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CMI Announcement: Valley Motorsports Park: Operation Plan and Economic Benefit Package

By Club Motorsports
Friday, October 14, 2005

Club Motorsports Publishes Valley Motorsports Park Operating Plan & Economic Benefit Package

Section 1:  Operating Plan

General Overview

Club Motorsports is pleased to provide the citizens of Tamworth a thorough Operating Plan for Valley Motorsports Park and Economic Development and Benefits package.   Much of the information in these documents has been outlined in the state and federal permit applications.  The purposed of this document is to provide greater detail and clarification.  The sections: typical usage, sound levels, hours of operation, and monitoring is the same information we provided the Army Corps of Engineers during their permit review.

Club Motorsports’ Valley Motorsports Park is a non-spectator, private driving and instruction facility for amateur motorsports enthusiasts featuring a three plus mile European-style road course. Valley Motorsports Park is designed to provide a safe and enjoyable recreational facility for those who are passionate about performance driving and provides an excellent opportunity to improve driving skills through professional instruction.  In addition to teaching high-performance driving techniques, the Club will provide instruction in safe driving skills, accident avoidance, and adverse weather driving techniques.   The Club Motorsports business model focuses primarily on operating the road course and providing the associated amenities of a country club for our members.  Additional services will include the maintenance, exhibition, and operation of vintage and specialty motor vehicles.  In addition to offering the various driving schools to our members, Club Motorsports will also provide driving instruction to non-members.  The Club will conduct supervised amateur competitions and rent the facility to various amateur motorsports clubs for non-spectator activities.  When the Club reaches full membership capacity, the need for daily rental will be greatly reduced and/or eliminated.

Club Motorsports will build, maintain and operate a world-class motorsports country club.  We will not degrade or harm the environment, reduce property values, or negatively impact the public health, safety or quality of life in Tamworth.  To the contrary, Club Motorsports will provide numerous economic and social benefits to the community including significant tax revenue, job creation, and increased revenue for area businesses as well as several community programs.  Club Motorsports will provide drivers’ education and instruction and recreational enjoyment of the facility to Tamworth residents. 

The Valley Motorsports Park Operating Plan and Economic Benefits Package (including all attachments and support documents) is also attached on this page as a PDF for downloading and printing.

1.)  Valley Motorsports Park Typical Usage

As stated in our March 4th Joint Application, Club Motorsports will operate both a country club and a road course.  Likely operations at the facility can be categorized into weekday and weekend operations. 

Weekday operations can be summarized as follows:

•  Between 10 and 50 vehicles will be at the facility for non-competitive, recreational type activities, which will include high performance driver education, advanced driving skills training, high speed recreational driving, vehicle test and development, and vehicle manufacturer demonstration and training. 
•  We assume the majority of these vehicles will be street legal automobiles or motorcycles.
•  Participating vehicles will typically be driven to the facility although a few will be transported on trailers or in trucks.
•  Paddock A will be in use and Paddocks B and C are likely to be unused.
•  We assume that approximately 2.5 people per participating vehicle will be at the facility for a total of approximately 125 people per day. 
•  The facility will require approximately 40 to 50 employees to operate.
•  For each eight-hour day of use, it can be assumed that each vehicle will be on the course for up to two hours. 
Likely road course use will be approximately 5 to 15 vehicles at any one time.

A likely weekend day can be summarized as follows:

•  Approximately 100 vehicles (this is not vehicle trips per day) at the facility.
•  All paddocks are likely to be in use.
•  Each vehicle is likely to have one truck/trailer and one additional road vehicle.
•  We assume that approximately 2.5 people per participating vehicle will be at the facility for a total of approximately 250 people per day. 
•  The facility will require approximately 40 to 60 employees to operate.
•  For each eight-hour day of driving, we assume that each vehicle will be on the course for up to two hours.   

Please note:  The information outlined above is the basis for the sound report and analyses completed by CMI to date.

