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Future of Heartland Park (and KS Nationals) in jeopardy (2 Viewers)

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I don't think Irwin should get a penny until he shows were the money went, maybe jail time for some, I hope someone who can run the track buys it
 
The Topeka Capital-Journal finally ran my letter to the editor

Letter: Imming should have to pay city's legal fees

Registered member said:
Chris Imming should pay the city of Topeka’s legal fees for his failed appeal of Shawnee County District Court Judge Larry Hendricks’ decision that his petition was invalid.

Imming lost one decision, and then he lost again. The public court system is not his personal playground. The people of Topeka have had enough of his renegade legal maneuvers. Imming’s continued legal obstructionism and stalling tactics have cost the taxpayers of Topeka and he should be held accountable.

All Imming has accomplished is to divide the populace and weaken Topeka. I find it ironic that Imming stated that “democracy was lost” when he appealed, yet he has been operating outside the boundaries of public accountability the entire time.

Imming is not an elected official and doesn’t represent the citizens of Topeka. I do not condone his legal obstructionism and he should be held accountable for the damage he has done.

If Imming wants to make a positive difference, I would encourage him to run for office or find volunteer opportunities that will strengthen Topeka.

NICK SCOTT, Topeka
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This just in...

NHRA MELLO YELLO SERIES TICKETS ON SALE FOR NHRA KANSAS NATIONALS AT HEARTLAND PARK TOPEKA

GLENDORA, Calif. (April 8, 2015) — NHRA officials announced today that tickets are on sale now for the 27th annual NHRA Kansas Nationals at Heartland Park Topeka, May 22-24. The race is the eighth of 24 events in the 2015 NHRA Mello Yello Drag Racing Series and the race will be televised on ESPN2.

To purchase general-admission or reserved seats for the NHRA Kansas Nationals, log on to www.NHRA.com/tickets or call the NHRA Ticket Sales Center, (800) 884-NHRA (6472). General admission tickets for children 12 and younger are free with any paid adult ticket. Students with valid ID can purchase tickets for 50 percent off at the event ticket office.

Once again a part of the high-octane Memorial Day weekend, the NHRA Kansas Nationals promises to provide an excellent showcase for the world’s fastest race cars on the national stage. Critical points will be up for grabs as teams in Top Fuel, Funny Car and Pro Stock race to better their positions in the Mello Yello Series standings as they pursue one of the top 10 spots in the six-race Mello Yello Countdown to the Championship playoffs, which begin in September.

Traditionally one of the quickest tracks on the circuit, Heartland Park Topeka’s dragstrip has hosted NHRA Drag Racing for 26 years. The multi-purpose motorsports facility, which opened in 1989, has been the site of many record-breaking performances by a wide variety of NHRA stars.
 
Registered member said:
***Topkea voters turn out incumbent city council supporters of saving Hearltland Park at polls by wide margin: http://cjonline.com/news/2015-04-12...ents-cite-heartland-park-voter-turnout-losses
;)
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Not sure there is any good news in there unless I just can't understand the article.
  • 12% Voter turnout - This translates to me thinking the Topeka public could care less about the existence of HPT and the $$ it means to the community
  • 2 staunch HPT supporting council persons voted out - I suspect their newly elected replacements are not as supportive which may have led to their being elected.
To me, I am not sure this will end well. I want it to, but I am skeptical at best. Hopefully I am wrong.

Understand NHRA probably had to put tickets on sale because the typical advance sale period had opened. Normal business I would assume, regardless of the current situation. They can always provide vouchers / refunds if the event doesn't happen. But they couldn't wait until zero hour to put tickets on sale and risk below normal attendance.
 
The way the council members have tried to sneak this thru looks to me that allot of the money that went into the hands of the current owner may not have been spent were it should have been, a quick buy out to keep the facts from coming to light, would be very telling to see who might have received some of that money, just doesn't add up to buy out someone who hasn't accounted for were the money went and ran the track into bankruptcy, just smells real bad. I hope they get to the bottom of this and the track makes a comeback and the person or persons responsible for this failure are held accountible
 
I figure the fat lady is warming up and the man is about to play TAPS at HP in Topeka.
 
City vote to come May 5 on whether to proceed with Heartland Park purchase

Registered member said:
Topeka city manager Jim Colson announced Tuesday evening he plans for the city’s governing body to vote May 5 on whether to proceed with the city’s proposed purchase of Heartland Park Topeka.

