Tax breaks approved for Canadian Motor Speedway
The council approval, which had been anticipated, now makes the Jeff Gordon-designed race track — set for an 820-acre Bowen Road site in Fort Erie — eligible for Ontario-sanctioned incentives and development charge reductions. Under the terms of the Niagara Gateway Economic Zone and Center Community Improvement Plan, the track will receive tax breaks ranging between $1.4 million and $1.8 million annually for a 10-year period and a $1.5 million development charge reduction for the first phase of the project.
The incentives would apply only to the project's first phase, the three-quarter mile main speedway and two-mile road course along with some related facilities. Those equal about 43 percent of the complex's total footprint.
Other components include an automotive and racing research and development center run in conjunction with such entities as McMaster University in Hamilton, Ont. The complex would also have 185 acres of parking and campgrounds and 75,000-square-feet of commercial space.
A 65,000 person grandstand that includes 40 private suites is also planned.
Other municipal and provincial issues still need to be resolved include those centered on the Bowen Road exit off of the QEW. Those may be resolved this spring.
Also at issue is whether the Bowen Road bridge along the QEW needs to be expanded from its current two lanes to four lanes. The bridge, which dates back to the 1950s, is the last original bridge on the QEW that has not been replaced.
Ontario officials estimate it would cost $38 million to rebuild and expand the bridge and they want the speedway's developers to bear the cost. However, a traffic study conducted by the speedway development team indicates the two-lane bridge would suffice.
Officials hope to start construction later this year and have the track race-ready by the 2017 season.
"The vote was significant in the sense that it's the first time CMS has ever received measurable and material support from the Niagara Region during the last eight years," said Azhar Mohammad, Canadian Motor Speedway partner and executive director. "The region clearly understands the tremendous positive impact CMS will have for its residents and has made the right decision in investing in our collective futures."
Studies show the track could have a $430 million immediate economic impact on Fort Erie and the Niagara Region.
"This project rings all the bells with respect to economic growth and prosperity for our community," said Fort Erie Mayor Wayne Redekop. Buffalo Business First