All the talk about subsidies and too much money spent on the race will hit its peak as the Grand Prix rolls into town this weekend. But will this oppressive heat keep spectators away from a fun, novel event that brings more new people to San Jose than almost any other event we’ve had in our city’s history?
Last year, I had the good fortune to watch the race from an air-conditioned suite and a friend’s office building that overlooked the race track—in my eyes two of the only ways to view the race. Maybe my blood boils under my skin sooner than other people’s in the hot sun, but sitting in the bleachers in the heat staring at hairy men in tank tops while watching the Champ cars go by is not my idea of fun. Watching while drinking beer in the shade or a cool place with the cars as a nice background is. Who knows, maybe the weekend will involve catching a little David Lee Roth on the main stage. (Wow, a real B-list celebrity in our midst! San Jose really has come a long way.)
I will probably have lunch at O’Flaherty’s in San Pedro Square, which is a little off the track, and then maybe hit the Fairmont’s Grill Bar for ice cold beer, lots of people watching and some race action. You can be assured you won’t find me sitting in the bleachers watching too many cars not pass each other.
This year, I don’t know if I can handle the extreme heat for all three days, but I think the Sunday race is an event I will not miss. The bars and restaurants will be packed with people (like we always hope they are throughout the year) and, for a short weekend, we can put all the naysayers and critics to rest and just enjoy the Grand Prix for what it is.
Well, I’ll be far, far from downtown this weekend. I’ve no desire to deal with the crowds and the heat to see $4 million of my tax money pissed away. If all goes well, I’ll be showing around a buddy from the East Coast.
Ma, Ma, where is our park money???
Reed spent it in secret violating the Brown Act, hahahaa
I will be there and enjoying myself. Spending my money in San Jose instead of going out of town. I am happy our city isn’t quite as boring as it used to be.
Fortunately for me, I see a bigger picture than just a $4 million subsidy. It’s not about the Grand Prix in particular. The subsidy just brings to life the philosophical differences people have about the City’s budget policy. Just vote in November if you want change.
I can only imagine if the “Big Dig” happened in San Jose – you would all move out of state in disgust. I am just thankful BART isn’t going to come to downtown San Jose – bloggers here would complain everyday.
As a downtowner, I know that minor inconveniences of life and can deal with change. I sat in traffic today and I am not going to blow it up into some big catastrophy…if I did complain it would just show everyone that I don’t have a life.
Single Gal,
Good to see you back on-topic with what you know best, drinking and looking for men. Of course, from your writings it is easy to understand why you are still single. Now you are disparaging “hairy men”. In case you do not understand, men are hairy. Its called genetics. Of course, we could shave all over to fit your sense of fashion, but I’m not sure it would be worth the effort.
How would you like it if I posted that looking at overweight, out-of-shape, flabby women in tank tops, or women who commit the ultimate fashion faux pas, wearing a bra with a tank top, is not my idea of fun.
If you have these visual problems with men you need to wear “beer goggles”. They mostly work fine for these issues with women. Especially around last call.
Have fun at the races.
What a waste of tax money and an incredibly awful inconvenience for those of us that work downtown every day. It’s only Tuesday and the streets are a disaster. Streets blocked off. Lanes blocked off. Traffic is already a mess and the race doesn’t start until Friday. AND, we are subsidizing this disaster. And it doesn’t end on Sunday. It took more than a week to clear up the mess and restore the streets last year. The best thing about the Grand Prix is we know it will be such a total mess on Friday that we take the day off and golf.
ATT Park has this place in right field where you can watch three innings of baseball for free. Is there such a place along the race route where you can just take a peek then leave? The organizers owe each and every citizen of San Jose ~$4 from that subsidy anyway.
Pho Hoa,
You can watch for free at the south west corner of the track. I think the street was the interesection of Almaden Blvd and Ballback.
I noticed this last year while walking around the event. It is actaully a really cool point of sight. You can see the cars coming right at you, then slowing down to turn down Ballback Street.
Wear Sunscreen!
To paraphrase(was it President Lincoln?): You can please some of the people all of the time, you can please all of the people some of the time, but you can never please all of the people all of the time.
Whatever y’all do this weekend, stay well hydrated.
