June 9, 2011 in City

Deal ends raceway deadlock

Court-ordered receiver to pay for toxin removal

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A recent court agreement may lead to a sigh of relief by county commissioners and investors in the former Spokane Raceway Park.

The agreement breaks a stalemate over testing to determine whether the raceway, now owned by the county, has contaminated groundwater.

The issue has prevented aging investors or their heirs from receiving dividends on money they put into the raceway in the 1970s.

Court-ordered receiver Barry Davidson agreed to pay for any required cleanup of toxic trichloroethylene solvent the county found in one of the raceway’s two wells days before the property was to be sold at auction.

Although $1 million of the sale proceeds was set aside for a possible cleanup, Davidson’s commitment is open-ended.

Spokane County commissioners want a “determination from the Department of Ecology and any other necessary governmental agencies that the cleanup (if required) has been achieved” before Davidson pays the investors.

Davidson argued that the set-aside is adequate to cover the environmental obligation, and sought court permission in March to distribute $5 million to “unit holders” in Washington Motorsports Limited Partnership.

The partnership financed Spokane Raceway Park Inc., a closely held corporation that never paid the dividends it promised. The raceway’s former operator, Orville Moe, is now a fugitive. A bench warrant charges him with contempt of court for disobeying a judge’s orders in the Superior Court takeover of his company.

Davidson raised $8.2 million in April 2008 when he sold the raceway property in a court-ordered auction.

County commissioners Todd Mielke and Mark Richard said they wouldn’t have paid $4.3 million for four of 13 parcels, including the speedway itself, if Davidson hadn’t agreed to pay for any required trichloroethylene cleanup.

County tests a few days before the auction found 11.1 parts per billion of trichloroethylene, or TCE, in one of two raceway wells. The state threshold for requiring a cleanup is five parts per billion.

No TCE was found in three shallow test wells that Davidson provided. Nor was it found in a second test of the supposedly contaminated well.

Nevertheless, the Department of Ecology said in April 2010 that three deep test wells should be drilled.

County officials said Davidson balked at the estimated $160,544 cost of drilling the extra wells, but he said that is a “mischaracterization.” Davidson said he wanted court guidance on how the cost should be allocated.

In addition to more wells, the Department of Ecology called for tests to look for other toxins. That is a county responsibility, and the county should help pay for the new test wells, Davidson argued.

The county’s attorney, Chief Civil Deputy Prosecutor Jim Emacio, said the county’s only responsibility is to clean up contaminated soil, which it has done.

The deadlock was broken by a court-approved deal in April.

Six comments on this story so far. Add yours!

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  MrNatural on June 09 at 9:34 a.m.

  Interesting…So we are to believe that after 30 plus years of filthy hazardous waste management practices by the former owner and on the word of the receiver who stands to make additional profit if the contamination is glossed over and on the somewhat untenable assertion of the county attorney (where is the clean up report?) that all is just peachy-rosy at boondoggle park. BULL!

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  wenric on June 09 at 11:40 a.m.

  Contrary to the “mis-truths” espoused by former Commissioner Mager, the county wrote a pretty iron clad contract that puts the receiver on the hook for all contamination of the wells.
  The county has completed its land clean up that came in under $100,000. The track generated $580,000 in economic boost to local employers just this last weekend with two amazing events; filling hotels, restaurants and shops with out of town visitors. And, the track has over 90 events remaining for the season including this weekends “real” outdoor Monster Truck event. Lets face it, this facility was destined for destruction before the county stepped in. What a great time for it to be operating and supporting local workers with tourism!
  One volunteer called it a convention center on asphalt.

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  Thayne on June 09 at 3:24 p.m.

  So wenric, when did the county commissioners hire you to be the PR hack for the raceway, while defaming Bonnie Mager? Bonnie Mager was the only voice of reason when she served. The other 2 commissioners completely ignored the report that the racetrack was a hazardous waste site. Only $100,000 to clean up acres of toxic waste - I don’t think so. Either the “cleanup” was just on the surface (barely) or it wasn’t done at all. It costs $400 - $800 just for an inspection to see if a 2,000 square foot home has asbestos issues. If there is clean-ip costs can be up to $10,000. $580.000 - really!! Again, I find it hard to believe. How many people showed up to the events? How did you arrive at your numbers?

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  Dazzeetrader11 on June 09 at 10:50 p.m.

  Never been to the place Sounds like the County is going to turn it into a profit maker. Mager disliked and vote NO on everything as I recall. Never been to a auto race as I think they’re boring.

  I never understood it . Good to know though that the money will begin to flow. I think a new group of operators has been hired. People with experience.

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  wenric on June 10 at 8:03 a.m.

  The figure of $580k came from the Convention Visitors Bureau. 500 participants (100 cars plus crew and families) and over 1000 spectators at the first ever Sovren race on the road course. 90% of entries were from out of town. 5500 fans at the oval course (record level of Super Late Series car entries on the oval).
  Yes, the county was only responsible for the surface contaminant. Less than $100k to date and they believe they have completed all work necessary to receive clean bill from Department of Ecology.
  The report you speak of never existed. Mager pressed county staff to give her a number for the exposure after initial testing was done. staff said it could be $50k or $5 million, but they believed it was on the lower end. That figure included the cost to clean up the wells; which the county wrote into the contract holding the receiver responsible for that portion.
  To this day Mager uses the $5 million figure, even though she knows it was a complete SWAG and that staff told her directly it was likely on the lower end of that number, and she knows it included the wells which the county is not on the hook for.

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  MrNatural on June 10 at 10:18 a.m.

  Thanks wenric…I don’t necessarily want this to be a boondoggle now as this is too important to the citzens of Spokane County. If it looses now we loose. earlier revenue projections reported were low. I was against the purchase given the years of unaccounted hazardous materials activity and I believe unpermitted sewage lagoons…just to name of few concerns…I would hope a good formal remedial investigation of the site is conducted.