I know, most of you think all I do is complain that there isn’t enough to do in this town. Yet, with the city’s single biggest event—the San Jose Grand Prix—coming up this weekend, I am just a little lukewarm on the whole idea this year.
Before all those Grand Prix promoters (I was one of them in the past) jump down my throat, let me explain (I know how much you all like to give me the benefit of the doubt). It’s not that it isn’t a cool event or that it isn’t fun, but I believe that maybe in the beginning, the fun of it was its novelty. I mean, actual Champ race cars flying down the streets of San Jose IS pretty cool. However, after attending the races, walking around in the heat and trying to sit down or get a drink somewhere along the track, I am wondering is it really that much fun?
For fear of sounding like a snob, maybe the way to go is to spend your day inside one of those air-conditioned and covered suites with friends. Then, of course, the event is a great background for socializing. But if you aren’t one of those lucky people, is walking around in the hot sun or sitting in a bleacher seat that makes you feel like you are a bag of popcorn in a microwave really the way to go? I have done the tour of the pit, watched from an office building and walked around the track during the race to people watch. Haven’t I done it all already?
I am not saying the Grand Prix isn’t worthwhile, though many might disagree because of the money it costs the city to host it, but is it really a “can’t miss” event? Maybe I am not viewing this in the right way, but this year, instead of forking over all that money for tickets, I think I might skip the Grand Prix for a nice day at the beach.
Unless, of course, I get an invitation to one of those suites….
SG, people seem to be perfectly willing to sit in bleachers in the hot sun to watch baseball. OK, maybe the sun isn’t always that hot in SF, but you get my drift. If people like something enough, they’ll bake in the sun to be spectators.
If I heard right, this is the last year for the subsidy. The city needs to make this a sink-or-swim thing going forward and I think Reed will be the guy to say so. No more handouts. Either Taylor-Woodrow/Champ manage without help or they don’t put on a race here anymore. I think we taxpayers have thrown enough money in their direction and pulled up enough trees on their behalf already.
Like yourself SG, I attended the first GP but won’t be in attendance at this years event…life changes drastically when you have a one-year old and a yard that’s in dire need of landscaping. But for the city that I love sake, I hope the GP is a huge success. It’s one of the only times of the year that our city center is tranformed from a near ghost town to a bustling destination (imagine if our light rail trains were packed like the GP weekend on a regular basis). Anyhow, like TP in DT said, here’s hoping everyone going downtown this weekend will have fun under the gorgeous San Jose sun.
I believe the City did most of the right things in seeking to build a connection to the race, but it isn’t gaining any market traction. It is far from the biggest thing in downtown. Restaurants sit empty, garages don’t fill, traffic is a mess and other events are effected for weeks, and in the end no one is making any money or prestige off it.
It is a sleepy event that happens to make a lot of noise and creates a lot of interruption. For the City’s part, good effort for the Race’s part, bad execution and a mis-read of the local market. To quote a local radio host, ” Nobody cares.”
The novelty (if it was ever there) has worn off. The daily disruption for those of us who live here is not worth it. Different streets closed every day with no signage or detours marked—not very visitor friendly.
I believe the organizers still do not expect to make money this year—and I don’t think they are sure when they will make money. I don’t think Taylor-Woodrow is even involved this year or if they even exist (they may have been bought).
Many businesses to not benefit from the race due to the street closures and many of us locals just avoid downtown for those weeks of disruption. Doesn’t seem worth it for a 3 day event that doesn’t make money.
I hope the Grand Prix, Jazz Festival, Cinco de Mayo and Mardi Gras attract 600,000 people each to downtown. I like when people come from the cental valley, young people, lots of young people and alcohol. Society breaks down, police working overtime, getting injured, gangbangers arrested. My life is so empty, I love turning on the tv news watching riots in the streets and politicians making speeches about calm, courage and compassion. As you can imagine I’m loving this Iraq/Bush fiasco and garbage-in-Oakland/Dellums problem. It will be sweet if some of the champ cars crash this weekend.
