Nation's financial situation concerns CEO, but plans for High Rock Raceway haven't changed

By Steve Huffman

shuffman@salisburypost.com

Dave Risdon, CEO of the proposed High Rock Raceway, addressed members of the Salisbury Civitan Club at their weekly meeting Thursday at the Country Club of Salisbury.

Risdon gave a positive report of plans for the track, then answered a few questions from club members. Not all queries were of the softball variety.

One Civitan told Risdon that he and other Rowan County residents were excited about plans for the track.

"But they're skeptical of your chances of raising $30 million," the man continued in the same breath.

Track officials have estimated it will cost that much to build the facility.

Risdon paused, then reiterated what he and other speedway officials have been saying for years:

The money for the track is coming together nicely. It won't be long before motorists passing the track site off U.S. 29 north of Spencer will see much work taking place.

"Have I been concerned over the past month?" Risdon asked, referring to the nation's financial woes. "Absolutely. But I feel much better now."

He said financing for the speedway is coming from Vanderbilt Commercial Lending, a firm based in California.

Risdon said the financial meltdown of the past month gave lots of borrowers concern about lending money. And Vanderbilt, he said, was no different.

Risdon said the speedway was arranging a down payment for the track based on pre-sales of town homes at the track. One- bedroom units are going for $275,000 while two-bedroom models sell for $335,000.

Risdon said 98 of the initial 120 units have been sold, with buyers making minimum down payments of $25,000.

Risdon said as the economy teetered, officials with Vanderbilt contacted High Rock and said they wanted copies of signed agreements from those town home purchasers, reiterating their plans to buy. That was proof they required that the sales are in the works, Risdon said.

He said that of the 98 individuals who made reservations to buy, 92 quickly submitted signed agreements confirming their purchase plans.

Risdon said he and other speedway partners were pleased with the response, especially considering they were asking for those agreements at the same time Congress was mulling a $700 billion bailout of the financial industry.

Risdon said Vanderbilt officials responded with a promise to supply the track's financing.

"Our hope is to get closed very quickly and get motor graders out there, which is what everyone wants to see," he said.

Risdon was also questioned about legal wranglings the track has had with the N.C. Department of Environment, Health and Natural Resources, and Rowan County, over environmental issues at the track.

Risdon said the problems stemmed largely from having the wrong contractor involved with the work. That contractor has been replaced, he said.

"The contractor we have working there now has a good relationship with the county," Risdon said. "We've learned the wrong way a couple of times."

During a 30-minute presentation that preceded the question-and-answer session, Risdon spoke glowingly of the track, saying plans are to pour asphalt in March. Curing of the track will take a couple of months, Risdon said, with plans to open the facility next July.

He said reservations for track events won't be made until October to make sure everything about the speedway is ready.

Risdon referred to the track as a "motorsports country club," noting that in contrast to a typical country club that's built around a golf course, the speedway will be the centerpiece of this facility.

Town home owners will be considered speedway members and the track reserved for their use 60 days a year.

"It will be controlled passing," Risdon said of those amateurs who take advantage of those days for running the track. "There won't be side-by-side passing."

Risdon said the track will offer 10 elevation changes, ranging from 30 to 60 feet.

"That may not seem like a lot," he said, "but it makes the track extremely attractive. It'll be challenging for any driver or motorcycle rider."

Risdon said the track will be reserved for use by a variety of racing clubs — the American Motorcycle Association and the Sports Car Club of America, included. Numerous NASCAR teams have also inquired about reserving the track for testing.

Risdon said it'd likely be 2010 before professional racing events are held at the track.

He said the economic impact to the area should be tremendous. Though Risdon said the track won't employ a large number of full-time workers, its greatest economic benefit will be the visitors it attracts to Rowan County.

Risdon said the speedway will, in some respects, resemble Watkins Glen International in New York. He said studies of that track have indicated visitors spend an average of $200 apiece away from the track.

It's estimated that Watkins Glen attracts 500,000 visitors a year, meaning it pumps close to $100 million annually into that area's economy.

Risdon also addressed the issue of how he and other track officials are working to reimburse former North Carolina Finishing Co. employees for lost wages and 401(k) contributions.

The speedway is being built on the grounds of that former company.

Risdon said the $75,000 owed those workers' 401(k) accounts has been reimbursed, and back wages will be paid before the speedway is constructed.