The course will also be equipped to address all necessary safety and maintenance operations.  The course will have its own emergency response (fire and extrication) vehicles and will contract with licensed companies to provide on-site ambulance and medical services.  In addition, the facility will have at least one tow truck on-site at all times.  All emergency response vehicles will have supplies on board to clean up oil or fuel spills that could occur in the event of an accident.  The number and staging location of the emergency response vehicles are set to maintain a target response time of 60 seconds to an incident anywhere on the course. 

2.)  Days and Hours of Operation

The planned season for the road course is April 15th through October 31st, subject to seasonal conditions, or roughly 200 total days of operation.  Valley Motorsports Park will be open seven days a week.  Normal operating hours will be from 8:00 AM to 7:00 PM weather and light permitting.  It will be the decision and discretion of the facility’s operations manager or road course manager to determine if the road course is safe for use during these hours of operation.   The road course will have no lights to support driving after dark.  Driving will stop once it’s determined that safe operation can no longer proceed under natural lighting conditions.
 
The exception to the above operating hours will be Sunday.  The Club will not allow any vehicles on the road course before 11:00 AM.  Club Motorsports will also enforce a mandatory “quiet time” during this time.  At no
time before 11:00 AM will vehicles be allowed to rev their engines or generate excessive noise in the paddock or garage area. 

3.)  Recreational Use during Non-Operating Hours and Off Season

While in-season and during non-operating times, the Club will allow access to the road course for its members and the residents of Tamworth for use as a bicycle course.  At certain times, this will not be allowed due to maintenance of the road course. 

After the Club closes the road course for the season, the Club will continue to operate the members’ clubhouse.   The use of snowmobiles will be allowed on marked trails that may traverse the site for the purpose of connecting other trails that are part of the state trail network; however, the Club will not allow access to the road surface.  Salt or other chemicals will not be applied to the road course in order to remove snow or ice.  The road course will not be plowed.  The use of the paddock areas is planned for winter driving instruction and techniques for our members, police departments and area high schools. 

The Club will allow access to the road course as a cross country skiing course and for snow-shoeing for members and the residents of Tamworth.  Due to insurance and safety reasons, the Club will not allow sledding on the grounds.  

4.)  Sound Levels

As stated in our March 4th Joint Application and January 18th Response Letter, Club Motorsports has shown through sound study analysis that the facility will not be a public nuisance.   The Project will offer a greater level of noise management and mitigation than is in place, or is even voluntarily provided, for the use of snowmobiles, ATVs, and OHRVs, which are accepted and planned for by the State and by the Town.  In fact, the use of these vehicles is being actively expanded and encouraged by the New Hampshire Trails Bureau, making the Project consistent with overall planning efforts for motorized recreation. 

The Project has assembled data on baseline sound levels and performed acoustic modeling, using appropriate criteria to protect residential receptors, applicable to exterior areas where frequent human use may be predicted and where a lowered sound level would be of benefit.    Noise abatement elements will be incorporated into the course design and operations to maintain predicted sound levels at or below the criterion level.  After the Project is built and in operation, if actual sound levels, as determined by monitoring to be performed by CMI, exceed the criteria established by the study, further mitigation measures will be implemented.

Since the filing of our March 4th Joint Application, Club Motorsports reviewed five (5) other facilities that either closely follow Club Motorsports’ business model, share similar topography or road course design, and have
receptors at or near their property lines.  These facilities include; GingerMan Raceway, MI, BeaveRun Raceway, PA, New Hampshire Motor Speedway (for club events only), Summit Point Raceway, WV, AutoBahn Country Club, IL, and VIRginia International Raceway, VA. 