As a downtowner 20 years running, I am sick and tired of all these babies complaining how they’re “inconvenienced” by the detours, the blockage of streets and whatnot. The Grand Prix is a great thing for ALL of San Jose. (Yes, believe it or not, there do exist some of us who actually want this to be a major city someday.) I’m not necessarily suggesting that sports will accomplish that, but ALL San Joseans should celebrate the Grand Prix. It’s actually a fun event in which to just hang around – you don’t have to be a race fan or a gearhead or whatever. Just go there and people-watch, for crying out loud. Get a drink. Eavesdrop on conversations. Whatever. If you’re a creative person, you can find a way to enjoy yourself at any event like this.
Don’t whine to me about the detours, the streets being blocked off, or the “incredibly awful inconvenience.” I don’t drive. I don’t care. You chose to live a life that depends on having a car, so deal with it, pal. Don’t complain to me about it.
I’m hoping the Grand Prix will be here for decades to come.
JMOC #8 –
I think that was your best piece of advice since the moment you started posting. Applause. Applause.
4. Awww sounds like you were insulted by Single Gal’s comments on Hairy Men, can someone say Laser Hair Removal? When did a tank top with a bra become a fasion no-no, I suppose you prefer them to be hangingo out for your enjoyment, but you can go to the Brass Rail for that type of eye candy.
Satan #9: I have found it not too terribly difficult to navigate the road changes due to the race.
However, as an admited non-driver, you are clearly not an objective commentator on the subject. If the race were a great thing for ALL of San Jose, as you claim, ALL of San Jose would be clamoring for a seat. Such is clearly not the case.
See my post #8.
Wow, looks like this heat is making Zoom Zoom pretty testy….
I would think that the non-drivers would be even more annoyed about the race than those who can easily re-route themselves away from downtown. Many non-drivers are transit-dependant and the bus and rail system will be disrupted big-time this weekend.
Dear Single Gal:
Hope you have a nice time at the Grand Prix this weekend, and that’s it not too hot for everyone.
Just wanted to bring everyone’s attention to Barry Witt’s article that ran on Sunday concerning the economic benefit that the race brings to the city. Witt’s article seemed to suggest that, once again, the books were cooked.
“Significant weaknesses in their methodology, including reliance on questionable attendance figures and spending projections, double counting of funds and use of an unreliable formula for determining how much money trickles through the local economy.” (Merc 7/23/06)
ALSO:
Did you see Gonzales’ outrageous quote from the DLC meeting. Addressing whether he was received warmly or not by his fellow convention goers, Gonzales was reported to have said, “I think they recognize that these things happen to people in elected office.” (Merc 7/24/06
Ya can’t make this stuff up!
Pete Campbell
JMOC,
All of San Jose is not clamering for a seat at the following as well:
Rep Theatre
Opera San Jose
Sharks Games
The convention center
the Mexican heritage Plaza
and many more venues.
Does that mean we should not have these as well? And not support them with public money or resources?
San Jose would be the most boring city in america without venues / events like these. Of course, if it isn’t already.
I agree with Satan, though I know my priest wouldn’t be too thrilled to hear me say that. As someone who does drive to and from work every day, I am no stranger to traffic (nor am I a friend of it). So now, maybe I’m stuck in five minutes more of traffic a day. Is that really that big of a deal for people? It’s a week long minor inconvenience, use those five minutes of traffic to map out the rest of your day or to map out what comments you want to make to this website.
I understand that some of you can tolerate the traffic but your real complaint about the Grand Prix is the $4 million subsidy used to pay for it. But when considering all of the benefitts that come as a result of the Grand Prix, this $4 million is nothing. San Jose is now the tenth largest city in the country thanks to events like the Grand Prix which is televised in 54 different countries. And just in case getting the opportunity to see David Lee Roth perform isn’t enough to change your mind, don’t forget that the Grandd Prix brought in $41.6 million last year alone.
No offense Mr. Lincoln but the Grand Prix is an event that can please all of the people all of the time!
That a great many people will be in town enjoying themselves is a good thing, which is not the same as saying that publicly subsidizing the Grand Prix was justified. Sacrificing our streets and trees and storefronts to a for-profit enterprise is subsidy enough, the cash demand was salt in the wound. If sufficient profit could be extracted without a subsidy in the other cities on the circuit, how did it become impossible here? Do our citizens lack the required level of interest or disposable income? Are there unusual overhead costs in San Jose? Or was it—AGAIN—just a matter of weakness or corruption on the part of our city leadership?
