, and for the race. The oval wasn't the complete reason Gateway is shut down. Look back at the development of this facility. When it opened with the new oval and dragstrip, the promise from NASCAR was they would get an event. Gateway, thinking that the city of Madison would be smarter than they are, thought they could meet NASCAR's request for additional onsite parking. Which, by the time NASCAR made up their schedule, Madison had sold that "additional" parking area out from underneath Gateway and made it a golf course. Obviously, hindsight is 20/20 and right now that looks like a good decision by the city, but at the time, it cost Gateway a major event. The oval isn't perfect, there is something about it that just isn't right, can't put my finger on it, but as it is, I'm not seeing why NASCAR doesn't like it. It's in the Midwest, very accessible by any NASCAR fan in the states (like KC, Joliet, and Indy), it's close to a large city with things to do, it's a challenging track but has no parking for 75,000 cars. You can blame it on the oval, I guess technically, yes, but it all started when Madison, IL decided to put the "protected" tag on the swampland south and east of the track preventing Gateway from expanding parking there as well as mismanaged events (which to me, was obvious with RNG).

So, why can't they re-open the facility for drag racing only? Would ONE major event per year support it?

 

[mike w]

So, why can't they re-open the facility for drag racing only? Would ONE major event per year support it. Tim you need to take off your blinders, they had many small races though out the year. Mr Pook was the 1st owner and was in the develepment of this track and thank god he doe'snt have the funds to buy it. Dover purchased it from him and now Dover has walked away from it and it reverts back to the land owners and will be auctioned off. The toilet bowl tracks problem is simple no 2 turns the same drivers hated it. The events you refer to as drawing people was simple most of the tickets where for free or at a huge discount and its kinda simple if you fill stands with nonpaying customers you don't make much money. I had to attend a chrysler ( dodge ) sponsored race ( due to not enough factory people to help so they asked area service managers ) and even with all the free tickets the stand might have been 40% full. The drag strip has always held its own and during the summer its used on weekends and 1 or 2 nights during the week that many did not know about. Management problems started about 4 years ago 1st with the oval track then filtered down to the drag strip. The last 2 years the buget for the drag strip was so thin They where diluting the traction compound. The memphis track went to auction and the same people who bought it ( this is good ) payed much less then their final offer to purchase outrite. Now the land owners have gateway and can't pay the taxes. The state and the county want their money, so here goes another auction and this year and next from very good source that was on the management team there. The oval track is as good as gone, drag strip will be IHRA drag strip stands will be scraped and stands from oval moved over and modified, something strange also just took place 2 weeks ago all the electric meters change so that maybe due to its a done deal and still being hushed. Thats all that was told to me tuesday.

 

[mike w]

Would ONE major event per year support it. Here is how that works. When NHRA has their big event they basicaly come in and take over the track and they may use some of your support people. They get their cut FIRST, so that mat help you understand why you did not see or hear much advertising last year on the NHRA event, the track pays most of the hit on that. Manufactures midway you have say a trailer and motor home you are charge by the foot how much space you take, I know of 1 company that unhooks motor home from trailer moves it over to the left 1 foot and backs up so they can shorten the display and they paid Nhra over 95,000.00 for the complete year last year just for the spot ( no hook up ) Sears Craftsman pulled out 4 years ago due to tired of being fleeced. Last year tax people from madison came around telling all you had to have a permit to sell anything, lucky for my bud gary ( of Mark Wiiliams Enterprises ) he was out delivering 2 ford 9 1/2 center sections to Larry Morgan so I told them the on site manager was sick this weekend and I was filling in for him and if they could come back sunday around 6 pm I would have a answer for them ha ha they left. 140.00 bull crap permit for 1 week end the guys at jerry bickel's display told them they just display and don't sell parts there. There is no way a track could survive on 1 large even. When it opens back up you need to find their site after 30 days and get a schedule and you will see how much the drag strip is used.

 

[mike w]

Today's news

..Gateway International Raceway, which ceased operations last November, could be back in business by July if negotiations continue moving forward to sell the track to a Florida investment firm.

Three weeks ago, Dover Motorsports Inc. terminated its leases with three of the four parties who own a majority of the racetrack, setting the stage for the negotiations. The Delaware company bought Gateway in 1998 from its original owner, Chris Pook.

Dover also owned 18.5 acres of the Gateway property but relinquished it as part of the deal.

"The owners are putting together a strategic plan with the intent of returning Gateway International Raceway to full operating status within the next 120 days," said Clayton attorney Bob West, who represents one of the parties who owns the lease at GIR. "That is our goal."

Moroso Investment Partners, a group that owns Palm Beach (Fla.) International Raceway, is trying to buy Gateway. It bought Memphis Motorsports Park at auction from Dover in December for $2.062 million and finalized the deal on Jan. 31.

Susan Pollack, spokeswoman for PBIR, said on Thursday that Moroso is "in discussions" about buying Gateway. She would not comment further.

Dover ended its involvement with Gateway on Feb. 18, according to Securities and Exchange Commission filings. Dover has to file any transactions with the SEC because it is a publicly traded company.

GIR is comprised of approximately 290 acres, which includes the racetrack and various non-adjacent parcels used from time to time for parking. The track property itself sits on about 150 acres.

