Spokane7
48°
September 2, 2009 in City
Commissioners want racetrack operator out
Facing a possible $1 million lawsuit from local builders, Spokane County told the operator of its West Plains racetrack Wednesday he has 60 days to pay the builders or lose the contract he won just nine months ago.
County commissioners approved a formal notice of default to Bucky Austin, of Austin Motorsports Management LLC, contending he is breaching four areas of his contract, including not paying for some renovations earlier this year at the Spokane County Raceway. Four contractors have filed liens against the county totaling more than $1 million, and two other contractors reportedly have not been paid.
Austin assured county officials in early July that contractors would be paid, and agreed to obtain a bond or take out a loan to ensure payment. That hasn’t happened, and commission Chairman Todd Mielke indicated Austin’s assurances have worn thin.
“Actions always speak louder than words. I’m at the point where I need to see actions,” Mielke said.
The 60-day notice means the contract wouldn’t be terminated until the racing season concludes at the beginning of November, he added.
Neither Austin, a racing enthusiast who owns a string of auto repair shops, nor Cindy Gibbs, the spokeswoman for his Spokane track operations, could be reached for comment Wednesday.
An attorney for several of the contractors said he was glad the county was taking a tougher stance on Austin’s failure to pay. The contractors filed a claim with the county’s Risk Management Department in July, contending the county was negligent in overseeing its contract with Austin, attorney Jason Piskel said.
“We’re waiting out our statutory time before we file a lawsuit,” he said.
Although Piskel said the final decision to file suit has not been made, the county’s chief civil deputy, Jim Emacio, acknowledged the county expects a suit if Austin doesn’t pay the bills.
While Austin ordered the work, it was done on county property, Piskel said. If Austin Motorsports doesn’t have the resources to pay for the work, he said, “the county’s going to bear the brunt of it.”
When Austin was picked to operate the track last December, county officials hailed the 25-year agreement as a way to save taxpayers from being stuck with the cost of the facility, which the county bought for $4.5 million after previous owner Orville Moe went bankrupt.
Monthly payments from track operations were supposed to repay the money the county borrowed to buy the 315-acre site. Mielke and Commissioner Mark Richard defended the purchase as a boost for economic development. Commissioner Bonnie Mager opposed the purchase of the track but said the county owed Austin “a whole lot of gratitude” for reaching the agreement.
Austin agreed to make $2.3 million in track improvements over two years, but he opted to make most of them this spring before the 2009 season started. He paid about $1.2 million in construction bills, but in June contractors began notifying the county they weren’t being paid.
Mielke said it was Austin’s choice to speed up renovations, and the notice of default contends he didn’t receive the necessary approval from county officials for some of the work. He also didn’t get a performance bond to ensure payment, which was required in the contract.
After a meeting with county officials in early July, Austin said in an interview he would get a bond or borrow the money to pay the contractors “as quickly as possible.” He blamed his construction manager for failing to get the bond required in the contract.
But county officials were later told Austin couldn’t get a bond because the work was completed, and he was having trouble borrowing money because of stricter loan requirements, Mielke said.
If Austin doesn’t comply with the contract in 60 days, the county could take over the track and look for a new operator in the off-season.
MAC faces angry crowd 
Lulubelle on September 02 at 11:42 a.m.
The fact that this Mielke/Richard racetrack toy is not working out as touted by “the boys” is a surprise?……..to whom??
As I recall, it was to be a huge economic boon to the county, bring in tons of tourist money…paying for itself and a lot more.
So now the question begs……exactaly how much revenue has the county seen, and is the county on the hook for the millions owed by the defaulting contractor?
And by the way…..what ever happened to the toxic waste clean up and whose paying for that?
zelda on September 02 at 1:04 p.m.
“There has been a pattern of behavior…” The commissioners ought to take a look in the mirror.
spokanada on September 02 at 1:06 p.m.
It’s too bad there was no opposition to this plan before the county bought the money pit errrr race track. I just wish someone had the foresight to see this coming.
Lulubelle on September 02 at 1:28 p.m.