Not being a race enthusiast I will avoid the downtown this weekend. I hope the crowds spend money in the hotels, bars, and restaurants—our business community is deserving. Were it not for the fact that so many subsidized downtown hotel rooms go unfilled the rest of the year (business folks don’t much care for our lowlife brand of diversity) car races and other desperate measures would not be necessary to keep our establishments in the red.
I would be interested to learn this: will the race crowd have to rub elbows with our resident population of filthy bums, raving lunatics, and Oakland drug dealers, or will they be spared a genuine downtown San Jose experience? I suspect they’ll be spared. Somehow, the city that doesn’t know how every other day of the year will figure it out this weekend.
In terms of opportunities lost with the Grand Fix subsidy lets put into real terms what the $4,000,000.00 could have been used for:
1) The SJ Housing Department could have created 100 units of affordable housing downtown based its current subsidy level of $40k per unit, AND could have helped some of the 7600 documented souls living on the streets or in their cars; OR
2) 100 teachers could have been provided First Time Homebuyer Loans to keep them teaching in SJ schools instead of moving to lower cost housing areas; OR
3) The SJ Parks Department could have purchased approximately 1.3 acres of badly needed parkland; OR
4) All the community services eliminated or reduced in funding by the Council in this year’s budget could have been fully restored and each provider given an increase in funding tied to the CPI; OR
5) Approximately 20 police officers or firefighters positions could have been restored in the budget; OR
6) The NORCAL increase in garbage rates could have been repealed or reduced; OR
7) The “temporary” 911 emergency fee could have been reduced or eliminated; OR
8) The scheduled water, storm, and sewer rate increases could have been reduced or partially delayed; OR
9) Some of the library hours that were cut could have been restored; OR
10) The SJ Museum of Art, Tech, Children’s Discovery Museum, SJ Rep all could have received badly needed additional funding support; OR
12) Approximately 2,200 life line meals annually could have been provided to seniors on fixed incomes; OR
13) It could have paid for some of the Airport Expansion Costs (especially the “high tech” Art Pieces); OR
14) Worst case, the City could have paid off some of the hugh debt service accummulated for the money losing Hayes Mansion
#19 HAC’er:
I agree completely with your comment. Setting priorities on where public money is spent is where this City is sorely lacking. So much long term good could result from proper spending of this $4 million rather than a short term party.
#16 J Walker:
I don’t remember the Sharks getting a public subsidy. They rent out and manage the HP Pavilion for the city. With 41 home games (plus playoffs) and with almost 20,000 people attending per game, they clearly generate money without using tax dollars.
#17 Engine
I am not sure it is events like the Grand Prix that make San Jose the 10th largest city. I believe it has something to do with population.
Unless of course the Grand Prix result in some type of mini baby boom in about 9 months. As far as the $41.6 million, this number continues to be spouted about but as has been pointed out previously, the formula is seriously flawed. There is no consideration of lossess generated to business that have to shut down for at least one day (Friday). There is no consideration of the damages caused in accidents by the set up crew (I saw something fall off a truck on Almaden last Thursday and hit some gentlemens brand new car) and the resulting insurance claims. There is no accounting done city wide for the favorable AND the unfavorable results. They just add up the hotel receipts, restaurant receipts, gate receipts, concession receipts and souvenir receipts and say what a positive thing it is. The city cannot take one side of the equation and say what a great event it is from a financial standpoint.
A website for a council candidate has the proud endorsement of MANNY DIAS, member of the state assembly
IT IS MANNY DIAZ
maybe there are two?
the grand prix is a wonderful addition to downtown. the city streets deptartment engineers and workers are very conscientious in preparing the course while maintaining safety and order. it is an inconvenience, but that’s life in a downtown. it is expected and makes things interesting. at least it looks like something is going on on a weekend (sans festival events). as for single gal and clone single gal – stay indoors, drink your pink cosmos and leave the sporting events to people who can appreciate them first hand or at least from ground level. you’re probably too busy shaving stuff anyway.
HJ
Micheal Schwerin #21
The arena was built with a significant amount of tax dollars (which I agree was a great investment).
Also, the arena was known as San Jose Arena until the City Council gave the sharks the permission to sell the naming rights for about 4 million per year (which the sharks get to keep).
So it is safe to say the Sharks have recieved more than enough from the city of San Jose.
National coverage about the upcoming Las Vegas Grand Prix race:
…. the Vegas Grand Prix will more closely follow the successful course the Long Beach Grand Prix has taken since its inception in 1975 and avoid the problems that overshadowed the inaugural San Jose Grand Prix and earlier Denver races.