Colson spoke at a meeting in which four new council members were sworn in — the city’s largest such total in 10 years — and Councilwoman Karen Hiller was elected deputy mayor after having lost in two prior bids for that position.

While the version of the governing body that left office Tuesday had approved every proposal it considered to proceed with the purchase of the financially troubled Heartland Park racing facility, turnover that body saw as a result of last week’s election could threaten the move’s chances for final approval.

Colson said Tuesday after governing body members hear a presentation and discuss the proposed purchase at their April 21 meeting, the city plans to hold one and possibly two public town hall meetings prior to the May 5 vote.

The atmosphere for Tuesday’s meeting in council chambers was upbeat and cordial as the governing body held a ceremony to recognize outgoing Councilmen TJ Brown, Chad Manspeaker and Nathan Schmidt. The other outgoing member, Denise Everhart, was absent.
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Event planner upset over lack of response from Heartland Park Topeka officials on track's schedule

Registered member said:
Rob Wilkie booked a drag racing event and car show at Heartland Park Topeka in November and began promoting it on the Internet.

More than 120 cars are expected to be at the event, bringing more than 200 people to Topeka to eat, drink, shop and stay in local hotels, Wilkie said.

Five months after booking the event, Wilkie became frustrated because he couldn’t get anyone from the facility to answer his phone calls or Facebook messages about the event.

Takeover Topeka Show N Go, an event sponsored by Pontiac G8/GTO Holden Cars, is slated for June 5 and 6.

“I had chosen Topeka because it was the most centrally located drag strip in the country,” said Wilkie, of Minnesota. “I didn’t even know about this whole track issue at the time.”

The “track issue” Wilkie is referring to is the future of the financially troubled Heartland Park racing facility.

The former city council had approved every proposal it considered to proceed with the purchase of the facility. However, with four new city council members being sworn in earlier this week, things aren’t quite so certain.

The current governing body will vote May 5 on whether to proceed with the purchase.

Topeka city manager Jim Colson said Tuesday after governing body members hear a presentation and discuss the proposed purchase at their April 21 meeting, the city plans to hold at least one public town hall meeting before the vote.

While current Heartland Park owner Raymond Irwin in February released a tentative 2015 schedule, he said Friday morning the facility is “being cautious.”

“I don’t know where we’re going to be with the city,” Irwin said.

Irwin said the NHRA Summer Nationals will take place as planned May 22-24. However, there will be a new owner soon, and it will be up to the new owner to schedule events.

The city declined to comment on the situation, said Aly Van Dyke, spokeswoman for the city.

Irwin referred scheduling questions to Mike Walker, who served as facilities and operations manager for Heartland Park until December.

Walker said he reached out to Irwin via Facebook on Friday.

“It all comes down to everything being up in the air with the city,” Walker said. “We have other events scheduled, too. We will try to accommodate and do all the events we have.”

Irwin had received a friend request from Walker by noon, he said. The two spoke, and Irwin said the facility is “hopeful” it will be able to host the event.
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Now he is holding the track hostage and not letting events go forward, tell everyone were and who the money went to, then maybe the people in Topeka will back buying you out of bankruptcy, unless you are hiding something
 
Heartland Park sales-tax plan insufficient to meet annual bond payments

Registered member said:
A City Hall strategy to rescue Topeka taxpayers from millions of dollars in old debt associated with the beleaguered Heartland Park racetrack falls $550,000 short of meeting bond payment obligations in the initial five years of the deal.

That previously undisclosed gap, city officials said, would have to be made up with local property taxes.

A Kansas Open Records Act request also revealed intent of the Kansas Department of Commerce, for the first time, to withhold sales tax revenue generated by a retailer in a STAR bond district from being used to service debt on an economic development project. In terms of Heartland Park, Walmart wouldn’t help pay bond debt.

Meanwhile, a city official said it had been unwise to promote without verification a Heartland Park consultant’s claim the track was responsible for $160 million annually in economic benefits. The impact may be overstated by two-thirds.

Long-term focus

In response to KORA requests, the state released a document demonstrating state and city sales tax designated to pay old and new Heartland Park bond obligations would be insufficient to consistently meet annual requirements until 2019. Over 11 years, it would miss the mark in years two through five.

