Townsville: Reid Park V8 Supercars Track/Circuit

$5m puts Townsville V8s back on track
TONY RAGGATT l 16May08 l Townsville Bulletin

START your engines – the posturing over V8 Supercar funding has been resolved.

Sports Minister Judy Spence and Townsville Mayor Les Tyrell announced yesterday that the Queensland Government and Townsville City Council agreed on financial terms to bring a V8 Supercar event to Townsville.

They confirmed that the State and the council would chip in an additional $2.29 million each to meet the cost increase from the original $25 million.

Ms Spence said: "We are now in a position to start serious work for this event to go ahead.

"The Mayor and I agree the event is a showstopper for Townsville and North Queensland, and this is a great example of the State and local government working together to achieve an outcome which is great for both the State and the local community.

"The increased infrastructure costs reflect cost increases in building supplies and normal increases in delivery costs since the project was costed two years ago.

"The State, council, V8 Supercars Australia and specialist engineers have spent the last week poring over the budget to make sure that all possible cost savings were considered without compromising the success of the event.

"We have now all agreed on a total revised construction budget of $29.58 million, which represents a $1.2 million saving on the cost estimates supplied to the Government earlier this year."

Cr Tyrell said now they had managed to find some savings on this project, he would be recommending to council at the next meeting that it formally approved the spending.

"This will enable construction of a multi-purpose pit building, an exciting and dynamic racing track and revegetate and improve the Reid Park area for the event and the local community," he said.

"I am happy with the outcome which I think is a fair deal and I thank the State Government for its on-going support of the event.

"The thing you have got to look at is the city will be getting something like $12 million worth of permanent assets that
will be available for the community all year round."

The agreement would see the total upfront commitment by the Queensland Government for construction of the precinct increase to $14.61 million.

Townsville City Council's upfront commitment would rise to $4.97 million and the Federal Labor Government committed $10 million.

In addition, the Queensland Government would also provide $2.5 million annually, for 5 years, towards staging costs.

V8 Supercar Australia Chairman Tony Cochrane said he was delighted the event was proceeding and was confident it would be a major success.

"V8 Supercars Australia is committed to delivering a top quality event which will not only be a highlight of the V8 Supercar series but also showcase Queensland as a premier sporting and tourism destination," he said.

Ms Spence said the agreements reached between the State Government and the Mayor would enable the parties to get on with the job of delivering an event precinct for July 2009.

DRIVE ON ... Russel Ingall, left, and Steve Johnson, right, look over plans with Mayor Les Tyrell

V8s are coming to Townsville
TONY RAGGATT l 17May08 l Townsville Bulletin

THE roar of the V8 Supercars is coming to Townsville in July 2009. Stakeholders in the V8 Supercar championships were buoyed yesterday by news the State Government and Townsville City Council had agreed on financial terms to build a multi-purpose event precinct at Reid Park which will include a pit building and 2.8km track formed partly on the existing roadways of Boundary St and the Causeway.

Work is expected to be underway by late August or September.

Townsville Mayor Les Tyrell was confident councillors would approve the council's $4.97 million contribution to build the Reid Park precinct when it meets later this month to vote on the proposal. He hoped the vote would be passed easily.

"I think the councillors are happy with the explanations that have been given to us," he said.

"They have seen the support from the Federal Government and State Government. I would hope the council pass that easily when it comes to the meeting."

He said council's $4.9 million investment would be repaid many times over in terms of the physical infrastructure available for festivals and events throughout the year, while the race itself would be a huge boost to the economy. Cr Tyrell said the council's ongoing support was limited to in-kind services such as waste collection.

"There's no risk here for ratepayers," he said.

"We are sitting with an investment that we really have to pay very little for."

The V8 Supercar Australia championship series operators have been in the city this week meeting with the council and finalising designs for the track.

V8 Supercars Australia chairman Tony Cochrane said he was buoyed by the funding agreement. The organisation had been pursuing an event in Townsville for five years.

"We addressed the council (on Thursday) and I think we answered every question they came up with," Mr Cochrane said.

"I'm very confident."

He said V8 Supercars had a massive fan base in North Queensland and believed the event could attract 50,000 people a day, or 150,000 over three days.

To opponents, Mr Cochrane said the supercars would be no more noisy than trucks which used Boundary St daily. For those not interested in motor sport, there would also be the benefit of the revitalisation of Reid Park, an undeveloped area which had been the site of a former council tip.

"It's going to be a huge revitalisation of this area of Reid Park," he said.

"It will give the people of Townsville a facility they can use all year round – a world-class park and facility."

He believed the upgrade would boost property values rather than reduce them as had been suggested by some opponents.

He said values had doubled at Albert Park in Melbourne after the upgrade of what had been a messy area and a down-market suburb. Mr Cochrane said the event would be held annually for at least five years and cost in the region of $11 million to stage.

The State Government had committed to provide $2.5 million each year for five years.

The remainder of the cost would be provided by V8 Supercars Australia which would gain revenue from ticket sales, sponsorship, corporate sales and rights to fees for merchandising, catering and television.

"The risk is totally at the feet of V8 Supercars Australia," he said.

The race teams had budgets of anywhere between $5 million and $12 million raised through sponsorship, he said.

While ticket prices for the Townsville event had not been released, general admission for the Phillip Island event at Melbourne had been $55 for Sunday. Entertainment is usually provided on the evenings of the race weekend.

At the Adelaide event, acts included in the race ticket prices included Sneaky Sound System, Powder Finger, Shannon Noll and Santana.