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NASCAR's dream of holding a Sprint Cup race in New York City came to a final conclusion with International Speedway's (ISC) sale of Staten Island property for $80 million to Marine Development, LLC.
ISC, is the parent company of Daytona International Speedway, Talladega Superspeedway, this week's upcoming event at Watkins Glen and other tracks is a publicly owned company - NASCAR is privately held.
The 676 acre (274 hectare) complex on an outer borough of metropolitan New York was purchased in 2004 in hopes of erecting an 80,000 seat stadium for major league stock car racing in the US's largest market.
Years earlier Bill France Jr., son of NASCAR founder Bill France Sr. and then CEO had attempted a joint venture with New York millionaire Donald Trump to find a property where, according to France, “you could stand on your tiptoes at the track and see New York City.”
Although the proposed race track had union support local groups, worried about traffic and noise, blocked the construction of the facilities.
There were two, possibly three, deals before this sale was completed.
In a statement, released to the Wall Street Journal and others ISC said:
“The Company, as a result of the sale, expects to receive a cash tax benefit of approximately $41.5 million, based on its current corporate tax rate, that combined with the net proceeds will provide ISC with approximately $117.7 million in incremental cash flow. In addition to the sale proceeds, ISC has already received $4.2 million in non-refundable payments from Marine Development to have had the exclusive negotiation rights for our Staten Island property.
ISC received $7.5 million of the purchase price at closing. The remaining purchase price will be financed with the Company holding a secured mortgage interest in 380 Development as well as the underlying property. In accordance with the terms, the Company will receive the remaining purchase price of $72.5 million in payments of approximately $6.1 million, six months after closing and $66.4 million, 31 months after closing, plus an annual interest of 7.0 percent on the outstanding mortgage balances. The Company expects to receive the majority of its $41.5 million cash tax benefit during fiscal 2013 and 2014.”
ISC's Chief Executive Officer Lesa France Kennedy said, referring to the almost $400 million capital improvement project at Daytona International Speedway " With DAYTONA Rising underway and the other prospective developments on the horizon, this sale puts us in a stronger position to balance the ongoing capital needs of our business, and opportunities to grow the business, while returning capital to our shareholders. This allows us to maintain our disciplined capital allocation strategy and our leadership position in the industry."
ISC, is the parent company of Daytona International Speedway, Talladega Superspeedway, this week's upcoming event at Watkins Glen and other tracks is a publicly owned company - NASCAR is privately held.
The 676 acre (274 hectare) complex on an outer borough of metropolitan New York was purchased in 2004 in hopes of erecting an 80,000 seat stadium for major league stock car racing in the US's largest market.
Years earlier Bill France Jr., son of NASCAR founder Bill France Sr. and then CEO had attempted a joint venture with New York millionaire Donald Trump to find a property where, according to France, “you could stand on your tiptoes at the track and see New York City.”
Although the proposed race track had union support local groups, worried about traffic and noise, blocked the construction of the facilities.
There were two, possibly three, deals before this sale was completed.
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| Photo: NASCAR |
In a statement, released to the Wall Street Journal and others ISC said:
“The Company, as a result of the sale, expects to receive a cash tax benefit of approximately $41.5 million, based on its current corporate tax rate, that combined with the net proceeds will provide ISC with approximately $117.7 million in incremental cash flow. In addition to the sale proceeds, ISC has already received $4.2 million in non-refundable payments from Marine Development to have had the exclusive negotiation rights for our Staten Island property.
ISC received $7.5 million of the purchase price at closing. The remaining purchase price will be financed with the Company holding a secured mortgage interest in 380 Development as well as the underlying property. In accordance with the terms, the Company will receive the remaining purchase price of $72.5 million in payments of approximately $6.1 million, six months after closing and $66.4 million, 31 months after closing, plus an annual interest of 7.0 percent on the outstanding mortgage balances. The Company expects to receive the majority of its $41.5 million cash tax benefit during fiscal 2013 and 2014.”
ISC's Chief Executive Officer Lesa France Kennedy said, referring to the almost $400 million capital improvement project at Daytona International Speedway " With DAYTONA Rising underway and the other prospective developments on the horizon, this sale puts us in a stronger position to balance the ongoing capital needs of our business, and opportunities to grow the business, while returning capital to our shareholders. This allows us to maintain our disciplined capital allocation strategy and our leadership position in the industry."