ISC Discontinues Pursuit of Speedway in Staten Island




 
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December 6th, 2006  
Team Infidel
 
 

Topic: ISC Discontinues Pursuit of Speedway in Staten Island


International Speedway Corporation ("ISC") today announced its decision to discontinue pursuit of a speedway development on Staten Island. The Company will explore alternative strategies for the 676-acre parcel of land it currently owns in the borough. ISC had been evaluating the feasibility of developing a motorsports entertainment facility on Staten Island since late 2004. This study focused on a number of key project components such as:
- Evaluating the potential for securing the necessary land-use change and permitting approvals;
- Analyzing the potential requirements and related costs that would be imposed on the project as conditions of any approvals received;
- Further analyzing the potential economic model for the speedway development, including construction and other costs; and,
- Determining the level of available public incentives for the development.
The decision to discontinue speedway development efforts has been driven by a variety of factors, including:
- The inability to secure the critical local political support that is necessary to secure the required land-use change approvals for a speedway development;
- Even if ISC had secured the necessary political support, it became apparent that the Company would have been faced with unacceptable approval requirements, including operational restrictions that would have made the facility difficult to operate and a significant challenge to market;
- The increased risk that these unacceptable approval requirements could result in higher construction spending and annual operating costs, which would have a significant negative impact on the financial model for the speedway development.
"While we are disappointed that we could not complete the speedway development on Staten Island, our enthusiasm for the metropolitan New York market is in no way dampened and we continue to view the region as a prime location for a major motorsports facility," said ISC President Lesa France Kennedy. "We clearly believe that if we had been able to proceed through the full public process, the significant benefits this project represents would have generated a more positive reaction. However, based on the results of our feasibility study, specifically the lack of political support and unacceptable land-use approval requirements, we have determined it is in the best long-term interest of ISC to discontinue the Staten Island speedway development and pursue other strategic alternatives for the property."
The Company will immediately begin to research and develop market demand studies to assist in the evaluation of various alternative strategies, including potentially selling the property in whole or in parts, or developing the property with a third party for some other use. ISC believes the value of the property will be in excess of $100 million once it is filled and ready for sale.
"Despite the political challenges we experienced," continued Kennedy, "we appreciate the support from a variety of groups on Staten Island including the business, civic and residential communities to bring a speedway to the area. Due to the considerable interest and support for NASCAR racing in the region, we remain committed to the pursuit of a motorsports entertainment facility development in the nation's number one media market. We believe a facility in this area represents a significant long-term opportunity for our company, and is one component of several broader strategic growth opportunities ahead for ISC. We look forward to our continued success in achieving these opportunities and sharing our progress in the future."(prnewswire.com)
 


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