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Post by dynodad on Jul 15, 2013 22:47:20 GMT -5
I was at the meeting for an hour and was kind of set back when Ronnie said as soon as the Track was built He and His Wife would quite working and run the Track FULL TIME. I don't think the Track will generate enough Income to make him an easy life style right off the bat. The Old MAR was not run by a Full Time OFFICE GROUP. I would think that it would take a little while before the Track would be Solvent enough to make any Big Payroll's. That is just my guess. Back in the late 80's I borrowed $250,000 to build my business and lived pretty slim for a few years and then was able to pull a descent salary from it. I was a 2-3 man shop back then and $250 was a ton of money back then and I paid it back in 7 1/2 years. This track won't pay back that fast even with a one Big Event every month, I know what the payment is on $1.6 mill and it is a lot. If I was Younger and Better Health I would step up and be a Major Investor, But I would want my % say in the operations also. I was successful in my own business by watching what I spent my money on and paid my bills on time. I think Ronnie needs help, but he isn't willing to give up control and that is going to be a REAL PROBLEM for any Major Investor. We just got to keep the Faith and it may still happen in time. I got my fingers crossed and eye's also. These 5-6 hour drives to go Race are not fun anymore. Want my Old MAR BACK and close to Home.
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Post by bigblocknotch on Jul 16, 2013 20:16:19 GMT -5
I've Got it!!!! Tell the bank you need $1.6 mil to build a hotdog and burger stand with a 3/4 mile long parking lot... think they'll go for it?
Seriously though, I wish you guys the best of luck and my offer of free labor stands. Just no money. If you havent already, looked into a TIF, or Tax increment financing. Im sure you already have, but just in case. It would drasticly decrease the amount of cash needed to borrow from lenders/investors. They got one for the old 22 junction project, and Im sure the locals there would vote on it.
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Post by dynodad on Jul 18, 2013 17:07:55 GMT -5
The TIF makes sense. The New Wal-Mart and Lowes and Home Depot, All of that area is a TIF District. The sales tax is 1/2 Cent Higher in the TIF District than anywhere outside of it. So the money is Generated via Sales Tax and not the District Stores Paying it out. They are using that to build all the New Shopping Centers in Chesterfield. Voters have to approve it is the only Big Hurdle. Takes a while to get it out for a vote also.
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Post by dynodad on Jul 18, 2013 17:09:32 GMT -5
Left out on that last posting that was a TIF District in WENTZVILLE that has Wal-Mart Lowes, Etc.
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Post by sg3526 on Jul 19, 2013 7:31:04 GMT -5
I don't think the track will generate of enough sales tax income to justify any type of TIF. Only thing they would be charging sales tax on would be shirts, concessions and other tangable items. I'm sure there would be some type of tax to the city/county for gate fees but what that would be I haven't a clue. The Wal-Mart, Lowes and Home Depot generate a lot of sales tax revenue for Wentzville, literally everything that goes out the door is taxed and they get a piece of it.
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Post by bigblocknotch on Jul 19, 2013 18:22:10 GMT -5
The TIF would help build the track and all the infastructure that will need to go with it( traffic control, utilities, ect) The City of New Florence would have the TIF, maybe even the county. If passed b ythe voters, They would add a sales tax and EVERYTHING in the TIF district would pay on that tax, Before the track is built. TIFs are designed to Build industry that bring money and jobs to the area. If Everybody around there is still excited about getting a track, I dont think there will be a problem getting it passed. Im not sure how much of it can be used for building the track, or the payback schedule, but the only way there gonna know for sure is if they ask. Wont cost a dime to do that. They(city) can tell them exactly how much a TIF will generate by historical sales tax stats.
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Post by crossbonesdennis on Jul 19, 2013 19:10:10 GMT -5
I don't know what GMP pays but I was told when Dover owned GIR the property taxes were around 2 mil a year when they closed the place. The rate had doubled in the last year they were open and that is one of the reasons they closed the facility. I don't know if it was included in that price but they also had to pay a yearly tax on every permanent seat if they sold a ticket for that seat or not. That's why they had the temp grandstands. The permenant tax didn't apply.
I think the seat tax was only $3 or some small amount but when you have 50 or 60,000 seats, it adds up.
