Getting around the Inner Harbor may test the patience of drivers most days, but a new deal approved by Mayor Stephanie Rawlings-Blake and the City Council will turn the streets of Downtown Baltimore into a world-class race track in August 2011.
The 5-year agreement will allow for an IndyCar® 'Baltimore Grand Prix' street-racing event around the Inner Harbor and Camden Yards. "This is a game-changer for Baltimore," Mayor Stephanie Rawlings-Blake said after voting to approve the agreement.
The brainchild of Baltimore Racing Development (BRD), the Baltimore Grand Prix will be a three-day event that is expected to draw 100,000 indy racing enthusiasts from across the globe to Charm City and bring in some $80 million dollars to the local economy.Over five years, the race is expected to generate $11 million in direct city tax revenue, create nearly 2000 full-time equivalent jobs and $250 million in spending injected into the City's economy, according to the Economic Impact Report released by BRD.
Mayor Rawlings-Blake says that in addition to filling City hotel rooms and restaurants, the street race will "change the way the world sees Baltimore," as a result of global media exposure to millions of Indy Racing League (IRL) fans who attend similar events in Monte Carlo, San Paulo, Long Beach, and St. Petersburg. The race will be broadcast on national television to more than 3.5 million domestic viewers. Related media and marketing exposure is valued at an estimated $27.5 million over five years, according to the economic report.
As part of the agreement, Baltimore Racing Development will:
- Share event revenues with the City and pay an annual event fee.
- Comply with the City's Minority/Women Business Enterprise Program (MBE/WBE).
- Spend $12 to $14 million on race preparations, using primarily local businesses and labor.
- Create a 'Community Benefit Fund' of no less than $500 thousand over five years to make grants to community organizations in neighborhoods impacted by the event.
"BRD is deeply committed to Baltimore City. For us, making sure that all City residents, businesses, and communities benefit from this event was a top priority," says Jay Davidson, president of BRD. With the approval of today's agreement, the final sanction agreement between BRD and IRL is expected to be completed in the next two weeks, according to both organizations.
BRD and the City have already begun developing an Event Management Plan to address construction, public safety, traffic, parking, and other community impact issues. The event has already received letters of support from surrounding community associations eager to prepare for the event.
The agreement is an important milestone in making the Baltimore Grand Prix a reality. The event is a three day racing festival with many related events which will be free and open to the public. The race will include several ancillary events including a parade, fireworks, concerts, charity receptions, and celebrity races.
According to the BRD, the next step is for the Indy Racing League (IRL) to sign a sanctioning agreement. That should happen by May 31.
"The Indy Race is a huge event for Baltimore. People travel from around the world to attend and spend money in our hotels, restaurants, and attractions while they are here," says Visit Baltimore President and CEO Tom Noonan. "The national media coverage alone is worth millions of dollars in free advertising for the city that will generate new awareness of Baltimore with convention planners and leisure travelers."
Under the terms of the agreement, the City must modify and improve certain streets and sidewalks and other transportation-related infrastructure to comply the standards of the Indy Racing League.
Funds to improve roadways for the 2011 � 2016 Baltimore Grand Prix will come from two sources: Federal Highway Aid under the Surface Transportation program (STP) and a grant repayment agreement based on the City's share of state Highway User Revenues (HUR). The total estimated cost of improvements is $7.75 million comprised of $5 million STP funds and $2.75 in repayable HUR grants. In accordance with federal and state rules, these funds may only be used transportation-related expenses, and may not be diverted to other City programs.
Source: Baltimore City Mayor's Office
Writer: Walaika Haskins