Club Motorsports has refined our sound limits and corresponding sound model based on the information gathered from these facilities and the information is included as Attachment I.  In terms of sound levels and sound restriction limits, Club Motorsports will enforce the following:

•  The facility will follow the standards and requirements as outlined in Section 11 – Technical & Safety and in Section 12 - Sound Control of the Sports Car Club of America’s 2005 General Rules and Specifications for sections.  The SCCA is the recognized industry leader in amateur performance driving.  
• However, with respect to noise, the facility will enforce a lower sound limit than the 103 dBA Lmax at 50 feet that is listed in Section 12 – Sound Control of the SCCA General Rules & Specifications.  During all hours
of operation, with the exception of Sunday morning, all vehicles must stay at or below a maximum value of 99 dBA Lmax at 50 feet from the source.  The maximum value is instantaneous from a single source or a per
vehicle limit.
• Valley Motorsports Park will require vehicles to use mufflers or other devices in order to meet the above stated sound requirement.

Based upon research conducted at the five facilities listed above and using a weekend day usage (the highest usage period) at Valley Motorsports Park, the average sound generated during road course sessions (i.e. when vehicles are driving on the road course) will not exceed 92 dBA at 50 feet from the road course.   The 92 dBA average sound generated per driving session is based upon the range of vehicles on the road course with an Lmax value at 50 feet of 99 dBA (high range), 92 dBA (mid range), and 85 dBA (low range) respectively. 

In addition, the facility will not allow any road course activity before 11:00 AM on Sundays.  During this mandatory “quiet time” vehicles will not be allowed to rev their engines in the paddock or garage area. Thus the facility will generate NO noise, over background levels, before 11:00 am on Sundays.   Through additional research of other, like facilities and further sound modeling using the sound limits listed above, we feel the operations from Valley Motorsports Park will not create sound out of character with the existing acoustic environment in Tamworth.  

5.)  Monitoring Plan

Following industry standards and best practices as well as the SCCA Club Racing, General Rules and Regulations, Club Motorsports shall monitor all vehicles actively using the road course or paddock areas for compliance with all rules and regulations of the facility including sound restrictions or limitations.   All sound data from such monitoring will be kept on file and shall be made available to the town promptly upon request of the Towns’ Board of Selectmen. 

Sound monitoring will be conducted on-site by a member of the Valley Motorsports’ Park operations or road course team.  The facility will follow the SCCA regulations for monitoring sound levels (Section 12:  Sound Control) with all sound monitoring being performed in a manner consistent with then current professional measurement standards, methods and procedures.   Sound monitoring will run continuously during all road course sessions. 

In the event of a single source sound limit infraction, Club Motorsports will enact a “three strikes” policy.  For example, if a vehicle exceeds the sound maximum value limit, the vehicle will be notified and required to stop participation in the road course session, return to the pit or garage area, and make the necessary changes to the vehicle in order to comply with the sound limit.  Club Motorsports will measure and test the vehicles sound level for compliance in the pit and/or garage area and prior to re-admittance to the road course. 

If the vehicle exceeds the sound limit on a second occasion during that day, the vehicle will be required to return to the pit or garage area and make the necessary changes to the vehicle in order to comply with the sound limit.  Club Motorsports will again measure and test the vehicles sound level for compliance in the pit and/or garage area and prior to re-admittance to the road course.  If the vehicle exceeds the sound limit on a third occasion, the vehicle will not be allowed to operate or participate in any further road course sessions for the remainder of that day. 

Club Motorsports may include additional penalties or fines for violating the above sound limits or other road course operating rules, regulations, requirements, or for violating other Club policies.


6.)  Emergency Services        
 
At all times when Valley Motorsports Park is in operation, Club Motorsports will have a fully equipped and manned ambulance on the site. The operators of such ambulance shall be appropriately licensed under the
laws of the State of New Hampshire. 

Valley Motorsports Park will also be equipped to address all necessary safety and maintenance operations.  The course will have its own emergency response (fire and extrication) vehicles and will contract with licensed companies to provide on-site medical services.  In addition, the facility will have at least one tow truck on-site at all times.  All emergency response vehicles will have supplies on board to clean up any oil or fuel spills that might occur in the event of an accident.    The number and staging location of the emergency response vehicles are set to maintain a target response time of 60 seconds to an incident anywhere on the course. 

Club Motorsports will extend the use of its emergency equipment in the event of a Town emergency if requested by a Town safety officer.  If the Club’s fire or rescue equipment is required, all road course sessions will stop while the equipment is dispatched to assist the Town.

