The agreement is for Austin to build a $250 million facility for a Formula One racetrack. This will be the first time that a track is built just for F-1 races here in North America.
The Austin event will be promoted by Full Throttle Productions, a company that is involved in NASCAR. Full Throttle’s managing partner, Tavo Hellmund, said, “We are extremely honored and proud to reach an agreement with the F1 Commercial Rights holder. We have been diligently working together for several years to bring this great event to Austin, the state of Texas and back to the United States. All parties involved have a great amount of trust and confidence in each other and are committed to establishing the F1 United States Grand Prix in Austin, Texas, as a prestigious global event.”
The event will generate millions of dollars for the city of Austin. However, this event will initially cost the tax payers of Austin $25 million. The $25 million will not go to building the new race track. No, this money will go to the heads of Formula One racing for the rights to bring the race to the city. State officials are positive that the money put into the race is an investment, as several hundred thousand race fans from across the world will come to Austin to watch these races.
The new United States Grand Prix will start in 2012 and continue here in Austin till 2021. The $25 million dollar tab to host the event seems like a lot of money right now; however, this event will generate more money in one year than a good number of Austin’s biggest events, such as the Austin City Limits Music Festival, South by Southwest, and the University of Texas sporting events.
This event will put the Capital of Texas on the map as a place where Global Companies can do business. “Few cities, if any, in America could rival the connectivity of all the key elements needed for hosting an F1 event as well as Austin. Now, many people around the world will have the opportunity to experience a world-class event, facility and city,” said Hellmund.By T.J. McAloon