(While the same cars and drivers run in the races, all four – Long Beach, San Jose, Denver and Las Vegas – have different promoters.)
Despite drawing a three-day crowd estimated at 150,000 in San Jose, the luster of last year’s race quickly tarnished when it was learned how race organizers in January were granted a $4 million subsidy by the city.
According to published reports, it was later revealed that outgoing Mayor Ron Gonzales and Vice Mayor Cindy Chavez had known about the request for months before bringing it to the City Council for a last-minute vote.
The controversy may cost Chavez her bid for mayor.
Someone mentioned Gonzo working for some neighboring city and doing a briliant job.
Not listed on his resume, or his bio.
How come???
in response to Mrs. Reynolds as to why the difference in treatment. There are several reasons. However, I believe the # 1 reason is:
The type of crowds they attract. One is viewed as a gang banging troublemaker, the other, a great buch of well meaning folk willing to fork out $6.00 for a beer and visit downtown establishments in an orderly manner. Until the low riders get organized and show they can sell beer for $6.00 at a major promotional cruise night, the perception will remain as is.
I don’t think cruisers will be getting any type of subsidy anytime soon. The best they can hope for is a place in the Cinco De Mayo Parade.
The Race: It appears to me that the Grand Prix car race is most inappropriate at this time – what with ‘spare the air day” for days in a row in San Jose ! These Grand Prix race cars most likely get very low mileage to the gallon and going in circles must emit tons of pollution in an already congested area.
Also, I do not understand why we (San Jose taxpayers) would give this race promotor group permission to race down our city streets when we have spent probably hundreds of dollars running out “low riders” from cruising down the streets in downtown at 3-10 miles per hour in thier masterfully painted vintage cars ! Tell me why the difference.
You know what! I am sick and tired of San Joseans… You know who you are. San Jose has so much potential, but YOU want San Jose to be the little cow town its been for the last 50 years. YOU would like SJ’s population to be cut in half. YOU would love it if Downtown were not Downtown, but rather NoTown, or CowTown.
I’ve lived here for 15 years and felt that SJ finally had the chance to have a thriving cultural scene, nightlife, and business center. I was hoping Pandori would win the election to inject some common sense in our government, bring life to our downtown, and get the crap-leaders we have now out! I am finally disgusted with San Jose and its labor party @sswipes. Cannot even negotiate restaurants in its City Hall.. Cannot even keep businesses in Downtown… Why are WE here? YOU are the reason I am leaving. Sure, YOU may be happy I am leaving, but its your loss. YOU’re the ones losing out on fun and culture and diversity. YOU are the ones who will be known as the people that stopped a great city from growing…
No sports team support
No sports support period
No BART support
No Downtown support
YOU support:
Urban Sprawl
Three Downtowns
No diversity
YOU nit pick every little thing! You’re a bunch of whiners… $4M!??!?! Geeez! That is nothing in the big scope of things.
I hope you’re happy with your city.. I mean TOWN! San Jose is the 10th largest city and the LARGEST TOWN in the Country.
I am fed up.. How is it Fremont is in the race for Baseball.. Santa Clara in mind for Football.. These are puny towns next to San Jose! Grrrr!!
Be happy with Chuck Reed.. He’s going to give all you old-timer, regressive, good-for-nothing-but-sprawl inhabitants of San Jose exactly what you want!
GOOD BYE!
Tell us how you really feel # 28 Downtowner…
What brought this on? If it’s the cruisers, I was just trying to make a point. I would love a baseball team, or just about any profesional team in San Jose, BART to San Jose, High speed rail in and out of town. Stay and help make it happen. Don’t cut and run…
One of the biggest mistakes our political and civic leaders continue to make is trying to make downtown a yuppi destination instead of letting it grow on it’s own merits; offer something for everyone, not just a chosen few.
If you are serious about leaving, we’ll miss your spunk and spirit.
Zoom Zoom, comment was unnecessary, you must be a real winner.
Still think the $4 M could have been used to fix the swimming pools in parks for the kids.
A question worthy of an answer; why would anyone plan The San Jose Grand Prix and The Gilroy Garlic Festival, two grand events, on the same weekend two years running?
And nobody please respond “because someone is an idiot”.
Got into the office (160 W. Santa Clara)today @ 8:30 a.m. The noise of the cars was so great inside my office that I could barely concentrate. So I went golfing in Pleasanton @ Callippe Preserve GC. Spent my $$ outside SanOhaze.
