I posted an entry on Senator Kirk Watson’s Facebook page and quickly received a response from him. It is regarding his role in the proposed Formula One race track in Del Valle.
Sen. Watson: Robert, thanks for your kind words. Please know that there will be a great deal of input on this project before any state incentives can go to this project.
There’s been a lot of misinformation floating around. In fact, I have been frustrated by the level of misinformation. But know this:
– My bill – Senate Bill 1515 in the 81st Session, which I strongly encourage you to read – requires either the city or county to endorse any project eligible for incentives, either directly or through a non-profit organization they designate. This is tool for local governments, not sporting events. No matter what has been said so far, the law requires involvement and approval from local officials before any incentives can be granted.
– My bill last year went through the normal, open legislative process – hearings in both chambers, open floor votes, etc. It was the subject of scrutiny and input at the time.
– The bill concerned only the general policy question of whether the state should treat events like Formula 1 racing the way it treats things like the Super Bowl – and on a statewide basis.
– F1 will qualify ONLY for the state incentives equal to an amount that the event is projected to put back into the state’s coffers though increased tax receipts. Ideally, these projects would prove to be a net win for Texas and the budget – but they legally shouldn’t be any worse than a break-even proposition.
– The money appropriated to the Major Events Trust Fund is not a recurring obligation. The $25 million that’s been discussed in connection with F1 was a one-time commitment to put money into a revolving fund that will make this program work – like money sitting in a bank vault waiting to be loaned out, money that’s later replenished through tax receipts. So the alleged $250 million, 10-year figure does not require a series of annual $25 million appropriations; it simply requires tax receipts related to the event to come back into the state’s coffers, replenish the fund, and then be reimbursed back out (depending on how much revenue the Comptroller finds will be created through the event in future years).
– Finally, my support of this legislation is entirely separate from any particular project – again, the legislation covers all of Texas, while the F1 project discussed today concerns just our region.
Let me be clear: the organizers of this project must demonstrate how the community will benefit from it – how the project will be good for residents and neighborhoods near the facility, our school kids, our educational institutions, our research and development capacity, our creative communities, and our environment. These are questions we all should be asking, and issues we all should be evaluating, as we consider whether to support this project.
I’m optimistic that the organizers will demonstrate these benefits – I always expect economic development projects to actually develop the economy, helping far more people than those who stand to reap the immediate windfalls, and over a long period of time.
But it remains incumbent on organizers to show how they’ll do that. They’ve begun to provide answers about this project and how Austin might benefit, but there’s more we all need to know. Today’s announcement, I hope, was simply the beginning of that process.
Again, if you haven’t already, please read the text of the bill I passed; it was Senate Bill 1515 in the 81st Legislative Session. You can pull up a copy here.
Thanks for your interest and your concern. I hope you’ll stay involved in this process.
Kirk Watson
