Mike Griffith: Backers seek private investors for racetrack
| Thursday, Jul 17 2008 02:45 AM
Last Updated Friday, Mar 27 2009 06:14 PM
With creditors becoming more assertive, backers of the stalled Kern River Raceway are seeking private investors to get the racetrack back in gear.
Construction started on the half-mile paved oval situated on 83 acres of land at the southwest corner of Enos Lane and Interstate 5 in February 2007 but ground to a halt shortly after Christmas 2007 under mounting debt and a lack of funding due to a defaulted land deal.
Five companies have filed either mechanic’s liens and/or lawsuits totaling nearly $2.2 million in unpaid bills against Kern River Raceway.
“All those people have to make sure they protect themselves first,” track president Larry Collins said of recent lawsuits filed by Irv Guinn Construction, Shaff’s Construction and Calmat Co., as well as other liens on the property. “Those companies are owned the money and they need to do what’s appropriate to protect themselves to make sure they get that money.
“We feel terrible they weren’t paid at the times services were provided ... but the financing ran out. We do appreciate them working with us and as soon as we raise all the money necessary, the first dollars will go to pay off the debt to the contractors.”
Track backers have been unable to secure traditional financing to complete the project and Collins is now trying to sell 32 private equity shares at $1 million each to raise the $32 million to pay debts, finish the facility and have some operating capital.
“We’ve been pursuing (the individual investor) angle for about six weeks now and are pleasantly surprised in how many people are interested in being a part of the project,” Collins said. “We’re about two-thirds of the way there.”
Part of the selling point is potential commercial development on land adjacent to the track along the Enos Lane corridor between Interstate 5 and Taft Highway.
“Getting enough money to pay the debt and finish the track is the objective,” Collins said. “The day we acquire enough funds to take care of the debt and finish the track is the day we’ll move forward.”
Having been caught short on cash once, Collins said almost all of the money needed would have to be accounted for before the facility could get back on track to completion.
“It only works if get get all the funding to get to a point where we can get the wheels in motion to be back up and running,” he said. “We’re moving in the right direction.
“It’s hard to say if we’ll accomplish our goal, but everyone is trying as best they can. Hopefully what we’re doing will solve everybody’s problems.”
If funding can be secured, Collins said it would take about seven months to finish the facility.
QUICK SHIFTS
• IMCA Modifieds, Street Stocks, American Stocks, Mini Stocks and the NMRA 3⁄4 Midgets will be in action Saturday night at Bakersfield Speedway. Racing starts at 6.
• Point leader Eric Holmes raced to victory Friday in a NASCAR Camping World Series West race at Douglas County Speedway in Roseburg, Ore. He was followed by Johnny Bornerman, Jason Bowles and Bakersfield’s David Mayhew.