The entire floor where I sublease space was closed for the day. I hope they had as good a time as I had. Bet others left town to spend their $$.
I’m leaving town for the weekend, so someone else can spend the money I would normally spend in San Jose. I bet that ConVis doesn’t put that in its equation re the economic impact of the race weekend.
Plus, there’s a big race @ Infineon this weekend. Nice timing, guys, in selecting the weekend to have the race here.
I hope SJ race fans have a great time. I really do. But I’ll spend my bucks elsewhere.
Why is it that other towns have Champ car races at little or no public expense, but San Ohaze hasta pay them to come here?
Why is it that hotels, ballparks, retail development all gets built with private $$ elsewhere; but San Ohaze and its RDA must spend a couple of billion bucks to get people down here, while starving out the old timers who have been here forever?
Hhhmmm!
I hope everyone who attended had a good time @ the Grand Prix.
However, as reported in the Murky News on Friday, it seems city officials and race officials need some re-education in community relations.
Seven Balbach Street households with a total of 29 people residing therein were forced to leave their HOMES by 7:00 p.m. Thursday, since their houses were completely sealed off by the race track. They got a voucher to stay in a hotel. Oh boy! You get thrown out of your own home! What’s that!
“Residents on other streets affected by the [road] closings and traffic were not offered hotel rooms becasue grand prix officials say they can still get to their homes.” Oh great, it takes forever to get home due to traffic and closed streets/detours, and you get to hear the deafening noise all day, and see a prison-like fence out your window.
But the guy who takes the cake is race spokesman Mr Rahan who sayeth: “Technically, they still have access [to their homes].” Great, Mr. Rahan, next year, you live there race week.
Other residents got the runaround, as city officials referred them to race officials, who in turn referred them back to ciity officials.
It was so difficult to get around that some residents didn’t get mail delivery.
And where was Ms. Chavez, alleged champion of the people, when all this occurred in her council district? MIA. Probabaly in an air-conditioned luxury box the other side of the fence from the displaced residents.
It is too bad the City that can’t shoot straight continues to bungle major events like the Grand Prix. We all know about the give away of public funds, the secret meetings, etc. Now we have the avoidable debacle as told by #34, the grossly inflated attendance figures, and Cindy continues to tout the discredited numbers used to inflate the economic impact to the city.
Why can’t our elected officials and race officials simply tell the truth?? If they did, they might blunt the ongoing criticism by myself and others. Why not give the true economic numbers? Why not be truthful about the paid attendance figures? If the true numbers are so bad then maybe we should rethink the value of this event. If they are not no bad, then tell us so a real evaluation can take place and determine if the race stands on its merits or not.
As long as Cindy and others continue to run loose with the truth, the cynic in me says we are not getting our value on our investment. If and when Cindy and others tell us the truth, then I will reevaluate my opinion.
This last weekend, my 9-year-old son and went to two san jose sporting events. First, we went to the Grand Prix. My son pronounced it: “loud and boring.” Next day, we went to SJ Giants vs. Visalia Oaks. “Exciting and fun,” was the pronouncement. I agree. Can somebody explain to me why there is an inverse relationship between the amount of money our labor-dominated council hands out to some events and the success of those events? (and yes, that’s a rhetorical question). Go S.J. Giants.
Call me a grump, but why is Blossom Hill Road so lumpy – until one crosses the city limits into Los Gatos?
And that is by no means the only poorly maintained street.
I’ll vote for people who will take care of the real business of city government (potholes and garbage removal) and leave the entertainments to the private sector.
Wow what a bunch of pissers & moaners you guys in San Jose are!
I’ve lived in Toronto since 1989. The first summer I was here I heard about this thing called the Toronto Molson Indy. I’d just arrived from Europe so had no clue what to expect. But I couldn’t help but miss it because the newspapers, the tv, the billboards in the area, the magazines, the Beer Store – everyone was behind the event. This was a ‘major’ part of the summer in Toronto!
So I went. Unbelievable. 160,000 people enjoying the sun, the cars, the people, the food, the atmosphere. Tourists from all over North America spending money in our great city and being impressed with not only what we had to offer (besides the race) but that the fact that the Toronto was such enthusiastic & friendly host. The event continues to be so successful, and many people come back to vacation in Toronto every summer – PLANNING their vacation around the race weekend!
What nearly all of you in SJ seem to be forgetting when you think of the $4 million dollars – is:
– The massive influx of tax dollars to your city’s coffers on GP weekend.