Mayor Reed stated yesterday on KLIV that he would support $600,000 Grand Prix tax subsidy next year since
a) brings $600,000 taxes to city – Do we get $600,000 from GP taxes after 3rd change (150,000 to 120,000 to 83,248 ) attendance revision and economic impact from $42 million to $23 million to ? (probably less $5-10 million )
” However, attendance was visibly diminished from 2005. Organizers initially announced an inflated 160,000 but submitted the figure of 83,248 paid customers to the city council. “
” Mayor Chuck Reed ….. pledging to continue underwriting the police and security expenses. Reed figures the sales tax and hotel tax money created by the race pays for those expenses. That makes it essentially a break-even situation for the city.”
What is $$$ free city police and security expenses ?
2) Why do other Grand Prix cities give zero or smaller tax subsidies than San Jose? Do they know GP will take zero or less and SJ does not ?
“Kevin Magner, city coordinator for the grand prix. Since then, the race around Denver’s Pepsi Center arena has been run with private money, and the city estimates it’s generating $26 million in local spending.”
3) Why has Grand Prix / Canary Fund charity not fully accounted to Council and taxpayers?
How much went to charity vs organizers? What are real jobs and tax numbers?
4) Is GP best use of our tax dollars? When will tax subsidy stop ( next year, 2009, 2010 )?
What about $300,000 in 2008, $150,000 in 2009 then $0 ?
#4,5,
You both make good points that I wasn’t thinking of. My wife and I wanted to take a good friend to E&O Trading Company for dinner this Sunday evening. I reminded her that the GP was this weekend; we’re now headed for Steamers in Los Gatos. I wonder if this scenario will be played out many more times this weekend? And what will all the future high-rise residents think of the GP (if it’s still in existence)? Anyhow, here’s hoping E&O is packed with Champ Car enthusiasts!
Earlier this week we read that the attendance figures for last year’s race was originally reported to be 150,000. The figure was later adjusted down to 120,000. The “real” number was 83,000 or so.
This is a clear cut example of the need for Reed’s Reforms. If you want a public subsidy you must guarantee that there will be a “real” return to the city.
Quick note on the Soccer Stadium. Will the facility have a roof on it? How else can you put such a venue next to an international airport? Anyone have the answer?
pete campbell
Another example of the welfare state in San Jose. All the VULTURES are circling to get their FAIR SHARE. Grand Prix PARASITES, preservation LEECHES, MHP JACKALS, union SPONGES, developer DEADBEATS, etc.
Meanwhile, the taxpayers will be wearing tattered rags, eating crumbs, and living in cardboard boxes in St. James Park.
George Berlin
8 – I, too, hope E&O and others do great business. Unfortunately, they probably won’t, so how much longer do we subject ourselves to this expensive disruption? And for what? Since the organizers seem to specialize in putting out phony numbers, we don’t really know just how bad it has done. We do know that if it had done well they wouldn’t have to keep feeding us bad information that they keep changing.
This is the 3rd year for the race. Three strikes and your out. So long GP, it was nice knowing you.
#9 Pete, good point about real numbers. It is like creating people who really don’t exist. Who in their right mind would make up a bunch of phony people to further their agenda?
Sincerely,
Todd and Dennis, Trent, James, Frank, Jonathan, Henry, Ted, Jason, Edward, Kenneth, Kent, Kevin, Ken, Kirk, Michael, Reginald, Tony, Robert, Richard, etc., etc., etc………………………..
So Denver has a GP also? Where else do they have these? Is the fact that I haven’t heard of another Champ Car race anywhere other than here indicative of how under the national/global radar the Champ Car events are? SJ is NOT getting that much exposure out of this raw deal, and that should not have been the motivation for throwing money at it in the first place. Is it even televised on any other outlet besides our own (well it used to be) channel 11? Let’s cut our losses and those of downtown businesses NOW and send these guys packing for good after this coming weekend.
