The Des Moines Register du lieu suivant : Des Moines, Iowa • Page 8

Des Moines Sunday Register ST Page 8A Sunday, May 4, 2003 Newton waits to go racing at proposed track Proposed track A developer wants to build a track for auto racing near Interstate Highway 80 by Newton. i 4 1 TRACK, from Page 1A How will he make the $30 million leap from soybean field to Iowa's premier motor -racing facility? Much rests on the next few months as Schlaack begins selling shares of stock in US. MotorSport Entertainment the company set up to build the track. He'll need to convince several dozen people with a minimum of $500,000 each that the racing complex is a good investment. Until those investors are lined up, Newton wont chip in its share.

Schlaack and his partners will try to jettison the baggage the project carries as the reincarnation of a failed proposal. The earlier plan ran into obstacle after obstacle as Newton-area residents objected and developers left. Last, fall, Vision Iowa, the state's fund for major community attractions, turned i 14. 19th Ave. 1 mile I t- 'i 1st Ave 8th Ave.

1 NEWTON Newtonv ETPrl Des Moines Uil GARY FANDEUTHE REGISTER Tracing the track: Jon Ewing, left, Newton's economic development director, and David Aldridge, the city's mayor, survey the proposed site of U.S. MotorSport's racetrack. THE REGISTER (i down the request for $20 million for the speedway plan due to concerns about its financial viability. "I dont think you should mix this project with any other project," Schlaack said. "This project needs to be considered on its own merits." Newton Mayor David Aldridge is convinced that the speedway can become a reality.

"I think he's very capable of putting the project together," Aldridge said. Who are the men taking on the task? Schlaack, president and chairman of the newly formed US. MotorSport Entertainment, is a former executive for insurance company Equitable of Iowa now owned by the Dutch banking and insurance company ING. He left in 1998. He spent last year in New York City as chief operating officer for an investor adviser company called Mark Asset Management Inc.

before returning to Iowa and becoming a partner of Dan Stanbrough, his former neighbor. Stanbrough, 46, of Adel will be executive vice president and chief operating officer for US. MotorSport. He's been in the real estate and development business since 1976. Stanbrough, owner of Stanbrough Realty has been behind numerous projects in the Des Moines area, including the Corporate Woods office park in Clive.

Stanley Clement, 55, of Newton will be executive vice president for special projects with US. MotorSport. Clement has a background in agricultural business. He was involved with the earlier speedway proposal. The three men will be the first stockholders in US.

MotorSport. They hope to find someone from an existing speedway and others to invest and become directors. "Any business in the world is only as good as its people," Schlaack said. "But all of our skills are different." It took U.S. MotorSport a few steps to get the idea on track.

The Newton City Council initially voted 5-1 last month in favor of the new plan, but Schlaack had vowed that the project wouldn't go forward without a unanimous vote because of the divisiveness that had hampered the previous proposal. Councilman Mike Mueller voted against the plan because he was concerned about the finances and because some neighbors of the site warned they'd sue if noise became a problem. As the sole dissenter, he found himself targeted by project supporters. "There was name-calling and so on. The police escorted me to my car and even patrolled my house that night," Mueller said.

Within two days, Mueller had decided to change his vote. "I wasn't against the track, just the way it was structured," he said. "But I realized Paul Schlaack HOME BUSINESS OPPORTUNITY Learn to earn income with your own business. Free booklet. www.doler594.com 888-573-3484 Chc It out! Paying SIOHR, PTtifiruj ")r Wnkn4i.

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Appraised at $7400. Will sell for CMC 1975 34 Ton wasn't going to change his stand, and I didn't want to see the project killed." Newton resident Cindy Lind-strom helped organize a petition drive asking the council to let the residents vote on the proposal. The council declined. Lindstrom said she was concerned about taxes increasing and wished the city would have explored other ideas before settling on one. "I personally don't have anything against the speedway per se because I'm all for economic development but they didn't ask people what they wanted," she said.