– The massive influx of money being spent in your city, lining the pockets of your entrepreneurs & business owners (esp hotels, restaurants, caterers, parking lots, etc) – and probably your public transit systems too. (Toronto’s public transit is the best way to get to the track).
– Think of your city’s advertising budget for self-promotion. Toronto spends millions and millions of taxpayers money every year putting ads in all kinds of international magazines and publications, attempting to keep the city’s name & benefits at the forefront of people’s attention (for business/recreation) – and I’m sure San Jose does the same. $4million is pittance in comparison to the ‘free’ exposure the GP generates for the city. Ok, so in this case, the 4million in improvements was not ‘free’, but at the end of the day: DID THE CITY GET IT’S MONEY’S WORTH? I have no doubt that the answer is YES.
– The GP is a great event to not only thank existing business clients in a fun, relaxing atmosphere, but also a place to entertain corporate clients and set the groundwork for new deals. ie: increased future businesses and tax revenues.
– It’s 1 weekend a year. Yeah, I wouldn’t be happy about getting kicked out of my house, or trying to work in an office with lots of race-car noise outside, but if you’re not going to get into the spirit of the weekend, book your vacation time or something and go away for the weekend!
Or, write a reasonable complaint to the GP promotor and suggest alternate compensation for the future.
Btw, Toronto traditionally has many cultural or sporting events going on simultaneously—GP weekend is usually the “Taste of Toronto” food celebration, where part of the main street through the city is closed down so that restaurants can do sampling and food sales out on the street. It works out great – once the track action is over for the day, you head to the downtown core and have dinner in another unique and fun atmosphere!
Anyhow, bottom line – at the end of the day, you did NOT ‘lose’ or ‘waste’ $4-million. It was an investment, and one that I have no doubt will see a profitable return.
Instead of 100 Housing units, because of the GP, the city may, if they choose – have the money to build 150 units. Perhaps they will now have the money to restore the library hours that were cut. Perhaps they will have more money for a hundred “wish we could afford to” projects..
Or perhaps they’ll reinvest it..
With regard to #32’s query of why the Garlic Festival was scheduled for the same weekend, two years running, my guess is that there would little overlap in the demographics.
Those wishing to broil in the hot sun while admiring a vegetable probably don’t have much in common with those wishing to broil in the hot sun while watching Champ cars bounce over man-hole covers in downtown San Jose.
Being an exile from San Jose, I enjoyed watching the San Jose Grand Prix on the telly. Perhaps the Garlic Festival was on the vegetable channel, but I can’t imagine that would be too entertaining, unless their was a biker rumble.
38 – You make some valid points, although some of them are not accurate as they relate to San Jose. You also ignore the stinky politics associated with this event. And you don’t mention the steady stream of false information given out by the promoters and the city. We don’t really know the true economic benefit—all we know for sure is the race lost money again this year. For an event of this size, cost, and disruption, there has to be a relationship between the citizens and the promoters/city officials that is based on trust. That has not happened. I won’t go into all of the details, but suffice it to say that “trust” is a commodity sorely lacking here.
Another factor you ignore is that Toronto is a vacation destination with or without the Grand Prix. San Jose is not—even with the Grand Prix. Should our priorities be the same as a tourist destination? That’s a whole other discussion.
#36 Torotonian
Unfortunately, you have a better run City than we do and don’t have council members who are making up for their personal shortcomings by trying to become the 10th or 9th largest City in the US. On Tuesday (8/1), our City Council is voting to increase our sewer and stormwater rates at the same time that it is giving pay raises to certain connected city staffers—so much for wise reinvestment of any of the economic benefits from the Gran Fix. Bottom Line: This weekend out of towners partied at our expense and now we have to deal with the fiscal hangover!
The majority of this City’s residents measure our City not in terms of sheer population size or whether we host a third-rate car race that will be defunct next year because of a merger with a competing racing circuit BUT instead on trying to maintain the community’s quality of life which includes the following: safe neighborhoods, good quality schools, affordable housing, well maintained parks, open neighborhood libararies, well maintained public infrastructure, good available employment, a balanced business climate that that doesn’t scare business away from making investments or staying, AND honest and responsive local government and elected officials.
Sorry, Torontonian, but the race lost $$ again this year. And, due to paid parking during the event vs. free wekend parking otherwise, lots of restaurants lost money too. Some even close for race weekend.
39 & 40 both said it well.
