Categorized | SE Calgary

ART MACKENZIE, RACE CITY OWNER, EXPLAINS LEASE DISPUTE WITH CITY HALL

Art Mackenzie, left, in conversation with SECN publisher Markham Hislop

Art Mackenzie, left, in conversation with SECN publisher Markham Hislop

Several years ago, the City of Calgary announced the lease on Race City, the popular southeast Calgary motorsport facility, had expired and the facility would be removed in 2010.   Art Mackenzie, the current owner of Race City, disputes the City’s interpretation of its lease situation. 

Closing Race City would have a very negative effective on motorsport in Calgary and the many businesses which rely on the track, either directly or indirectly, for their revenue. 

Both sides have been reluctant to discuss the issue. 

The City has hidden behind the Freedom of Information Act and flatly refused to comment in any way about any matters relating to Race City.  This includes even technical background reports upon which Waste and Recycling Services based its decision to use the Race City property to construct storm water retention ponds and other facilities for the Shepard Landfill.

Mr. Mackenzie had been more forthcoming, but found himself in a difficult spot because of the very real possibility he might have to sue the City in order to enforce the provisions of his lease, which he claims runs until 2025.  Mr. Mackenzie’s lawyer has, understandably, advised him to be sparing with the information he provides to the media.

However, in a candid exclusive interview with SECN, Mr. Mackenzie explains the background to the dispute with City Hall and the factors that will affect his decision as to sue or not sue the City.

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Highlights of the interview include:

Mr. Mackenzie’s allegation that City Hall bureaucrats are deliberately dragging their feet in negotiations with him because it suits their purposes

The apparent disorganization in the City’s corporate properties and buildings business unit, including losing documents pertaining to Race City’s lease

The damage done to Mr. Mackenzie’s business by City Hall’s decisions

There will be a full schedule of motorsport events at Race City in 2009 and how those events will be organized

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13 Responses to “ART MACKENZIE, RACE CITY OWNER, EXPLAINS LEASE DISPUTE WITH CITY HALL”

  1. Andrew Strong says:

    Is there any intention for Art Mackenzie to work with the calgary motor sports association to help put pressure on the city for a solution???

  2. Mark says:

    Good to see Art Mackenzie is still interested in trying to keep the facility.

    I was very disappointed when I heard about the 7-7 tie vote earlier.

    I will be running with 3 maybe 4 different clubs/renters this year for Race City, hope this facility can stay.

  3. Geeze says:

    ahhhh yes, MORE negative publicity..the good ol’ “poor me” we have grown to love!!…Good job, keep it up.. Let’s give even MORE people a reason to be discouraged about Race City..Way to go Art.
    Maybe instead of complaining about the City he should look at how he managed to destroy his business financially, piss off TONS of racers,let the place deteriorate, and LOSE sponsors YEAR after YEAR..,

  4. Mike Horner says:

    Markham,
    A good article, glad you are working on this file. It is a real shame that Council (read Mayor) is so closed minded to Race City and the value it brings to Calgary. It is one of, if not the most, heavily utilized facilities of its kind in North America, and generates tremendous economic activity likely on the order of $40 to $50 million per year. Council seems blind to this issue, and keeps the public blind as to issues and deliberations through the In Camera review they had of the matter, though we should recognize an even split on the extension vote, with the Mayor having the swing. Of course city staff want race city out, they can go ahead with their waste water treament (what a low value use), and put the rest of the site up for development, the real agenda. By the way, where is Calgary in terms of future looking waste handling, land fills are dark ages compared to modern practices employed in other major cities. Maybe this is a good opportunity for them to come up with new options for the future rather than cementing in old fashioned practices.
    Sadly our mayor seems quite out of touch with his electorate, yes he is smooth on the air, but look at his intransigence with respect to issues such as parking increases downtown, the footbridge folly, and tax increases. no wonder Mr Mackenzie is concerned about taking on city hall given the current administration.
    Thanks for being a voice, it is too bad we as a community are so weak in our profile such that there is no real rally behind this issue.

  5. Geeze says:

    It is one of, if not the most, heavily utilized facilities of its kind in North America, and generates tremendous economic activity likely on the order of $40 to $50 million per year

    Has this person above BEEN to Race City in the last 5 years?..have you seen the stands??, counted the cars??.. local racers use this facility only. The traveling series of various sanctioning bodies (oval side) are LONG gone..the track is too rough now for “big” cars to race on. People don’t travel here to watch either….MILLIONS??…maybe ‘A” million..over the last 5 years

  6. Stephen says:

    The city has no interest in Race City because it’s a privately owned business and doesn’t generate any revenue for the city other than taxes. The city would rather build skating rinks for millions of dollars.

    With the ring road soon to go right past Race City, what better exposure for a tourism facility does the city need?

    Race City does generate a huge amount of economic revenue. It’s not just the sanctioned races. Those have dropped off in the last few years but the weather also hasn’t helped. Race City is busy just about every day of the week during the summer. Racing only takes place on the weekends. The tracks are usually rented out on every other day. Lots of driving schools use the facility as well.