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Post by redlite on Jul 22, 2013 12:09:46 GMT -5
I was at the meeting July 14th and this is what I learned directly from Ronnie.
It will be a quarter mile track.The only quarter mile track in Missouri.
MAR LLC has economic development grants in place and waiting.This grant is contingent upon getting an SBA loan type 504 in place and approved.This is the the reason dirt has not moved!
The bank that originally approved the loan,backed out at the last minute.Ronnie would not name the bank as he still works with them on other matters.MAR LLC needs 1.6 Million dollars from a bank in the SBA system to release the grants.Thats why private equity funds (angel investors) wont work.Ronnie said with grants and his own assets (House etc.) as collateral MAR LLC has approx.600k in the pot.The loan is typically called a 40-50-10 loan.Thats 40% SBA guaranteed,50% bank and 10% MAR LLC.With the amount of money and collateral MAR LLC(Ronnie) has it is more like a 40-30-30.IDK do your own math.
They need to move 31k yards of dirt = 100,000 dollars.Buy 300,000 dollars of rock and approx. 800,000 in concrete costs the rest is pits and infrastructure and initail operating costs.
As far as the attorneys fees are concerned they are legit and resonable and needed.I was dead wrong in my earlier posts concerning that matter.Payment of the fees is figured into his business plan and Ronnie considers this money well spent.
Ronnie is the general contractor on the project and will not be paid a Dime untill the track opens.The business plan is based on car counts from 225 -300 per event,less on Wed.test n tune,more on weekends depending on the events.
MAR LLCs conditional use permit is good for a long time.Two county commissioners are ex MAR racers and want this to happen as well.
Thanks to American Legion Post 323 for hosting the meeting,thanks to Lynette (Ronnies SBA rep) for her input,and most of all thanks to Ronnies family for putting up with complete strangers giving them crap about the project.Lets all work in a positive way to further this proect.A safe place to race is good for the whole state!
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nutup
Junior Member
Posts: 82
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Post by nutup on Jul 22, 2013 17:58:51 GMT -5
How does this get taken care of ? Or what needs to happen?
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Post by crossbonesdennis on Jul 27, 2013 7:19:47 GMT -5
It's been quiet on here considering the recent meeting.
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Post by sg3526 on Jul 28, 2013 9:36:48 GMT -5
It's been quiet on here considering the recent meeting. No Money No Progress No Reason to Talk |
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Post by hemiman4262003 on Jul 28, 2013 10:24:16 GMT -5
Ronnie still looking for a bank for funding,so just a waiting game
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Post by leep0545 on Jul 28, 2013 12:18:28 GMT -5
I have stayed away from this discussion for some time but here goes. I was in the lending profession for 20 years and so from my experience I can say small start up business have the highest failure rate going and would venture to say race tracks are certainly in this category. on top of this the lender will see there is already a red flag up with a 42,000 dollar judgement against the company for a unpaid debt. can only speak from my lending background but if their loan application came across my desk unless the principals had personal assets to cover nearly 100% of the loan request it would not get a second look.
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Post by dynodad on Jul 28, 2013 15:37:56 GMT -5
I have had a lot of Faith that this would happen, But after the Meeting it is pretty clear that the MONEY is not there to build this Facility. It sucks as gateway is not that great. With KCIR gone it makes Racing tough. With Ronnie not wanting to give up ANY CONTROL of the development to Investors NOBODY is going to dish out that much money without some say so in what happens there. It is a shame because there are a lot of people want to see it built, Not just Racers but spectators. All we can do is hope someone will take up the cause and help out. Time will tell.
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Post by sdfoster91 on Jul 28, 2013 19:57:12 GMT -5
I have been watching the status of this track for almost 2 years.
I like many others living in St. Charles area, have moved out towards wentzville because that is the trend plain and simple.
I like many others do not want to drive all the way to Gateway to race. If people with MAR and the lenders would just grow a pair and get this track made I know people would go and it would be a huge sucess.
It can be rest assured you would get every St. Charles county drag racing enthusiast to leave gateway and go to MAR. This is a no brainer. This track is needed badly for the ever growing population in the area.
Just because you don't get a huge showing for some lame car shows dosn't mean there is not a lot of money to be made. People want to race without driving for 3 hours so make it happen.
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