Topeka City Attorney Chad Sublet said information city staff shared with the public during the past 10 months on Heartland Park didn’t include the year-by-year analysis revealing local taxpayers would be on the hook for the $550,000 shortfall.

He said financial disclosures by city officials focused on a pledge to address all bond debt affiliated with the motorsports complex by 2025.

“Our interest was assuring the public, the council, anybody that would listen, this is a plan to address our debt service problem over 11 years," Sublet said.

Doug Gerber, the city's director of administrative and financial services, said drawing upon state tax revenue to pay the bulk of the debt while filling shortages with Topeka property tax revenue was preferable to the city absorbing entirety of debt on the racetrack bonds.

Topeka is ineligible for additional state money to pay previous STAR bonds without issuing a supplemental set of STAR bonds, he said.

“This is in the long-term best financial interest of the city,” Gerber said. “I'm way more comfortable with that than having an $8.2 million deficit, which is what we have now. I'll take those numbers anytime.”

Gut check

Information about the repayment issue surfaced as the Topeka City Council prepared for a presentation Tuesday by city administrators on the quest to save Heartland Park by satisfying financial demands of racetrack operator Ray Irwin of Jayhawk Racing as well as expectations of CoreFirst Bank and Trust, which is owed millions of dollars by Irwin.

Topeka City Manager Jim Colson scheduled a vote May 5 by the council — four members recently took office — to determine whether a majority favored proceeding with framework of the deal negotiated by representatives of CoreFirst, Jayhawk Racing, City Hall and the Department of Commerce.

The city of Topeka, which owns the combination dirt-, drag- and road-racing property, would be solely responsible for paying existent STAR bonds if CoreFirst exercised its right to foreclose on Irwin. The city is keen to buy out Irwin’s “reversionary” interest in the track, which gives him the right to claim the property after all bond debt was satisfied.

If the city council commits to bonding, Colson would submit a final STAR bond application to the commerce department. The city would move to wrap negotiations with a company capable of managing the track. Bonds would be issued. CoreFirst and Irwin would be compensated. The city would obtain clear title to the Topeka track that opened in 1989.

Colson said the objective was to provide an opportunity for Heartland Park to serve as “a world-class motorsports venue.”


Big money, fight

Fate of Heartland Park has been the focus of legal, financial and political intrigue since the city council formally took up the STAR bond concept in June. An appeal of lower court decisions in litigation resulting from an attempt to compel a public vote on the deal is pending before the Kansas Supreme Court.

Senate Minority Leader Anthony Hensley, a Topeka Democrat who requested a legislative audit of the Heartland Park proposal, said the controversy demonstrated necessity of amending state law governing STAR bonds. He said reform was needed to guarantee cities and counties were held accountable when bonding commercial, entertainment or tourism developments.

“There’s no question they’ve used faulty numbers to make it look better than it is,” Hensley said.

In 2006, the city issued $10.4 million in STAR bonds for Heartland Park. Tax revenue projections regarding payment of that debt were flawed. The city’s annual subsidy on those bonds ranged from $241,000 in 2011 to $682,000 in 2008. Without intervention, the city’s subsidy could balloon to $800,000 annually.

If $5 million in new sales tax revenue bonds were issued in 2015, the city would pay Irwin $2.4 million and CoreFirst would receive $1.9 million.

Overall, the state would contribute $16.4 million in sales tax revenue to service public debt on the complex. The city of Topeka would provide $1.6 million from sales taxes and fill gaps with property taxes.

Walmart anomaly

Documents obtained under KORA included a series of emails tied to work by the Legislature's auditing division.

In a March report, auditors concluded the Heartland Park project was atypical but eligible for STAR bonds. The oddity was that new bonds were sought to save a destination venue rather than create a fresh attraction. Auditors challenged elements of the Heartland Park plan and issued recommendations for strengthening Kansas law guiding issuance of STAR bonds. A reform bill is pending in the Senate.

The emails indicated the commerce department has been developing an unprecedented repayment map for the Heartland Park bonds.

The project requires geographic expansion of the district from which state and city sales tax revenue would be diverted to pay old and new STAR bonds. The district would extend north along Topeka Boulevard to capture two major revenue generators in the vicinity of 37th Street — Walmart and the Bozarth automobile dealership.