San Jose has a perennial inferiority complex that it tries to mask with these type events. But we have to pay them to get them here, while other, better-run, cities do not.
To be up front and honest, I was a manager working the Grand Prix this last week. I put in probably at least 70 hours this past week of my own time not counting the countless meetings we had pre-race week. Yes, I do have a regular job as a Light Rail Operator/Instructor so I did all this after work and took Fr/Sa/Su off to work from 5am-to well past 8pm. For those that do not even know, and how they could since our local “rag” does not even mention us, there were over 500 others like me, some volunteering more, some less. But in the midst of all the hoo-hah of whiners about the $4 million, you all can seem to forget that the race is really secondary to the real goals we volunteers have. That is that the dollars above the cost go to the Canary Foundation. There are no “fat-cats” making millions OK?
Now, without all those that gave of their time (one being a Marine who came home on leave from Iraq), the costs would have been much more, the donations to Canary non-existent and the whining even louder. Give me an example of an event that brings in more revenue to the city by way of people not just from out of town, but out of the country and I am all ears.
But there are so many other related revenues that will not/or cannot be known. Such as added staff to cover businesses additional customers (those workers have to get paid, that means more in taxes, they have to be fed, that means more revenues, etc.). There are also the revenues brought in by those that “sneak in” to the race. Yes, they were there, I know because I spent hours trying to stop them but they have to eat and drink something even though they are not counted as a paid ticket.
I can attest to the estimate of revenues since I called the Mayor’s office in Long Beach a few weeks ago for there city’s info on their Race. The mayor’s advisor told me that their revenue is $37 million per year. Ok, maybe that is an estimate also, but they have run studies to verify as closely as possible so the estimate is sound. I was also told that the City Manager has said that the GP there is like 50 Super Bowls EVERY year. Football fans know you can at best get a SB once every 7 years at best since all other cities are bidding for it.
I suggest anyone else, especially anyone who has lost someone close to them (like myself and MANY of the other volunteers) go do some research on the Canary Foundation. Maybe then you will see why we all did what we did. We ALL hope that it’s your relative, your loved one, or even yourself that we made a difference for and were instrumental in saving their lives through this excellent organization.
Steve # 42: Thanks for your time and effort.
I have no quarrels with most of your post. However, all I have read said the event lost money last year and this year. So, what “dollars above the cost go to the Canary Foundation” if there is a loss?
I was born here in San Jose. I live in downtown and like Steve #42 I was a volunteer at this years GP.
Auto racing is not for everyone. That much is clear. But the people that did attend had a great time. Most of the (over) 500 volunteers made sure of it.
Last year’s race also lost money but in the end, raised over $700.000 for the Canary Foundation.
I hope that the race comes back next year. In fact, I hope they finish out the 10 year contract.
Drawing the GP to San Jose is huge. Remember people, this is a city that can’t even keep any retail open in the very downtown they are trying to promote.
In response to your question of what dollars above cost go to the Canary Foundation:
First the Canary Foundation is a non-profit organization. Being that it is, dollars are donated that are separate of the costs of the race itself. Last year that figure was over $750k, this year over $ 1 million dollars. These are donations from a variety of sources and events during the race week (check the website for these figures). In fact one thankful Saratogan gave $1 million himself earlier this year, not because of the race but the organization.
The real reason the race lost money was due to the high start-up costs associated with putting on such an event for the first time and the improvements made for year 2. After these expenses are made the costs will decrease over the next few years and the race will become profitable. An easy example is the cost of concrete barriers. They had to be bought but once the were, they are re-used each year and the only expense they now would have is the cost to place and remove them. The capital expenditure has been made (probably depreciated of course). Same goes for other items re-used each year. Other items might be leased/rented.
Because of these high start-up costs the race loses most in the early years and will make a profit later with a portion of those dollars to go to the Canary Fund. One can even look over a tax return of the Foundation to see no executives made money. I assume that when profits are made, a reserve will be established for future costs and rest will go to the Foundation. Any losses are covered by the organization not the city. I could imagine that happening, like never.
What is most important is that the city gets large amounts of additional revenues from the event. The $4 million figure (which of course is really less than $2 million due to the re-investment in city expenditures made by SJGP) will be way more than made up and I would think the city will not have to give any additional monies in the future when the race becomes self-reliant. The city of Long Beach has been having a race for over 30 years and there is the example to compare to.
