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Friends of Laguna Seca has emerged from a competitive bid process with an opportunity to negotiate a new concession agreement for county-owned Laguna Seca, including the iconic raceway writes Jim Johnson of the Monterey Herald.

In a statement issued Friday, the county announced the Board of Supervisors had directed staff to "negotiate initially" with the Friends of Laguna Seca for a new concession agreement for the county park off Monterey-Salinas Highway. If an agreement is reached, it would be considered by the board in a public meeting. At the same time, the statement also left the door open for the other bidding groups to be offered an opportunity to negotiate if talks with Friends of Laguna Seca fall through.

"A final decision on a concession will depend on the ability to reach mutually agreeable terms, and require Board of Supervisors approval in a public session," the statement read. "While initially the county will negotiate with Friends of Laguna Seca, all other potential candidates are still seen as viable candidates."

The statement also indicated the competitive process and all documents submitted by the groups would remain confidential until a final agreement is reached.

In addition to Friends of Laguna Seca — the lone nonprofit to vie for the Laguna Seca concession, two for-profit entities participated in the competitive bidding process, including Daytona, Florida-based stock car racing firm International Speedway Corp. in partnership with longtime raceway operator the Sports Car Racing Association of the Monterey Peninsula, and the World Automotive Championship of California backed by Long Beach Grand Prix founder Chris Pook.

The months-long process included a request for expressions of interest, a request for qualifications, a request for service proposals, and several weeks of additional review, as well as plenty of public posturing by the bidder groups.

Supervisor Simon Salinas said he believed Friends of Laguna Seca submitted the best overall proposal of the three groups.

Friends of Laguna Seca "seemed to have a good sense of what the local community wants in terms of operating within existing parameters," Salinas said.

Friends board president Ross Merrill confirmed the group had been invited to submit more information about their management proposal as part of what he called the "early stages of negotiation" for a new agreement. Initial talks were to begin Friday, he said.

"We appreciate the county's confidence in us and we hope to reach a mutually beneficial agreement," Merrill said. "I think our local nature and nonprofit (status) is a big positive."

The organization's Laguna Seca proposal, according to its website, friendsoflagunaseca.org, includes a "25-year commitment to rebuild the (Laguna Seca) complex and implement a new business model," including undertaking a $50 million capital improvement fundraising campaign with $25 million invested in the first five years, establishing a "profitable mix" of events, "maximizing" sponsorship opportunities and racetrack rentals, upgrading the camping areas and rifle-pistol range, and bringing in new events and "premium programs" to increase the park's usage within existing constraints.

Supervisor Dave Potter said "conditions may be challenging" for the Friends of Laguna Seca group, and noted there's still "much work to be done before an agreement is signed," adding that he hopes the other groups will still be available if talks with the Friends of Laguna Seca fail. Jim Johnson/Monterey Herald