7.)  Lighting 

The road course will have no lights to support driving after dark.  The road course and other areas contained within Valley Motorsports Park will have lighting for safety and security purposes only and shall not be lighted for the purpose of allowing use between sundown and sunrise. 

Overall the lighting in Valley Motorsports Park:
•  shall be adequate for safety purposes;
•  shall not leave the site and create glare on adjacent properties;
•  shall be directed to the ground and be equipped with shields and reflectors so that it does not spread excessively; and 
•  shall consist of white non-sodium lighting. 

8.)  Insurance

Club Motorsports will continue to meet or exceed all federal and state requirements with respect to all areas of insurance coverage. Club Motorsports will carry the proper levels of insurance in all categories including but not limited too general liability, accident coverage, workers’ compensation, and property.   Club Motorsports will provide a copy of all insurance coverage to the Town and keep proof of insurance on file. 

9.)  Security

At all times, Valley Motorsports Park will maintain a secure and safe facility and prevent unauthorized use or access.  Valley Motorsports Park will be enclosed by a fence of a height and construction sufficient to preclude wildlife and unauthorized persons from gaining access to the road course.  In addition, Club Motorsports will provide twenty-four hour security with special emphasis placed on after-hour security in order to protect the property and our members’ vehicles.  

10.)  General Property Maintenance

Club Motorsports will be a world-class motorsports country club and the grounds and buildings will be maintained in the highest standards. Club Motorsports will not allow the accumulation of trash or garbage on the property.  Club Motorsports will be responsible for the collection, removal and the proper disposal of all trash, garbage, and any automotive related items (tires, drums, etc) originating at Valley Motorsports Park at our own expense.

11.)  Compliance with All Laws & Regulations

Club Motorsports will operate our facility in compliance with all applicable laws and ordinances.  As we have shown through the permit process, Club Motorsports will follow Best Management Practices regarding the permitting, construction and operation of the facility including storm water management and the storage and handling of petroleum products.  Club Motorsports will obtain and maintain all necessary permits, certificates, and other authorizations needed for the construction and the operation of the facility. 

12.)  Administration and Inspections
 
Club Motorsports will work closely with the Town through the Board of Selectmen or its representative with respect to the execution of this plan.  Club Motorsports will agree to administrative inspections of the facility
by authorized agents or representatives of the Board at reasonable times to ensure the compliance with the provisions of this plan.

13.)  Construction or Performance Bond

Before construction of the road course commences, Club Motorsports will provide to the Town a copy of the construction or performance bond.  The construction or performance bond will be required by Club Motorsports and carried by the company awarded the construction contract.  The construction bond or performance bond will ensure completion of the project once construction begins.  Club Motorsports will require this type of bond for each phase of construction.  This bond provides the Town protection for the health and safety of the citizens of Tamworth during each construction phase. 

Section 2:  Overview - Valley Motorsports Park Economic Benefit Package


Valley Motorsports Park is expected to benefit the Tamworth community and its economy in several ways.   Following is an overview of these economic benefits, from creating new jobs and substantial new tax revenue, to the development of funds to benefit students and the community at large.

To understand these projections, it is important to understand the amount of time and money that has been invested into Valley Motorsports Park’s development.  We have meticulously planned Valley Motorsports Park to be as sensitive as possible to the environment during both construction and operation.   We have taken more than two years and more than 6,000 man-hours to plan and design our facility. The current road course layout is the result of over fifteen design, development, and engineering iterations.  These various layouts have taken into account the terrain, while attempting to minimize impacts to the environment.  They have helped us develop efficient construction plans, and design a system to move water off the facility in an environmentally friendly way.  While we have spent more than two million dollars alone on designs, the entire project is estimated to cost approximately $30 million to complete. This project is without question the most rigorously planned, reviewed and detailed development of its kind in Tamworth and possibly in the State of New Hampshire.