What Bozo is responsible for bad 2006 Grand Prix attendance numbers – 1 year late?
What happened: purposely overstated attendance numbers, can’t count, or incompetent? All 3 are bad for taxpayers and Council
So Single Gal. . . I guess that last line in your posing makes S J I your new search engine internet service for a date? If it pans out, will you have to pay SJI a service charge?
I have to say that you are correct this is one big waste of money been once and that was Enough for me. I work downtown and every year I dread going to work b/c of the mess it creates.
I want to say that with all the # bloating and Mr Jensens answers to the questions on this matter hopefully this will be the last time I have to go through this. When asked about this (no joke) He said that he was new at this and wasn’t sure how to count the numbers?
I guess we can throw him out of the boat how do these guys get these jobs.
So to everyone going this weekend have fun and be safe…
David D –
Are you too scared to ask me out?
I’ll be waiting for that suite invite….
SG great column. I think it’s time for the GP to go. My fiancé works in downtown and has a horrible time getting to and from work because the traffic is horrific. He just hates it when the GP comes to SJ. We live 15 minutes from downtown. It takes my guy at least an hour to get to and from work when the race is there.
I have to wonder who would pay that kind of money to see cars wiz by them once or twice, while sitting in the heat! Local businesses lose money because the parking, and access to their businesses are almost impossible to deal with!
And I don’t think taxpayers want to foot the bill for politicians and other fat cats to sit in those suites, while eating expensive food and drinking lots of booze. Sickening if you ask me. I say use the money to educate our children, fix the pools, improve community centers, or pave a street~
Why is San Jose paying $4-5 million when no other city does for Grand Prix ?
1) Las Vegas – “has agreed to spend up to $500,000 and event promoters will spend another $1.3 million to improve streets along the grand prix course. “” The event is owned by movie producer Brad Yonover and Dale Jensen, a venture capitalist from Phoenix who owns about 25 percent of baseball’s Arizona Diamondbacks and part of the NBA’s Phoenix Suns.”
http://sports.espn.go.com/rpm/news/story?seriesId=5&id=2525080
2) San Jose – 2005 – The Office of Economic Development negotiated a five year
agreement that provides for $2.5 million in privately funded infrastructure expenditures …for the race.. In addition, the San José Sports Authority will make an additional $350,000 in infrastructure investments
http://www.sjeconomy.com/publications/sbnewsletter/sb_newsletter_apr05.pdf
2006 – The $4 million subsidy from the city covers such things as police and fire department presence as well as some roadwork and about $1.5 million in cash to help with general staffing and other expenses. The Grand Prix’s annual budget is $10 million. The 2005 event raised about $700,000 for the Canary Fund, a cancer research charity.
http://www.bizjournals.com/sanjose/stories/2006/07/17/story1.html
3) Phoenix Dec 2 – Arizona Grand Prix Co Owner and development partner Bradley Yonover and co-owner Dale Jensen with Phoenix Suns and Arizona Diamondbacks also co owns Las Vegas and San Jose Champ Car race’s startup costs would be paid by his and Jensen’s organization, Arizona Grand Prix LLC. He later estimated those costs at $15 million. “This is on our dime, not on the city’s dime,” Yonover said. He also said the three-day race would generate more than $50 million annually for the city and have a total attendance of about 150,000. “We have a 10-year contract, so this would be every year for 10 years,” Jensen said.
Jensen and Yonover said they are not asking the city to upgrade downtown streets to racing standards. ……….., they will pay for the upgrades and later seek reimbursement of part of their costs from sales tax receipts from festivals scheduled as part of the three-day race.
http://urbanliving360.blogspot.com/2006_06_01_archive.html
4) Denver – “The mayor reiterated to me, ‘Do whatever you need to make this a successful race, but don’t spend a penny,’ ‘’ said Kevin Magner, city coordinator for the grand prix. Since then, the race around Denver’s Pepsi Center arena has been run with private money, and the city estimates it’s generating $26 million in local spendin
5) Talk of a merger between San Jose Grand Prix’s sanctioning body, Champ Car World Series, and the Indy Racing League, which sanctions an Aug. 25-27 event at Infineon Raceway in Sonoma County, shortens the time span San Jose Grand Prix organizers have to establish Silicon Valley as an urban racing destination.
