Race City’s uncertain future appears to be a little brighter today after owner Art Mackenzie reported he had reached a tentative deal with City Hall to keep the motorsport facility open for another two seasons. 

The City administration reported to Council during Monday’s meeting on progress in negotiations with Mackenzie over a new lease.  The discussions were forced by a Council motion last September that passed by a narrow 8-7 margin. 

Ald. Ric McIver, mover of that motion and champion of Race City, says that because the matter is still in camera he cannot discuss details of the agreement. But Council liked what it heard and unanimously voted to enter into a lease with Mackenzie based on the current terms of the deal.

“I am grateful that my colleagues supported this unanimously.  I’ll wait to see if the signatures get done, then it’ll be time to be optimistic,” he said.

Mackenzie says his agreement with the City is for two more racing seasons.  That means sometime in late 2011 or early 2012 the lease will end and the land will revert to the City. 

The original lease was for 25 years, with renewable options every five years, and ran until 2025.  The City claimed Race City violated the lease terms when it was late with a payment by several weeks back in 2000.  Mackenzie claimed the lease was valid because the City accepted the late payment and cashed his lease payments every year thereafter.  Mackenzie had already filed a law suit against the City that was suspended last Fall pending the outcome of the lease negotiations.

One of the key provisions of the tentative deal is that the City assume all environmental liabilities associated with the property.  Mackenzie estimates this will cost approximately $1.5 million, but he cautions that is an estimate only. 

Two years of racing is not enough time to justify any significant capital investments in the aging track to bring it back to its former glory.  Since opening in 1984, Race City has slowly declined and now needs work on both the tracks and the other facilities.

“We need to have the facility maintained to the point where you can continue to operate it.  But it is tough to work on a two year schedule and say we can put a lot of money into it,” Mackenzie said. 

Edouard Kassianoff of the Allen Berg Racing School was happy to hear the track will be around for at least two years.  Allen Berg is one of only three Canadians to drive Formula One and after retiring from the Mexican circuit he set up his racing school in Calgary.  The school uses high tech Renault open-wheeled racers to teach professionals and amateurs. 

Kassianoff says that without Race City the school will have to move to Edmonton or, more likely, Mission, B.C.

“In terms of the technology in our cars, we’re probably the best in Canada,” he said.  “We’re the premier racing school product in Western Canada.”

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