According to the filings, Dover is still trying to 'secure the termination of our one remaining lease, but the obligations under this lease are not material to us."

In a telephone interview, Dover chief executive officer Denis McGlynn said, "I think the table is set now for the property to be revived assuming the property tax issue can be resolved.

"Before, while we were still obligated under leases, for somebody to come in and buy the entity and not be able to buy the property, it creates some hurdles that would have been very difficult to overcome. All of which would have been made worse by the obligation to pay property tax on something you don't own. This cleans all of that up."

The property tax on Gateway, which sits in St. Clair County, was a reported $2.5 million. As of three weeks ago, the landowners had filed a property tax appeal with the county asking for the taxes to be reduced. It is unclear whether the owners were given any breaks.

McGlynn also noted that Dover gave up its 18.5 acres of property to the landowners 'so that would be consideration for them to let us out of the leases. That cleans up the property to be able to be either transacted in a sale in an orderly fashion or for a new operator to come in there and sign new leases and work out a new property tax arrangement.

"I think we left it in as good as shape as we can for the next group to come in there and do the best they can with it. We're not happy in the sense that we weren't able to get sufficient traction out there as an operator.

"But we're happy, under the circumstances, that we were able to leave that property in the best possible shape we can for it to survive or re-emerge. We wish them the best of luck."

 

[Tim M]

Thanks for the info Mike. So, do you think the oval will survive with new ownership? How could the current setup work? What if the oval were taken out and a proper road course were to be built? Think that would work? I still have a hard time believing the weekly drag's that they have where each competitor pays $20 is enough income between the major events to keep the track in operation, maybe I don't know all the other events that go on there. Great info above, since you work so close and in a race shop, you probably have more info than most

 

[mike w]

I hear MAR is still being worked on too. Property is bought, staking is done, but that's about it.
Thats up in smoke, now they are looking at a site right off 70. Kinda doubt if anything will come of this bunch ever putting anything but a bunch of b.s. togeather

 

[mike w]

Much Better News

I got a call Late last night saying its a done deal and today was told they are asking some of the old staff to reapply for their positions due to having no records on them and also some Not being called, So I would look for it to be opened june - july area and dragstrip will be IHRA. Will know more hopefully next week.

After doing some home work I am starting to wonder about MOROSO INVESTMENT PARTNERS take a look at this

http://www.600rr.net/vb/archive/index.php/t-125361.html

How in the world can the buy gateway and think they can manage it correctly when they can't pay their bills. Maybe taking leasons from the great OBUMBA

 

[mike w]

Gateway race track

Some thing rotten in madison Moroso Investment Partners are said to have bought race track with just 1 more hurdle. 1 plat of ground with tax problem but look at their record for paying contractors

Raceway owners didn't pay, liens stateBy JEFF OSTROWSKI
Palm Beach Post Staff Writer
Monday, January 12, 2009
The new owners of Moroso Motorsports Park have spent millions to spiff up the run-down raceway, and now they're trading paint with the contractors that have done the work.

Nine contractors have filed liens for $3.5 million in unpaid bills, according to public records.

Running on empty
Who's owed how much by Moroso Investment Partners:

H&J Contracting: $1.27 million
Hubbard Construction: $880,782
Hubbard Construction: $582,142
Homestead Paving: $212,728
Lawrence Fence: $206,722
Centerline Utilities: $117,950
Peninsular Electric Distributors: $107,080
Tilt Up Plus: $70,715
Siboney Contracting: $40,481
C&C Concrete Pumping: $33,420

Source: Liens filed with Palm Beach County Clerk and Comptroller






One of those firms, H&J Contracting of Wellington, filed suit last week in Palm Beach County Circuit Court for $1.27million that it claims it's owed by Moroso Investment Partners.

"They've just failed to pay the last couple draws and more or less taken the stand that 'if you want to get paid, we want a discount,' " said H&J Vice President Dino Marini.

H&J began work in May on a $4.5million contract that called for the firm to complete work such as demolition and installation of underground utilities and a rock base for a new track at the renamed Palm Beach International Raceway.

The new owners of the property west of Jupiter ultimately hope to build a high-end club for car enthusiasts who'll pay a $100,000 membership fee for access to the track.

Gil Dezer, a Sunny Isles Beach developer who's one of the new owners of the raceway, is refusing to pay - not because his ownership group is in any financial difficulty but because contractors are "unscrupulously" overcharging.

"The prices people agreed to are not the prices that are today," Dezer said. "I thought the contractors were taking advantage."

H&J's Marini countered that his company did the work it was hired to do and deserves to get paid.

"We had a contract with set prices," Marini said. "They've got people out there that worked really hard, that did a good job. Now they're coming back and saying, 'We're not going to pay you.' It's not right."

One of the contractors, Gloria Lawrence of Lawrence Fence, is owed $206,722 by Moroso Investment Partners, according to a lien she filed in late November.

"They told me $135,000 - take it or leave it," Lawrence said. "I can't take that kind of a loss. I stand a very good chance of losing my business because of them."

Last year, investors Joseph Lubeck, Raymond E. Graziotto and J.C. Solomon II bought the property along the Beeline Highway from the Moroso family. Records indicate the trio paid $10.4 million for 196 acres, and the new owners said they paid much more for Moroso's operations.

Back to the same kind of management Its a shame and the word is already out on them up here.