Commerce Secretary Pat George has yet to make a final ruling on the map, but the state and city appear to have agreed sales tax revenue from Walmart shouldn’t apply to retiring Heartland Park’s debt. That cash will continue flowing to the state’s treasury.

“STAR bonds give the secretary a great deal of latitude and discretion in administering the program,” said Matt Keith, a spokesman for the agency.

Emails revealed the Kansas Department of Revenue recommended the bond-repayment map be modified to expel Walmart rather than pursue the administrative adjustment.

Mistaken stat

The city officially projected sales tax revenue in the newly defined Heartland Park district would grow 1 percent annually.

However, communications divulged through KORA indicated a city employee calculated annual sales tax growth in the zone to be 0.5 percent in the previous decade. That was an error, said a city spokeswoman, who indicated the correct rate stood at 3 percent.

Gerber, the city’s director of administration and finance, said 1 percent was appropriately viewed as conservative “especially as we’re trending upward.”

The rate projection is significant because a 1 percent adjustment resulted in the projected deficit in four of 11 years in the amount of $550,000. Slicing the rate in half would produce a sales tax revenue deficit in 10 of 11 years totaling $925,000.

Without Walmart contributing to bond retirement, Bozarth must remain a viable business in its current location to make the Heartland Park venture succeed.

“We're pretty confident,” said Sublet, the city’s attorney. “They've also invested quite a bit of money in that facility in the last few years.”

“Could something catastrophic happen in the future?” Gerber said. “Of course.”

Exaggeration

For months, the city’s campaign to generate support for the STAR bond correction included statements declaring the racetrack contributed $160 million each year to the economy.

That statistic was drawn from a 2012 market research report prepared by Hedges & Co. Hedges was hired by Irwin’s Jayhawk Racing — the business with the most to gain if the bond deal goes through.

Sublet said state auditors indicated Heartland Park’s influence was far less than $160 million.

“What they said in post audit was we believe it’s a third of that,” Sublet said. “It's $53 million in economic impact.”
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My question is where did the 10 mil go, and why buy out someone who ran the track out of tax payers money without showing were the money went
 
Hey Mark, I hate to be the one to tell you this, but Irwin basically ran the standard Venture Capital playbook that happens on Wall Street everyday. It goes like this:

step 1) Borrow ridiculous sum of money through corporate shell
step 2) Pay yourself exorbitant salary
step 3) Try to make a profit (profit not necessary to getting paid)
step 4) Sell off business assets
step 5) Pay yourself again
step 6) Find some other poor schmuck to buy business and assume debt (or declare bankruptcy)
step 7) Walk away

What Irwin is doing is no different than what Mitt Romney and Bain Capital (and hundreds of other firms) have done in America.
 
Kansas City-area firm favored by city officials to lease Heartland Park

Registered member said:
A Missouri businessman who held interest in a Kansas City drag strip closed in 2011 emerged Monday as the front-runner to lease Heartland Park in Topeka if the city council moves ahead with debt restructuring to save the motor sports complex.

The Topeka Capital-Journal learned city staff concluded newly created Shelby LLC, led by Monopoly Acquisitions’ executive Chris Payne of Raytown, Mo., was best equipped to breathe life into the dirt, drag and road racing facility operated for more than a decade by Jayhawk Racing’s Ray Irwin. City staff evaluated four applications submitted in December.

Payne was part of an investment group that owned Kansas City International Raceway, anchored by a drag strip, when it was sold for $1.5 million to Kansas City, Mo. KCIR was acquired by the city to build a public park.

Monopoly Acquisitions is primarily associated with commercial buildings, strip malls and apartment dwellings, but Payne’s background includes the KCIR ownership and time behind the wheel of race cars.

In recent years, Payne attempted to purchase Heartland Park and explored the potential of constructing a new track in the Kansas City metropolitan area.

“We always had an eye on Topeka versus building another one in Kansas City,” Payne said. “We’ve kind of been waiting in the wings. We jumped at the opportunity ... to voice our interest in it.”

He said the Heartland Park situation contrasted with his KCIR experience because Topeka officials were motivated to build up the racing industry rather than maneuver as people did in Kansas City to shut down a track.

“This is a unique situation,” Payne said. “In my prior history of racing, I was fighting the city to race. It’s the complete opposite. I think that it’s great there are so many people trying to see that the track survives, including the city.”

