Post by hudman378 on Feb 2, 2011 20:22:05 GMT -5
From the Yuba City Appeal-Democrat: The new operator of a motocross track in Marysville is $60,000 in arrears to Marysville just four months into his contract, sparking criticism that city officials should not have signed him on. Todd H. Nelson of Loomis once had plans for a $109 million motocross complex in Placer County that never came to fruition. Nelson is in Chapter 7 bankruptcy proceedings for debts totaling more than $11 million. Nelson has been notified by mail about his two overdue payments of $30,000 each as specified in his lease agreement.
The city has not yet received a formal response, but Nelson is scheduled to meet today with City Services Director Dave Lamon about another part of his contract — a clause that requires work on a new bathroom facility to start within 30 days. That deadline passed three months ago.
"I'm really sore about this," said Peter Brown, general sales manager at Roseville Yamaha. "This guy rolled into town and was able to get the lease on that track without any qualifications. They should have checked him out."
Lamon said Tuesday he was aware of Nelson's financial problems prior to recommending his bid to the City Council last September. "I don't know how this necessarily pertained to what we were doing," he said of Nelson's failed plan to build a sports complex west of Lincoln near Thunder Valley Casino. "He was building a new facility, and our facility is already developed."
California Motocross LLC, Nelson's company, filed for Chapter 11 bankruptcy — reorganization — in September 2008 and for Chapter 7 — liquidation — last year. Among his long list of creditors is Blue Lake Rancheria, a tribe-owned economic development corporation in Humboldt County, which he owes nearly $7 million. Nelson's deal with Marysville "is an interesting development all the way around in light of the bankruptcy," said Jana Ganion, the spokeswoman for Blue Lake Rancheria.
A highly competitive bidding war had preceded Nelson's selection for the city contract, with some well-known regional motocross figures also vying for the deal. Brown and others said they were stunned when Nelson submitted a $120,000 -per-year bid — twice as high as the next highest bid from a local motorcycle dealer. Brown has a promotions deal with Scott Davis — the previous operator of Riverfront Park. Brown, along with at least a half dozen other MX businessmen, has a vested interest in the property's future.
Nelson's deal is similar to the one Davis made with the city in 2007. Davis, who operates E-Street MX, relinquished Riverfront Park in spring 2010, citing a failure to make payments in a difficult economy. He asked for a reduction in rent for the remaining six months as operator, a request denied by the city.
Davis also operates a state-owned facility and was a bidder for the new Marysville contract in September. He had operated the track since 2007. He had signed a 10-year $120,000 a year rent bid that City Manager Steve Casey said at the time was three times as what the city made under 30-year operator Charlie Sexton.
But the economy was still booming then. "They've seen a decline in participation," Lamon said of motocross tracks during the recession. "A decline in disposable income means a decline in recreation dollars."
The city has not yet received a formal response, but Nelson is scheduled to meet today with City Services Director Dave Lamon about another part of his contract — a clause that requires work on a new bathroom facility to start within 30 days. That deadline passed three months ago.
"I'm really sore about this," said Peter Brown, general sales manager at Roseville Yamaha. "This guy rolled into town and was able to get the lease on that track without any qualifications. They should have checked him out."
Lamon said Tuesday he was aware of Nelson's financial problems prior to recommending his bid to the City Council last September. "I don't know how this necessarily pertained to what we were doing," he said of Nelson's failed plan to build a sports complex west of Lincoln near Thunder Valley Casino. "He was building a new facility, and our facility is already developed."
California Motocross LLC, Nelson's company, filed for Chapter 11 bankruptcy — reorganization — in September 2008 and for Chapter 7 — liquidation — last year. Among his long list of creditors is Blue Lake Rancheria, a tribe-owned economic development corporation in Humboldt County, which he owes nearly $7 million. Nelson's deal with Marysville "is an interesting development all the way around in light of the bankruptcy," said Jana Ganion, the spokeswoman for Blue Lake Rancheria.
A highly competitive bidding war had preceded Nelson's selection for the city contract, with some well-known regional motocross figures also vying for the deal. Brown and others said they were stunned when Nelson submitted a $120,000 -per-year bid — twice as high as the next highest bid from a local motorcycle dealer. Brown has a promotions deal with Scott Davis — the previous operator of Riverfront Park. Brown, along with at least a half dozen other MX businessmen, has a vested interest in the property's future.
Nelson's deal is similar to the one Davis made with the city in 2007. Davis, who operates E-Street MX, relinquished Riverfront Park in spring 2010, citing a failure to make payments in a difficult economy. He asked for a reduction in rent for the remaining six months as operator, a request denied by the city.
Davis also operates a state-owned facility and was a bidder for the new Marysville contract in September. He had operated the track since 2007. He had signed a 10-year $120,000 a year rent bid that City Manager Steve Casey said at the time was three times as what the city made under 30-year operator Charlie Sexton.
But the economy was still booming then. "They've seen a decline in participation," Lamon said of motocross tracks during the recession. "A decline in disposable income means a decline in recreation dollars."