With word breaking on Tuesday night that the fate of the Edmonton Indy was sealed, the City of Edmonton has confirmed this morning that the event will not be returning to the Canadian city in 2011.
The Edmonton Indy appeared set for better days this past July, when Octane Racing Group signed on as the race’s new promoter in a three-year deal. But with additional costs emerging as a result of moving the race from the western runway of City Center Airport to the eastern runway, Octane and the City of Edmonton were unable to come to an agreement.
Here’s the official press release from the city:
The City of Edmonton and Octane Motorsports Events have been unable to reach an agreement on the contract for a 2011 Edmonton Indy Race. As a result, Edmonton will not host an Indy Race in 2011.
“We are disappointed no agreement could be reached that made financial sense to both parties,” said Lorna Rosen, Chief Financial Officer with the City of Edmonton. “City Council quite properly set reasonable limits on the amount it was willing to invest and in the end we just could not make the money work.”
Council committed to investing $5.5 million in sponsorship over three years to help Octane stage the race. However, building a track layout that met the requirements of Octane, the Indy Racing League and the City required further capital investment, and expected cost reductions through having the race set up permanently on a new track layout could not be attained. Both parties worked hard to find a solution, but in the end it was not possible to reach an agreement.
“We looked at a range of possibilities for additional investment or cost savings,” added Rosen. “Both sides were extremely thorough in exploring every possibility to make this work, but the City reached its limit on what it could invest.”
The City had already invested $9.2 million in backstopping the race’s operating losses for the 2008 and 2009 seasons, with the financial outcome of the 2010 race still pending.
The status of the race for Edmonton beyond 2011 remains uncertain, pending any changes in circumstances.
Edmonton was consistently praised as an excellent host city for the race, and the race brought economic benefit and international exposure to Edmonton.
Octane was the only responder to a Request for Expressions of Interest the City issued in 2010 to promote the Rexall Edmonton Indy. The City and Octane proceeded to negotiate the details of a potential agreement, under financial parameters set by City Council.”