A final decision on the management of Heartland Park and a series of pivotal financial arrangements must be approved by the Topeka City Council. With four new members on the council, a May 5 vote was scheduled to ascertain whether a majority want to proceed with a plan for the city to acquire clear title to Heartland Park before leasing or selling the property.

Details about the length of a potential lease or annual compensation paid to the city wasn’t disclosed pending future negotiations. Payne’s attorney, Wesley Carrillo, said the objective was the establishment of a lengthy business partnership with Topeka.

“Any lease terms are going to be long term,” Carrillo said. “We’re not looking at a year-to-year situation.”

Topeka City Attorney Chad Sublet confirmed a controversial financial guarantee to the National Hot Rod Association for races set for May would be dropped. In an attempt to retain NHRA’s presence at Heartland Park, the organization was guaranteed a return of $1.8 million by the city. If race revenue were to fall short, the city was obligated to pick up half of a net revenue deficit up to $900,000.

The evaluation process revealed Payne had the greatest potential to successfully operate Heartland Park and develop the property, said Doug Gerber, the city’s director of financial and administrative services. He said Payne’s notions about commercializing 270 acres of open ground around the track and his established contacts in the racing industry were points in his favor.

“Those are the three factors that really made Shelby stand out among all the proposals,” Gerber said.

Payne said he had contemplated the potential of adding a motorcycle dirt track, a convenience store affiliated with a chain restaurant, the rental of large storage units and leasing of warehouse facilities to automotive companies engaged in research and development.

Under a strategy initially advanced last year but peppered by controversy, Topeka City Manager Jim Colson recommended the city and state collaborate on issuance of $5 million in a special type of municipal bond to provide cash necessary to buy Irwin’s residual interest in the track and cover Irwin’s track debt to a Topeka bank.

Obtaining an unchallenged title to Heartland Park would allow payment of new bond debt and more than $8 million in old bond debt with a combination of state and city sales taxes. It is possible local property tax revenue would be required to fill year-to-year revenue shortages, depending on the final repayment schedule.

The intent is to pay Irwin $2.4 million for his “reversionary” interest in Heartland Park and allocate $1.9 million to cover Irwin’s default on debt at CoreFirst Bank and Trust. The city owns the racing facility, but needs to acquire Irwin’s reversionary right to claim the Heartland Park property when all bond debt was paid around 2025.

Payne’s company wouldn’t assume responsibilities at Heartland Park until after completion of the bonding transaction in mid-2015, the city’s attorney said. Sublet said any contract with Payne wouldn’t include a reversionary interest.

Sublet also said elected officials on the city council and the general public would have opportunities to pose questions and comments about the evolving Heartland Park proposal.

“The governing body has got to weigh in,” he said. “We want the citizens to weigh in as well.”

Topeka resident Chris Imming, who attempted to force a public vote on the Heartland Park deal, has a pending appeal of lower court decisions before the Kansas Supreme Court.

Meanwhile, the Kansas Legislature’s auditing arm completed in March an analysis of the idea of issuing a second set of State Tax Revenue Bonds for Heartland Park. Revenue from the racing facility was inadequate to meet expectations when $10 million in STAR bonds were sold for Heartland Park in 2006. The city has been subsidizing repayment of those bonds for years.

State auditors concluded expansion of the bond repayment district beyond Heartland Park could generate sufficient revenue to pay both sets of bonds. Auditors emerged from that review with a set of recommendations for reform of Kansas law on STAR bonds to hold municipalities and private business partners more accountable.

Topeka city officials also assessed bids submitted by MK Investments; Larry Sinks; and International Motorsports Entertainment and Development Corp.

In February, individuals involved in MK Investments sold a stake in Lakeside Speedway. Michael Johnson and his wife, Kyle Johnson, agreed to sell their interest in that track to business partners Don and Donna Marrs after the Marrs’ leveled fraud allegations against the Johnsons.

Sinks was owner of JoeCollege.com, which in 2008 was ordered to pay Kansas Athletics Inc. $660,000 in attorney fees and expenses resulting from a legal dispute over his KU-themed T-shirts.

IMEDC, based in Coon Rapids, Minn., had been active in developing NASCAR and NHRA complexes in the Midwest.
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