VTA sues San Jose Grand Prix for non-payment

The defunct San Jose Grand Prix has failed to pay a $220,000 bill for bus services, according to a lawsuit filed this week by the Santa Clara Valley Transportation Authority.

Although the race received a large and controversial $4 million, two-year public subsidy from San Jose taxpayers, race operators were obligated under a contract with VTA to cover the transportation agency's costs for replacing downtown light rail services during the annual race weekend. The street race course prevented trains from traversing downtown.

While the race paid VTA in 2005 and 2006, it has not paid its $220,000 bill for 2007, which was due by Aug. 31. Race President Dale Jantzen said Friday VTA and all other vendors owed money would be paid by July.

"We're committed to fulfilling all of our obligations to suppliers and vendors as we sell off the assets we have," Jantzen said. Those assets include office equipment and race course materials such as barriers, fencing and grandstands.

The race operator, San Jose Open Wheel Racing LLC, is owned by Silicon Valley philanthropist and executive Don Listwin. The Grand Prix announced in September that it was shutting down, saying the expected construction of new office buildings on Almaden Boulevard would eliminate the race's primary grandstand area. Whether that development actually will proceed remains unknown. Mercury News