Valley Motorsports Park has been heavily analyzed and engineered to meet stringent permitting requirements at the State and Federal level, as well as to ensure the long-term financial viability of the project. The design of the facility has been scrutinized by many highly competent engineers and scientists and has passed all of their requirements for a thoroughly designed project. 

The economic impact on the Town of Tamworth will be direct, positive, and in many ways will enhance the character of the town.  Club Motorsports will be the largest employer and taxpayer in town, increasing the Town’s tax base as a whole.  Our members will visit Tamworth and the surrounding areas and frequent local area businesses.  Valley Motorsports Park will not require Town services during operation and therefore we will not be a burden on the Town’s resources.  One of our primary reasons for choosing Tamworth is the scenic beauty of the area.    It would be counter-productive from a business and environmental perspective to endanger the scenic beauty of the site that Club Motorsports has chosen.  Club Motorsports has gone above and beyond regulatory requirements to ensure that the character and charm of the community, the summer theatre, the Remick Museum and Farm, and White Lake State Park and Campground will not be negatively impacted by our operation.

Club Motorsports will have a direct and positive impact on the inhabitants of Tamworth in the following four ways.  First, Club Motorsports will provide much-needed jobs.  Second, Club Motorsports will pay significant property taxes to Tamworth.  Third, we anticipate (based on experience with other private motorsports country clubs) that property values in the town will be maintained or increase slightly as a result of construction of the facility. Fourth, Club Motorsports will have a positive impact on local area business, increasing their sales revenue. 

1.)  Tax Relief

Club Motorsports will pay significant property taxes to the Town of Tamworth.  While the specific amount of taxes is yet to be determined our current estimate is an annual tax of $382,000.  This would fund a 7% increase in the budget for the Town of Tamworth, resulting in a positive impact on the Town’s ability to provide services for the residents of Tamworth.  Alternatively, the tax revenue generated from the facility could be used to reduce the tax burden of Tamworth homeowners.  And as mentioned previously, Valley Motorsports Park will not provide a burden on the town’s infrastructure as we will provide our own services.   This means that the estimated annual tax revenue generated by our facility will be a NET benefit to the Town.

Each town in New Hampshire has a slightly different process for calculating the value of acreage and the value of improvements and buildings on parcels such as the Club Motorsports property.  The Town of Tamworth’s method is based on the sales price of commercial properties in the area of Routes 25, 16, and 41 and the ratio of frontage area to inaccessible acreage. In order to simplify what can be a complex and often subjective process based on these and other factors, Club Motorsports assumes that our tax payments will be based on the purchase price of the land and the value of the improvements made to the property.

Club Motorsports plans to invest $15MM for the land and improvements in Phase I, and up to a total of $30MM to complete all phases of the project. The current property tax rate in Tamworth is $17 per thousand of value.  Using this figure multiplied by the capital investment that Club Motorsports plans to make, the approximate annual tax payments to the Town of Tamworth would be between a high of $510,000 (9% increase) and a low of $255,000 (5%). 

The mid-range of the above limits is $382,000.  It is important to note, that even at the lower end of this range, Club Motorsports will be a significant contributor of tax revenue to the Town of Tamworth. In fact, Club Motorsports will be the single largest taxpayer in Town, well ahead of the present largest taxpayer, Public Service of NH, at $118,536.  Additionally, Club Motorsports will not directly impact the town in other areas that normal properties or typical business do because we will operate a self-sufficient facility.

2.)  Job Creation

It is anticipated that Club Motorsports will be one of the largest full-time employers in the area.  While the road course is scheduled to be operating from April through October, we will require a slightly reduced staff during the winter months to maintain the member’s clubhouse and restaurant.    Our jobs will pay competitive salaries or hourly rates, depending on the nature of the position.   Many will be full time, while some will be part time.   The additional jobs created by Valley Motorsports Park do not include any related jobs during construction, or additional benefit to local businesses that could become vendors to Club Motorsports and its members.