Mr. Jantzen confirms widely-held speculation that a merger would most likely eliminate either the San Jose Grand Prix or the Infineon Raceway event.
http://www.bizjournals.com/sanjose/stories/2006/07/17/story1.html
6) Why are taxpayers giving millions taxes to race owners and Canary when we have many unfunded city needs?
The San Jose Grand Prix benefits the Canary Foundation, a non-profit supporting the early detection of cancer, and has raised more than $2 million for the organization.
http://denver.bizjournals.com/denver/othercities/sanjose/stories/2007/07/16/story1.html?b=1184558400^149010
SG-
If my wife and I were into the roar of fast cars and bucking the hords of downtown as we are in quiet coastal B&Bs;, we might well invite you up to watch the race, sip a little chard and sample a cheese or two. But I don’t think sipping chard with the AARP crowd is what you had in mind.
Love your musings on SJI. Keep up the good work (or play), and good hunting.
#23 George Leech wanting a response, cute. Well here goes. Ever here of the MONTGOMERY HOTEL? Who paid to move it? Who paid to restore it?
Actually, many street fairs and events like these become popular for the party it provides and the race is just kind of a background. Can’t we have the big party without the fast cars? What about dog racing?
Wondering
1) Why did San Jose paid $4-5 million and more millions in free city services while Phoenix & Denver – paid $0 and Las Vegas paid – $500,000 for Grand Prix ? Dale Jensen is co- owner for SJ, LV and Phoenix Are we that dumb or what ?
2) San Jose taxpayers gave $4.2 Grand Prix which gave $2 million to Canary Fund
3) After all millions wasted San Jose Grand Prix maybe canceled
25 – Got it. Looks like we agree.
19 – And your point is???
The City is forking out the big bux just so we can see ourselves on ESPN and millions of people around the world will know where San Jose is. Who cares?
Why doesn’t Paul Newman flip the bill,? He’s got more money then the City of San Jose.
We need to put that money to better use then advertisement.
SG,
Maybe you can get one of hundreds of free Grand Prix tickets given to Council member family & friends
If you know city insider ( Tom, Chuck ) you could get free tickets to city’s air conditioned Luxury Boxes with lavish food and open bar ( we know you like a drink now and then ) City will pay for it like 2006 $230.95 per person bringing the grand total of taxpayer-funded hospitality to $40,000.
Maybe you and Pierluigi ( Single Guy ) could go together and give SJI a party and insider report
http://www.metrosantacruz.com/metro/08.02.06/fly-0631.html
Anybody know what happened to the National TV Coverage? I can’t find it anywhere.
Heck where is the local TV coverage?
Isn’t part of the reasoning in financially supporting this event is because San Jose gets Positive National Recognition?
Just Wondering.
#10 George Berlin
What do you mean by preservation leeches ? I am not aware of any incident in the past 5 years where preservationists asked the city for any money. In fact, didn’t they try to donate $45,000 to the city to do an historic survey. Please site any examples in the past 5 years where preservationists asked for a free ride, or are you only talking out of your a** once again.
Ken, I don’t think there has ever been national coverage. Last year (and maybe the year before) Channel 11 carried it but if I recall correctly it wasn’t live coverage. Same goes for national broadcast if there was any.
It seems to me that the only coverage is on the local news channels. Hardly what I’d consider worth the cost to the city and inconveniences to the citizens associated with this event.
Mark,
I don’t think the GP (or the race results) even made the bottom line of ESPN (or ESPN news). Heck, even MLS has made bottom line ESPN status!
Main justifications of Grand Prix millions was increased national and international publicity for San Jose, local jobs and increased business for San Jose
Council told us many times about international and US audiences watching GP and that giving money to GP was less expensive and better than other publicity for San Jose but without TV coverage where is publicity?