    As for upgrades, nobody will invest in a facility if there’s no long term goal or lease. Management can’t invest any money in the track when the money needed isn’t generated because of multiple big race rain outs. The Father’s day race is one of the biggest money makers for the track and for the last few years, the weather hasn’t co-operated. Can’t make money if you can’t have a race.

  7. Markham Hislop says:

    Geeze, in fairness to Art, he only took over last year as the sole owner. Much of the neglect is due to the inattention of the former owner, so I am told. Art does have plans to invest in new and upgraded tracks and facilities, but the uncertainty of the situation with the City has all but killed those plans.

  8. Jay Mageau says:

    in response to Geeze above, I am a traveling pro , and was invited to 1 or 2 major race events every year for the last 7 or 8 years. There were all kinds of other Pro racers at all of these events. Teams from Edmonton, B.C., Montana , Washington. … and more. These events, particularly the annual Fathers day race, were always packed with fans as well.

    Notable that on these race weekends you could never get a room at the Glenmore Inn because it was chock full of racers and fans.

    check your facts sir. Losing that track will not only destroy the local race scene – maybe forever- but all kinds of business like hotels, restaurants, parts stores , engine machine shops tire shops, paint and body shops, graphics places , RV Dealers, trailer dealers , ……… When I was in town I saw advertisements in the papers and on local TV about the events .. so there goes that income source for the media as well.

    I am based in Edmonton and losing that track will hurt the 2 dozen or so pro teams that regularly include Calgary as part of our regional circuit. ( not to mention the weekend warriors that travel to Calgary more often than we do)

    I suggest the Calgary city council look north in July and see what impact the IHRA Rocky Mountain Nationals has in Edmonton … maybe they will get envious and work towards doing something positive for there own community.

    Maybe if they look at Medicine Hat , Saskatoon , Mission BC, Kelowna, Ashcroft, Acton Montana, Spokane Washington, they will see these places all have thriving racing facilities. Why can’t Calgary compare to these places?

    In this case, it seems a lot easier to make something happen , than to go through the effort of destroying something that has been happening in your area since the early 60′s.

    Jay Mageau
    The Prospector funny car
    http://www.nitrofunnycar.ca

  9. Geeze says:

    Ben sold the track to Art in the 90′s. He hired Ray to handle marketing.. from there the decline began and got worse EVERY year after that. Art backed out from operations a few years ago, then Rome came in with a BIG boost of excitement and drive, but no money. Rome left cause he was also loosing money in a big way.. Re-Enter Art..

    if Race City had a lease to 2025 it would be gone well before that anyways. It has been on a steady decline since it was sold in the 90′s. Money was never invested then before lease issues, and now it’s using the “lease” as a scapegoat. it’s been 20 years for me there! I’ve seen every angle of that place, I love it to death, it has a piece of my life… but it is time to move on. All the honest people knew YEARS ago it was on a HEAVY downward spiral.

    NOBODY, I repeat NOBODY can repair that facility financialy even IF the lease was untill 2025. Stands, oval track, drag track, ETC. all need repairs. Some say “if we had a long term comitment”.. but ALL race city has had in the past 3 years is negative publicity!!.. if you had millions to invest in a downward economy would YOU pick a strugling business.. a PUBLICLY known strugling business???.

    the CORA group is amazing for the spirit they have in motorsports, but I don’t think they realize the scale they are operating on.
    Art had poor “race track” business skills, but had money, Rome had no money but he DID have the drive and marketing skills..Ben had both. ALL, yes ALL of them lost large amounts of money, even when times were good. Consider this.

  10. Stephen says:

    A poorly run race facility is still better than no race facility. Not everyone can afford to travel to another track. No track in north america is a perfectly run track with perfect conditions at every race and every racer is happy. We race wherever we can on whatever track conditions they can offer and live with it but we still need a local track to race at.

  11. Tony says:

    The roadcourse is rented (and has been) virtually every day and night throughout late spring, summer and early fall. You simply cannot get a higher utilization rate then that.

    The economic impact of losing that facility is large, difficult to quantify but it is significant.

    What ever your feelings are about Art – we (at least from a road course perspective) are extremely lucky to have the facilty and it will be a great loss.

  12. www says:

    Geeze whiz,your a joke where else in the city can a family go with out spending hundreds of dollars have you been to a football or hockey game lately my son and many more just like him have grown up at race city and love the place it gave me a chance to teach him respect of motor vehicles and gave him a new passion I wonder with all your negative words if you wake up every morning like that maybe try the other side of the bed,the main reason race city has had such a hard time is this on and off tactic from the city,another thing comes to my mind is geeze your name or are you hiding behind some some self givin handle.

    P.S DONT GIVE IN ART,TOO MANY DO!!!!!!!!!

  13. We loved your writing, please do keep it up!

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