Could Detroit benefit from a NASCAR-style race track?

April 23, 3:16 AMDetroit NASCAR ExaminerJosh Lobdell

Previous Next

1 comment Print Email RSS Subscribe

Subscribe

Get alerts when there is a new article from the Detroit NASCAR Examiner. Read Examiner.com's terms of use.

Email Address   Include other special offers from Examiner.com Terms of Use

Should Detroit build a race track?
Getty Images/Todd Warshaw

Most people in the region surrounding the City of Detroit remember the failed plan to build a race track on the site of the Michigan State Fairgrounds. Ultimately that plan failed because of a large complaint over the kind of noise pollution a race track would create.

That doesn’t necessarily mean it was a bad idea, just that it was a bad idea for the Michigan State Fairgrounds. Nowadays there are so many unused parcels of land in Detroit, land that is far from any inhabited houses, that the idea of a NASCAR-style race track in Detroit could be good for the community on several different levels.

In my mind the site of the old railroad depot is prime waterfront real estate that could easily be developed into a fine NASCAR-style race track. Since Michigan International Speedway is only 70 miles away and already holds two dates on the Sprint Cup schedule, a race track within the city of Detroit would never get a cup race date. However, that is not to say that a track within Detroit’s city limits could not be successful featuring races in other series.

MIS only has one Nationwide Series race on its schedule, and one NASCAR Camping World Truck series race. On top of that MIS holds one ARCA race date as well. This seems to suggest that the Detroit NASCAR market could support an additonal race of each of these two NASCAR series.

Since NASCAR operates many other regional touring series it would not be that much of a stretch to see races from the Camping World East regional series, or even the NASCAR Canadian Tire Canadian Series featured at a race track in the city of Detroit. The case could also be made that the ARCA series could benefit highly from having a race at a track within Motor City, USA.

Before we speculate on what kind of racing a Detroit track cold feature we should look at how tracks like this benefit the local economy. According to ISC, the company that owns MIS, each year MIS generates around $400 million in direct and indirect economic benefit.

A better number than this is MIS has compiled a study that has shown around 55% of attendees to MIS are from out of state. That means this NASCAR track is pulling in a large amount of out of state travelers and they are spending money in Michigan.

Let us focus in on what MIS adds to the local governments.  Each year MIS pays over $1.8 million in property taxes.  It also generates around $354,000 in personal income taxes, and rings up $9.7 million in state sales tax.

Instead of looking at this from a place like MIS, let us take a look at what the Detroit Grand prix adds to the local economy. According to Detroit Sports.org , the 2007 Detroit Grand Prix, held on Belle Isle, generated nearly $53 million in direct economic benefit for Detroit. Could anyone imagine what kind of benefit a NASCAR track holding five or six races a year could generate in tax dollars?

Let’s think about that right now.  The land that the old railroad depot sits on generates no money for the city or the state. It is city owned so there is no property tax, and it has been run down so bad that finally even the Detroit City Council has agreed that is time to simply implode the building.

Why shouldn’t Detroit lobby ISC or its corporate rival Speedway Motor Sports Inc. to build a nice short track facility in the city that birthed the American auto industry?  Not only would it be good for the city in terms of revenue, but it would give the American car companies a key marketing tool. Let’s face it the American auto companies need all the help they can get right now.

On top of that there are now at least five world class hotels in the downtown area of Detroit. These hotels will be dependent on Detroit getting world class events that bring in tourist dollars. A NASCAR style track built on the land of the Old Railroad depot would not only boost the downtown area but revitalize the Cork town area of Detroit so many us use to frequent while attending games at old Tiger Stadium.
 

Can Sports Save Detroit?

From the World Series to the Super Bowl, Detroit has hosted nearly every big-time sporting event imaginable over the past few years. With all the challenges facing the local economy, just how critical are sports to the city’s future?

Examiners have a wide variety of different perspectives on the issue. Click here for their views.