You telling us we were lied to again about why Council gave millions for GP?
Attendance number were faked again, costs are understated, few jobs, economic impact overstated, Canary Foundation sponsored by Silicon Valley businesses / Chamber got $2 million from our $4-5 million taxes and we paid 6-8 times more than any other city for GP
Where are local business GP sponsors like other cities where little or no taxes used?
What did San Jose get, other than lied to again by Council, Downtown Business Association and Chamber who wasted more taxes?
Just wanted to let everyone know that I did find the Grand Prix on ESPN2 yesterday.
Enjoyed watching the race, and frankly the City of San Jose Promo as part of the broadcast commercials was ok.
I still question the benefit to the City of San Jose and its neighborhoods as to the City’s investment, but the race was enjoyable to watch on TV and it did give some national exposure to San Jose.
But so did the San Jose Sabercats winning the Arena Bowl yesterday on ABC. Good game and this is the third time that they have won the Arena Bowl title in 6 years and good exposure for the city.
The race was broadcast on ESPN and on ESPNHD.
I enjoy the GP more and more every year. Now I get excited when the city starts transforming the week or two before the race. I could really care less about people’s downtown traffic woes. If you work or live downtown, like I do, you account for that for a few days. It’s not difficult. There were open parking spaces within a block of the race this weekend and fairly inexpensive day rates at parking lots, ranging from $10 to $20. Much of the congestion was right around the track. A few blocks away, it wasn’t bad at all. If you exited onto Santa Clara Street from the freeway or came up San Carlos Street to get to the race, you probably deserve to sit in traffic.
I was referring to the 06 GP not getting ESPN coverage all; I also saw yesterdays race on ESPN2. I also watched the Arena Bowl Ken. “Mike and Mike” of ESPN’s morning radio show sounded surprized by San Jose’s current population…“Get this, SJ is the 10th largest city in the US.” I think to many across the country think San Jose is a city in the likes of Sacramento and Fresno. Anyone know how downtown restaurants/bars made out yesterday? Lastly, from a die hard Raiders fan and SJSU alumn…may you RIP Bill Walsh and thank you for the memories.
Anthony:
Yes, the results did make the bottom line on ESPN yesterday. However, I don’t think it helped the bottom line of San Jose.
After searching Google, I found that the 2007 San Jose Grand Prix was broadcast internationally as follows:
United States, ESPN-2
Canada, Global TV and/or TSN(check regional broadcast listings)
Europe, Eurosport, Motors TV, SBS
Australia, Channel 7
Latin/South America, Fox Sports Mexico, ESPN Desportes
From http://newsonf1.net/forum/viewtopic.php?p=60458
In previous years, U.S. subscribers to the
SPEED channel could watch the S.J. Grand Prix, and I believe could be seen internationally as well.
I think there are some real benefits that are hard to quantify. International coverage puts San Jose into the minds of people worldwide.
For example: People in the U.S. and worldwide hear of a convention being held in San Jose. Many people decide to attend conventions for the fringe benefit of travelling to someplace interesting. If they’ve heard of San Jose through television, then they may be more likely to attend the convention.
I am really sick of people going on with information they are not clear on… http://www.canryfoundation.org… get your facts straight before you whine…
37 – Just think how much they could raise for cancer research without the race. If they just put on a party they would be way ahead of the game.
It makes one wonder how an event that loses money and gets a $4 million gift from the city is actually able to have funds available for charity.
You do realize they will not open their books for public review, don’t you? We already know their attendance numbers are works of fiction. I hope their charity numbers are more reliable.
They have cancelled the Phoenix race. it will be announced on Wed. 8/30. I guess Yanover/ Jensen dont have the money, or not getting subsidized from Phoenix like SJ does. Totally on his dime? haha
#40, no source needed, we make these things up to suit an agenda. The rumors are handed down to us from the satellite offices in Anchorage, Alaska.
#39, what is your source for this information?