Take the Cal Club approach and get a loan from the SCCA. Form a
private company (you can still sell shares in Utah) and go for it.
That's how the multi-million dollars were raised for thunderhill &
Once you've got the income potential and fiscal feasibility questions
out of the way and you're seriously considering offering shares of a
company which is to own or lease the track, be SURE to comply with the
federal and state securities laws. Pretty important because if all
doesn't go well and investors lose their money, if you haven't properly
complied, the officers and board of directors can theoretically be
personally responsible to make up the losses. It's all great fun at the
moment, but I've seen these things get pretty messy.
The laws aren't hard to comply with, and you shouldn't consider this as
a major impediment to pursuing the project, but you should certainly
consider the issue before you offer shares of the track company to
Can't imagine you don't have a lawyer or two among your local club
members - recruit them for their advice on how to comply. If you're
only offering to a limited number of residents of Utah, you're likely
past the federal securities law hurdles (intra-state exemption). Utah,
like most states, likely has its own regulations for offering of shares
of a company (whether public or private) in the state. There are
usually limitations on the number of people you can offer (not sell,
OFFER) shares to and dollar limitations as well. Beyond those
limitations, a registration of the shares is required - read that as
expensive, time consuming and a big wet blanket on all the fun. Ask
your lawyer friends about the "Blue-sky" laws in Utah - they'll know
what I mean.
> -----Original Message-----
> From: R.M. Bownes III [SMTP:firstname.lastname@example.org]
> Sent: Monday, October 05, 1998 11:55 AM
> To: 'Mark J Bradakis'; email@example.com;
> Subject: RE: Let me have it!
> Take the Cal Club approach and get a loan from the SCCA. Form a
> company (you can still sell shares in Utah) and go for it. That's how
> multi-million dollars were raised for thunderhill & ButtonWillow (?)
> If you can show potential customers and a long term lease, a business
> of that size is not out of the question for a private company with
> contracts for use. Let's look at some potential income:
> Rates: Schools & Regional Races $2,500/day
> Autox $200/day
> Testing $150/day/car
> SCCA Regionals: 2 two day regionals
> SCCA Driver's School: 1 two day event
> Vintage Event: 1 two day event
> Marque Club Events: ?
> Autox: How many?
> Testing: ?
> So, you've got at least $20K/year in income. You'll need to get pretty
> creative beyond that, but if you can come up with $50K/year of income,
> bet you can get it bast the banks. Local Economic Development
> would be a big help as well. Stress the potential income from hotels,
> services, temporary jobs (you are going to pay your flaggers, right?
> etc. And at least one full time manager...
> Oh, and there is always the income from the 2001 VTR Convention....:-}
> The big expense is insurance for the company. I don't know enough
> that, but some work by the Utah region with Denver would probably go a
> ways toward answering the question.
> Or go out for private investment $$$. I'm in the process of doing that
> It's remarkably easy.
> > -----Original Message-----
> > From: Mark J Bradakis [mailto:firstname.lastname@example.org]
> > Sent: Friday, October 02, 1998 3:40 AM
> > To: email@example.com; firstname.lastname@example.org
> > Subject: Let me have it!
> > Don't just site there, get up from that computer and send me all
> > money NOW!
> > Hmmm, that approach seems a bit too direct. Perhaps I should
> > Apologies to those of you on both lists who see this twice.
> > Anyway, I live in Salt Lake City, Utah. A modest number of
> > race drivers
> > also call this valley their home, whether they flog some
> > ancient brick of
> > pig iron around the track, the latest mega-buck trick SCCA
> > ride, or even
> > a well-tuned two wheeler. I guess a three wheel Morgan would
> > fall into
> > the "ancient slab of pig iron" group. When these folks want
> > to go racing,
> > they have a lot of choices. They can tow over the Rockies
> > for a day to get to
> > one of the tracks in the Denver area. They can head for the
> > scorching deserts
> > of the Southwest, Phoenix, or perhaps Las Vegas. Load up and
> > strike out for
> > Portland, Oregon, or haul over Donner Summit on their way to
> > Sears Point or
> > Laguna Seca. If you live in Salt Lake and you want to race,
> > you have to face
> > at least a day's tow, no matter the direction. What fun.
> > I spent this past weekend working corners, sweeping the pits
> > and generally
> > fussing about at a "race track" a mere 42 miles from my
> > house. A dozen or two
> > folks, including a handful of Legends, came to play for the
> > weekend. The site
> > is close to a real race track, but no, uh, well, maybe saying
> > "cigar" just now
> > isn't the most politically correct phrase. The place needs
> > work. What it was
> > is a test track that the army built a few years ago. Out at
> > the Tooele Depot
> > the D.O.D spent a ton of money building a new truck, tank,
> > etc. repair center.
> > Then they decided they didn't need it, and now the facility
> > is in private
> > hands. The developers can build houses and condos like
> > crazy, but they have
> > no idea what to do with a race track.
> > But it isn't quite a real race track just yet. The layout is
> > your basic oval,
> > a little over a mile long. A road bisecting the middle of
> > the track provides
> > a chicane of sorts where it meets the oval, so there is at
> > least a second or
> > two of turning the wheel to the right. If you have a
> > mechanical failure or
> > run out of gas in the wrong spot, there is no place to go to
> > get out of
> > traffic. Some of the corners have a serious dropoff at the
> > edge of the
> > pavement. The railroad tracks over there are a bit too close.
> > There is hope. What the place needs is some safety work,
> > more asphalt here
> > and there at a minumum, a few barriers around the 12 foot
> > deep tank fording
> > pit and some of the power poles and other such obstacles in
> > the way. The
> > minimum estimate is about $80,000 to $100,000 dollars to get
> > the site ready to
> > run SCCA sanctioned events. And of course twice that amount
> > would go a long
> > way to making the place enjoyable, and not just bearable.
> > For those of you still reading, here's where you come in.
> > I'm looking for
> > ideas to raise funding. The new owners of the place would be
> > happy to lease
> > the site to a group that deals with racing. Intermountain
> > Vintage Racing
> > would love to develop the place, but we are way fetchin'
> > broke. So close,
> > and yet so far. Any ideas on how to raise a hundred grand or
> > so? Perhaps
> > set up a public corporation, and try to sell shares, giving
> > free track time
> > to purchasers based on their ownership stake? Selling stock
> > just in Utah
> > would be fairly easy, I did it once many years ago, sort of.
> > Going national
> > might be necessary to adequately fund the place, but a lot
> > more hassle in
> > terms of interstate trade regulations. What other options do we
> > Say, anybody want to buy an autocrossing Spitfire for
> > $125,000? I'll throw
> > in a set of fresh Hoosiers to replace the ones I corded at
> > the VTR convention!
> > mjb.