With the completion of Phase I of the project, which includes the road course alone, Club Motorsports will directly employ an estimated fifty (50) individuals to maintain operations.  These individuals will fill the following positions: facility management, sales, marketing, operations, fire and safety personnel, automotive technicians, accounting professionals as well as maintenance and field personnel.  Club Motorsports has committed both publicly and privately that it will give qualified Tamworth residents first priority for open positions, and then look for applicants in the surrounding towns.  With the completion of Phase III (members’ facilities), we anticipate employing approximately one-hundred (100) individuals, when we are fully operational.

What will be the overall value of these new jobs?  A recent study conducted by the Lakes Region Planning Commission states that Club Motorsports’ wages would be higher than the average salary in the Tamworth area. It is important to note that, in addition to competitive wages, many of our available positions will include full or partial benefits for our employees.  It is also noteworthy that during several job fairs conducted by Club Motorsports, more than  350 individuals either attended a job fair, or submitted resumes for future positions.  This statement alone indicates the overwhelming demand and need for quality jobs in Tamworth.

Currently, Club Motorsports has done business directly with a number of companies located in Tamworth and the surrounding communities. To date, we have spent over $100,000 with local area businesses. 


3.)  Property Values & Other Area Businesses

Based on market research at other similar facilities, we anticipate property values in Tamworth will be maintained or increase slightly as a result of Valley Motorsports Park.  In the same manner that ski and golf enthusiasts purchase second homes near to their hobby, sports car enthusiasts will do likewise.  Already, as a result of Club Motorsports' permit applications and its stated intent to develop the facility in Tamworth, several local landowners have offered to sell property in adjacent areas at rates ten times their previous value even before Club Motorsports has begun construction.

Research was conducted by Club Motorsports at two existing motorsports country clubs built in similar towns: GingerMan Raceway in Michigan and BeaveRun Motorsports Complex in Pennsylvania.  These facilities have directly contributed to increased sales for existing business, job creation and new business growth and an overall increase in property values. In the respective towns, we interviewed local politicians as well as a number of individuals serving in the local Chamber of Commerce in these communities.  All those interviewed cited the tremendous value the facilities have brought to their respective towns with the primary benefit being increased sales for local area businesses and jobs creation.  

4.)  Valley Motorsports Park Safe Driving School

Valley Motorsports Park, either independently or in cooperation with automotive clubs (for example, The New Hampshire Automotive Dealers Association and/or the BMW White Mountain Chapter) will develop and execute a safe driving program for New Hampshire teenagers.  This program will be dedicated to helping new (and experienced) drivers learn important driving techniques, including adverse weather driving, accident avoidance, and emergency driving response training in a controlled and safe environment.  The Safe Driving School program will run in addition to our Performance Driving Instruction (PDI) program. 

5.)  Club Motorsports Educational Fund (CMEF)

Each year, Club Motorsports will provide $5,000 in scholarship money for deserving area students who want to continue their education.  Club Motorsports will work closely with the local high school and other organizations when granting the scholarships to these students.  In addition to advancing college educations, this fund will also support additional education and training in various automotive related fields of education and study.

6.)  Tamworth Development Fund (TDF)

In addition to the taxes and benefits detailed above, Club Motorsports will contribute money to an economic development fund to provide additional financial support to the Town.  Club Motorsports pledges to contribute 5% of its net after tax income, up to a maximum of $100,000 per year, to a Tamworth Development Fund.  This Fund will be administered by an independent committee comprised entirely of Town residents appointed by the selectmen.  The committee will have sole discretion over the disposition of the assets accumulated in the Fund.  Some potential uses for these assets might be Town budget items, emergency aid for needy residents, or the acquisition of conservation easements.  The only requirement will be that Fund expenditures benefit the general population of Tamworth.

At this stage in the company’s development, it is difficult to pinpoint the exact amount that will be contributed to the fund annually.  However, based upon company projections, which we believe are attainable, theannual contribution would reach the maximum $100,000 by the fifth year of operation.

The Valley Motorsports Park Operating Plan and Economic Benefits Package (including all attachements and support documents) is also attached on this page as a PDF for downloading and printing.


 

 


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