January 27TH, by Heritage Office Suites, No Comments

Circuit of The Americas: A Boost to the Austin / Round Rock Economy

 

Circuit of the AmericasCircuit of The Americas

Few things have the power to shake a local economy as fast as a sporting event. And when we are talking about an event like the Formula 1, that is watched by an estimated 520 million viewers around the world, then we really mean big leagues. It was in 2007 that a Formula 1 race was hosted in the USA for the last time. But this time it was different, for the first time, the USA built the Circuit of the Americas for the world class event.

Everything about Texas is big, they say, well this really is a big deal. Not only did it generated jobs and stimulated the local economy before the event, but it also attracted fans and media attention during the event, and will keep on doing so in years to come. The following article shares some of the impressive numbers associated with the construction and opening of the Circuit of The Americas:

 

 

ECONOMIC IMPACT

 

Circuit of The Americas is a new world-class motorsports and entertainment venue in Texas, located nine miles from Austin-Bergstrom International Airport and less than 15 miles from downtown Austin.

Circuit of The Americas is more than a track – it is designed to be the only purpose-built facility in the U.S. to host the FORMULA 1 UNITED STATES GRAND PRIX™ through 2021 and V8 SUPERCARS from 2013-2018. It will be the only FIA-certified Grade 1 track in the United States, and one of only 26 Grade 1-certified motorsports facilities in the world. The circuit currently holds exclusive rights in the United States to host a V8 SUPERCARS event.

The venue is expected to draw hundreds of thousands of fans from all over the world and be seen by approximately 30 million television viewers across the globe for the FORMULA 1 UNITED STATES GRAND PRIX™ while also hosting dozens of high-profile motorsports, entertainment and business events each year. CoTA will also serve as a leader in sustainability as it relates to major event venues and motorsports, through high-performance operations, design, research, education and partnerships.

CoTA-hosted events are projected to generate an annual economic impact of $400 million to $500 million, equating to $4 billion to $5 billion over 10 years for Texas. The CoTA-hosted FORMULA 1 UNITED STATES GRAND PRIX™ will attract as many as 300,000 people each Grand Prix weekend, with an estimated 80 percent of attendees coming from outside Texas.

 

A NEW ECONOMIC ENGINE FOR TEXAS

 

  1. Fact: Construction of the 375-acre Circuit of The Americas™ project will cost approximately $400 million in private investment and create approximately 1,700 construction jobs. Sixteen Texas-based companies are contracted to work on the project with participation by minority- and women-owned businesses totaling an estimated $50 million.
  2. Fact: Approximately 300 full-time equivalent jobs will be created by Circuit of The Americas. On major event days, more than 3,000 seasonal/event-specific employees will be hired. In total, Circuit of The Americas is expected to create more than 6,000 jobs.
  3. Fact: Circuit of the Americas is paying $13 Million to install water and waste water lines in the “desired development zone” on an accelerated schedule. The City of Austin has stated its desire to own the lines — so as with every commercial or residential development — will reimburse Circuit of the Americas following the installation.
  4. Fact: Approximately 800,000 to 1.2 million people are expected to attend events at Circuit of The Americas annually once the venue is fully operational with the average out-of-state visitor spending $1500 per day (average stay of 4.6 days).
  5. Fact: A Formula 1 season is viewed by an estimated 520 million people in 187 countries. Each race is broadcast to more than 30 million viewers. The three hours of coverage is equivalent to more than $200 million in commercial advertising.

NOTE: To date, State money has not been paid to the developers of Circuit of The Americas and no local community, including the City of Austin, is providing incentive funding to the developers. As is the case with the Super Bowl, NCAA Final Four and other large-scale events in Texas, the Formula 1 event is eligible for expense reimbursements from the state’s Major Events Trust Fund. This reimbursement is performance-based and may be applied for after the first event in November 2012. Any state reimbursement is based on the amount of incremental tax revenue generated by event-related activity that would not have come to Texas if the event were not here.

 

Written by: Heritage Office Suites

Our mission is to provide entrepreneurs, freelancers, startups and businesses of all sizes with a collaborative office environment, along with the on-demand services needed, to be more productive and innovative. Our all-inclusive workspaces are a cost-effective alternative to traditional office space that allows your business to thrive while staying lean and nimble.