Now for comparison, the Sharks got $147 million and the Improv got $14.8 million from the Redevelopment Agency (for lease back payments I am sure won’t pay those back). Recently, the city council wanted to pay Trader Jo’s to open a store at the new Market Center to serve that area to the tune of $2 million plus. There’s also Zanotto’s and the list is endless. My point here is that many more entities (remember the fiasco the “Pavillion” was?) have been given much more with low or even zero revenue (losses) returns vs. the Grand Prix which has returned millions against a small investment. The additional sales tax revenues alone should make up for the costs let alone payroll taxes and hotel taxes.
Now with these additional monies, many more things can be paid for by the city. If they choose to not, then that is the politicians fault or ultimately ours since we elected them (or did not elect the ones that should have). But to say that the city money would be better spent elsewhere is short-sighted. Simple business 101 says that to make $2 you need to spend $1. How else can a company not make larger profits if they don’t spend on research?
I think in a short few years the squabbling about the race will subside, the talk will only be mostly good and the citizens will see that the race is a good thing for a large city. That is the way Long Beach views it, I think we will also. I can remember back when people thought the Sharks and the “Tank” were a extremely costly mistake. But you don’t hear that much these days. But I think you could easily say that due to those 2, the downtown area, especially close to the site, has seen a major rejuvenation. Anyone remember having to drive all the way to SF/OAK to see a top show? I do and I like taking the train down and walking a few hundred feet and I AM THERE.
Lastly, I was lucky to win some tix to the race and since I had to work it, I gave them to my brother-in-law (had to work) and he passed them to his cousin from Germany and his son. Being that his cousin was a racing “nut” he was pleasantly surprised that this was only the 2nd year of “our” race and how well it was put on. Back where he’s from tracks are not in a city. He remarked how you have to usually travel a distance to see a race and how nice it would be to visit here again, stay in a hotel near the track and just walk outside to see the race. I just wonder how many German people he’ll see from now on and tell them of San Jose. A city many of them might not have even heard of.
gp girl #44: Please explain to me how the GP lost $$ and still donated $700k to The Canary Foundation? Was it the GP organizers that donated the money individually, was it fans who dropped off checks and cash? Or was it a portion of the SJ subsidy that was diverted to the foundation?
Has any independent source confirmed this donation and identified the source of the funds?
Guess I should have read 45 before I queried 44. So, it seems that ZERO dollars donated to The Canary Foundation last year were even the slightest bit race-related. They were contributions separate and apart from the race or its organizers. So please don’t insult us by telling us that THE RACE raises $$ for the foundation. The contriibutions seem at most coincidental; but most probably would have been made even if the GP never took place.
Indeed, the implication that the race itself raises $$ for The Canary Foundation borders on fraud.
The GP does not return millions TO THE CITY. It may generate a few million extyra hotal/restaurant dollars; but it also drives away regulars from local restaurants on race weekend due to the parking charge. I read the other day that on one race evening Eulipia grossed $72.00 and 71 St. peter didn’t bother to open due to a $10k loss on spoiled food and wages paid when no customers came last year due to the parking charge.
The economic impact numbers have been shown to be completely bogus due in part to the flawed methodology of counting all season ticket buyers as being in a seat every day of the race, and spending “X” dollars, when in fact they weren’t there every day and weren’t spending$$.
I have no problem with the race itself, or the minor inconveniences it causes. My problem is with the gift of public funds and the blatant misrepresentation that the race itself somehow contributes $$ to The Canary Fund.
Don’t forget that the GP Queen, Cindy, still uses the phony numbers to justify her support for the gift of public funds. Apparently she’s never met a subsidy she doesn’t like—even if it has to be propped up with bogus numbers.
Post #3 by LOCAL…………I certainly hope your in the minority of people in San Jose when you say your glad Bart didn’t make it down here. That’s about the dumbest thing I’ve heard someone say this week. Thanks to that kind of thinking, I spend over 2 hours each way to work. Take public transportation? Ha, it would take 2+ hours to take the VTA, then the bus, then Bart. Idiots like you should go back to the ocean
Satin, stuff it man. If San Jose continues to attempt to “live up to its full economic potential” there won’t be a spot of green left in the city and less room to move around it anyway. While the Grand Prix in theory was a good idea, the implimentation was horrid. Detours went up quickly, were changed often and usually ran traffic down smaller streets not able to handle the outflow. City cops seemed unorganized and unable to handle the traffic jams that sprung up for miles around the race course. San Jose has problems that a Grand Prix race isn’t going to solve