Newton, population 15,579, currently points visitors to attractions such as the International Wrestling Institute and Museum, Jasper County Historical Museum, Maytag Dairy Farms, Newton Arboretum Botanical Gardens, and Valle Drive-In Theater. Rita Kanne, 50, of nearby Baxter was against having a speedway when it was proposed the first time. She has since changed her mind. "I think it's a good idea," Kanne said as she ate lunch at Maid-Rite in Newton. "My husband is a big NASCAR fan.

He pays extra so he can get the channel to watch the races." The 78-mile oval track would be located southwest of Interstate Highway 80s Exit 168 about a mile west of where the track proposed earlier was to be built. The first proposal was handled by Jasper County officials and involved county land, whereas the US. MotorSport speedway is to be built on land that was recently annexed into Newton. The city plans to contribute about $9 million tow ard the project. That includes a $1.3 million economic development grant that would be used to purchase the land for the corporation, according to the city's agreement with the developer.

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$900. 515-371-1828 Iowa State university The rest of the money would be spent on public improvements such as roads and sewer and water hookups. The city hopes to regain $2 million through a state grant for road construction. City leaders have also notified Vision Iowa that they will request $5.5 million to help with their share of the project, said Aldridge, the mayor. The city won't begin its work until Schlaack has proven that he has found enough investors.

The county and a group of investors that advanced the previous track proposal ran into trouble when they sought $20 million from Vision Iowa. Not only was Vision Iowa running low on money at the time, but the board members also doubted that the group could raise $22 million from private donors as it planned. Some donors were waiting to see whether Vision Iowa would commit, organizers said at the time. But Vision Iowa board members weren't satisfied with that approach. "I do know that when we finance a project, ours is the last money in," said LaMetta Wynn, a Vision Iowa board member from Clinton.

'We want to be sure that the rest of the money is there before we commit the state's money." The application the earlier organizers submitted to Vision Iowa stated that a motor speedway wouldn't happen without the state's money. "The only reason Iowa is being considered for the development of a motor speedway is due to the Vision Iowa program," the application says. "As explained during the public hearing, Iowa has a very small population base to draw from, thereby making it less appealing to the developer." Not so, Schlaack said after hearing the view of the earlier developers. Market research suggests strong interest in automobile racing in Iowa, he said. Being able to schedule the types of racing events that draw crowds is key, said Jeff Boerger, president of the Kansas Speedway, which is in its third year.

It's difficult for new tracks to get events sanctioned by NASCAR, the National Association for Stock Car Auto Racing, because that organization has tight schedules with few weekends open, he said. "The trick is you have your sanctioning bodies lined up," Boerger said, then determine the demand for particular races. U.S. MotorSport has received commitments in writing from the Automobile Racing Club of America and the American Speed Association, both stock-car sanctioning bodies, and the United States Auto Club, an open-wheel organization, Schlaack said. He wouldn't say how many events each had committed to holding at the track.

He said he was still talking to the Indy Racing League. "They all believe there is an important market for motor-sport entertainment in Iowa, and so do we or we wouldn't be doing this," Schlaack said. Jim Amstutz, general manager of Hawkeye Downs Speedway, the paved half-mile track in Cedar Rapids, said the lesser known races might draw crowds if there is a major promotional effort. "I try to look at the positive and think we could hitch our wagon to them. It might draw more attention to racing" in Iowa, Amstutz said.

"The negative is that people only have so much money to spend, and since it's the new thing, they might pay to see an Indy race and not have much money left for as." Aldridge said the track might be completed by fall of 2004. Schlaack declined to discuss when construction might begin but said the project would take about 18 months to complete. The next and most important step will be for Schlaack to prove that he has the necessary financial backing, said Jon Ewing, Newton's economic development director. "Paul was not a developer per se and has not been into auto racing, but his expertise is management! strategic planning and financing," Ewing said. "Everybody I've talked to and people who know Paul say he will have no difficulty." ACURA 2003 MDX, black, biack leather, loaded, 2.400 miles.

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