Commissioner Mager did see it coming. Too bad the voters didn’t have the foresight to get rid of Mielke and Richard when we had the chance. No telling how much more damage they can do til we get another chance.
twobit on September 02 at 3:21 p.m.
hey the track never turned a profit before so how can it now only thing that made money was selling food and t-shirts and beer that money never went to the track orvile was not getting rich like all thought and the family and investers screwed us all and they made spokane county buy the track well that will be a good place for the new jail ozzie better get to work on that maybe the county can move the fair grounds thier and sell the high priced property they have on havana be a good spot for it traffic would be a lot better and much more parking and with the jail thier we will have plenty of pot growers to clean the grounds
misjustice on September 02 at 5:52 p.m.
“” I just wish someone had the foresight to see this coming….”“
There were many that saw this coming, but Mielke & Richards (the “good ole’ boys club”) didn’t care what people wanted. They were going to do what they wanted.
Also, “”There has been a pattern of behavior…””
If they knew of this pattern of behavior then why did they appoint this company?
Time to get rid of these two jokers.
I hope Mager is standing in the background saying, “I told you so. See, I told you so!”
Rifleman_Dodd on September 02 at 5:57 p.m.
I would like to see the guys books audited just so that we can know the truth prior to commenting. He may or may not be struggling with it.
spokanada on September 02 at 7:36 p.m.
everybody saw it coming. Sorry if my attempt at sarcasm doesn’t come through in type.
Kneedragger on September 02 at 8:07 p.m.
Two Bit - do you know for a fact that your statments are correct? I’d like to see the numbers.
Gramma- I think the Pattern started this year, but I could be wrong as it doesn’t state whether that’s true or not. Do you?
Lulubelle - Don’t forget that Mager actually was very happy that the operator was chosen and was positive about the future.
Lulubelle on September 02 at 10:14 p.m.
Kneedragger - Mager voted against the purchase of the track.
No amount of “don’t forgets and “do you knows” will turn this sow’s ear into a silk purse
And yes, we’d all like to see the numbers………the number of dollars this mess will cost County taxpayers, and the number of other programs that will be cut in order to pay it off, the number of “non-meetings” it took to pull the sale off, the number of tons of toxic waste that needs to be hauled away, the number of contractor’s left holding the bag (that the County will have to pay off)…and on and on and on……
avboden on September 03 at 12:57 a.m.
Ignorance is all I see here in the comments.
You realize that the race track needed this initial amount of money put into it! The opportor just f’d up and did too much at once.
However, the track still has a VERY large chance at being successful. All motorcycle race weekends have done relatively well, drag racing has been phenomenal with NHRA sanctioned events coming in on the BRAND NEW drag strip.
All you folks that say this was misspent tax money, go look at the roads. THAT is misspent tax money. This race track, is not.
Very few places in the nation will be able to boast a high banked oval, a full street course, a full drag strip, a kart course, AND a full ORV park including MX racing right next door.
The fact that the general public has no faith is simply due to the fact that the general public knows absolutely nothing about the business of racing.
The problems with the track right now are NOT because it was a poor investment. They are a simple result of too much construction at once. However, drag racing can take full effect next year. More WMRRA motorcycle races will come to spokane, more car track days will be held. Everything for the track is looking up whether you can see it or not.
rickyd123 on September 04 at 11:54 p.m.
If the majority of people in Spokane are against it, it must be a Great Idea! At the moment Raceway Park starts marking money, the city will bulldoze it.
twistin on September 05 at 12:58 a.m.
Racetracks give a place to play safe off the streets (save lifes)
Build it and they will come.
Bucky Austin will come through with the cash.
rickyd123 ,lol youre comment is so true. sad but true
misjustice on September 06 at 9:51 p.m.
Look into Richards past as a real estate agent. I’ve seen it first hand. He bulldozes his ideas and doesn’t care what any one else thinks.
Also, ask around the courthouse. He is NOT a popular person there. Most courthouse employees know what he’s like.
Kneedragger… . “You think?” I said, and I quote: “”There has been a pattern of behavior…”” If they knew of this pattern of behavior then why did they appoint this company?”“
Richards & Mielke are the ones that say there is a pattern. I didn’t come up with that… they did. I just want to know why they did see it before giving a large contract.
Rifleman_Dodd on September 07 at 11:13 a.m.
Commissioners want the race track operator out because he’s now paying his bill?
Well we have been clammering for years wanting the Commissioners out for the same thing.
Whats good for the goose is good for the gander.