Returning from vacation has its downsides. Among them is cleaning out the email inbox. This time the task was cringe-inducing, and all because of two press releases.
The first was an announcement from Governor Bob McDonnell’s office regarding what it called the “largest economic investment in Southern Virginia history,” a data center to be constructed by Microsoft in Mecklenburg county. Like so many of the economic development deals this, and previous, administrations have engineered, it carries a hefty amount of taxpayer-provided subsidies:
Governor McDonnell approved a $2.1 million grant from the Governor’s Opportunity Fund to assist Mecklenburg County with the project. The Virginia Tobacco Indemnification and Community Revitalization Commission approved $4.8 million in funds. The Virginia Department of Business Assistance will provide training assistance through the Virginia Jobs Investment Program.
It was such a big deal that even Dominion Power, ever-eager to find new, power-hungry customers, got involved to help Virginia “successfully compete” against other states to ensure that Microsoft (with a market cap of around $200 billion) would pick it for its new plant.
Which will create…50 jobs.
If only things ended there. A second press release, this time from the Lieutenant Governor’s office, boasted that NASCAR, too, was being allowed to dip into taxpayers’ pockets. Unlike other deals, this raid on the treasury had a particularly strong odor:
Lieutenant Governor Bill Bolling and state and local officials today announced International Speedway Corporation’s commitment to guarantee two NASCAR Sprint Cup races annually at Martinsville Speedway for at least the next five years.
“This is an important announcement,” said Lieutenant Governor Bolling. “Because the truth is that we came very close to losing one of our Sprint Cup races at Martinsville earlier this year, and losing that race would have had a significant adverse impact on the economy of Martinsville and Southern Virginia.”
Earlier this year, International Speedway Corporation announced that they were adding an additional Sprint Series race in Kansas City putting the Sprint Cup race at Martinsville Speedway in jeopardy.
What was the asking price?
As part of the agreement, a Tobacco Commission grant and other initiatives will help provide an enhanced fan experience at Martinsville Speedway.
The Tobacco Commission awarded Martinsville Speedway a grant of $1.5 million dollars, which will be matched by Martinsville Speedway for a $3 million project to upgrade facility infrastructure.
Bolling also announced that the Virginia Department of Transportation had already begun work on the construction of a new on/off ramp on US 58 adjacent to the speedway, which will improve traffic flow on race weekends.
The Virginia Tourism Corporation has also committed to help promote Martinsville Speedway’s Sprint Cup events in its nation-wide marketing campaigns. Earlier this summer the VTC announced it would also sponsor Martinsville Speedway’s annual Late Model Stock Car event, which is now The Virginia is for Racing Lovers 300.
I see…it’s a somewhat similar deal to the one that team owners have used (with great success) to wheedle stadium improvements, or entire new facilities, out of their local pols.
But it’s for the fans, so it’s all good. Except one does wonder what NASCAR will ask for in five years, when its “commitment” comes to an end.
A pony, perhaps?
