Post by Mr Moto on Mar 2, 2011 19:53:33 GMT -5
ANOTHER OWNER ABANDONS RIVERFRONT PARK MOTOCROSS TRACK
According to Nancy Pasternack at the Appeal-Democrat: The new operator of a once-successful motocross track in Marysville, California, has abandoned the facility, leaving the city empty-handed for the second time in a year. Todd H. Nelson of Loomis, California, signed a contract for the track known as Riverfront Park five months ago. The contract was similar to one forfeited by his predecessor several months earlier. The $120,000-per-year agreement allowed for one deferred quarterly payment on the understanding that Nelson would make some $30,000 in improvements to the property. Those were still not underway when his first payment of $60,000 came due in January.
Nelson failed to respond to a 10-day notice sent by the city early in February for violating the terms of the contract. Public works personnel noticed over the weekend that the facility had been shut down. "They've apparently pulled up stakes," said City Manager Steve Casey. Nelson could not be reached for comment. His financial troubles, familiar to most in the business of Northern California motocross, preceded him in his Marysville venture. Nelson had planned to build a $109 million motocross complex in Placer County near Thunder Valley Casino. But the project failed to materialize in the wake of the recession, and Nelson's holdings are currently in Chapter 7 — liquidation — bankruptcy. Among his creditors is Blue Lake Rancheria, a tribe-owned economic development corporation in Humboldt County, to which he owes nearly $7 million.
But in September, when Marysville officials were considering bidders for their Riverfront Park contract, Nelson's bid of $120,000 appealed to them. "It's prudent for the city to get as much money as it can," Casey said of the City Council vote to approve Nelson's bid. Awarding the contract to Nelson, "may have been a mistake in retrospect," he said. The next highest bid was for roughly half of what Nelson promised, and came from Yuba City businessman Tony Milner of Honda/Yamaha Sports Center. "We thought Tony's bid was high," said Carl Allison, owner of Twin Cities Motorsports in Marysville. He and other motocross aficionados were more than a little surprised, he said, when they learned what Nelson had bid. "We came to support Tony. We thought it was best to keep it (the operation) local," Allison said of his presence at the meeting when the vote took place.
Scott Davis, who still operates another motocross track in town, had been unable to make payments as per his own $120,000-per-year contract on the Riverfront Park property. As a result, he had terminated his 10-year agreement only three years in, opening up the track for other bidders. Davis has said he will not speak to the Appeal-Democrat. He also declined to be interviewed by Chico writer Aaron Hansel for an article posted on his Vision-mx.com, a website devoted to Northern California motocross news, and which featured several area motocross notables.
In that article, Nelson answered a question about how he would manage the Marysville contract in light of his ongoing financial troubles in Placer County. "Consistent operation of the facility as a multiple track park venue that has retail and food sales components will more than cover the bills," Nelson said of Riverfront Park.
According to Allison, the expectation that Nelson could meet the terms of the Marysville contract was unrealistic. "Guys nowadays don't have the money to spend on this," he said of the sport. "They spend it now on gas and on food. Everything got pretty much got cut in half," he said of motocross-related profits during the recession. "That's why the city doesn't get paid — because the head count is way down." Also, he said, because city officials ignored the expertise of locals who are in the motocross business. "They weren't even listening to us," he said of the bidding battle in September. "They went right for the big dollar signs."
The track had been run locally for decades before Davis outbid the former operator in 2007, and had been popular throughout the region. Riverfront Park saw hundreds of riders every day that it was open, according to Allison. A combination of the bad economy and new, higher fees imposed by Davis, he said, led to the track's demise. "But the hard core guys still need a place to practice," Allison said. "If a guy was reasonable, it (the track) would draw a lot of riders back."
What's "reasonable" for riders, and what the city needs to charge an operator to make a contract worthwhile, said Casey, may be mutually exclusive numbers. The years before Scott Davis were not profitable years on the city's end. "We weren't making anything on it before then," he said. Marysville would do well, said Allison, to settle on more modest returns in the future, and beware of deals from the likes of Davis and Nelson. "These guys have been promising the city way too much money," he said.
According to Nancy Pasternack at the Appeal-Democrat: The new operator of a once-successful motocross track in Marysville, California, has abandoned the facility, leaving the city empty-handed for the second time in a year. Todd H. Nelson of Loomis, California, signed a contract for the track known as Riverfront Park five months ago. The contract was similar to one forfeited by his predecessor several months earlier. The $120,000-per-year agreement allowed for one deferred quarterly payment on the understanding that Nelson would make some $30,000 in improvements to the property. Those were still not underway when his first payment of $60,000 came due in January.
Nelson failed to respond to a 10-day notice sent by the city early in February for violating the terms of the contract. Public works personnel noticed over the weekend that the facility had been shut down. "They've apparently pulled up stakes," said City Manager Steve Casey. Nelson could not be reached for comment. His financial troubles, familiar to most in the business of Northern California motocross, preceded him in his Marysville venture. Nelson had planned to build a $109 million motocross complex in Placer County near Thunder Valley Casino. But the project failed to materialize in the wake of the recession, and Nelson's holdings are currently in Chapter 7 — liquidation — bankruptcy. Among his creditors is Blue Lake Rancheria, a tribe-owned economic development corporation in Humboldt County, to which he owes nearly $7 million.
But in September, when Marysville officials were considering bidders for their Riverfront Park contract, Nelson's bid of $120,000 appealed to them. "It's prudent for the city to get as much money as it can," Casey said of the City Council vote to approve Nelson's bid. Awarding the contract to Nelson, "may have been a mistake in retrospect," he said. The next highest bid was for roughly half of what Nelson promised, and came from Yuba City businessman Tony Milner of Honda/Yamaha Sports Center. "We thought Tony's bid was high," said Carl Allison, owner of Twin Cities Motorsports in Marysville. He and other motocross aficionados were more than a little surprised, he said, when they learned what Nelson had bid. "We came to support Tony. We thought it was best to keep it (the operation) local," Allison said of his presence at the meeting when the vote took place.
Scott Davis, who still operates another motocross track in town, had been unable to make payments as per his own $120,000-per-year contract on the Riverfront Park property. As a result, he had terminated his 10-year agreement only three years in, opening up the track for other bidders. Davis has said he will not speak to the Appeal-Democrat. He also declined to be interviewed by Chico writer Aaron Hansel for an article posted on his Vision-mx.com, a website devoted to Northern California motocross news, and which featured several area motocross notables.
In that article, Nelson answered a question about how he would manage the Marysville contract in light of his ongoing financial troubles in Placer County. "Consistent operation of the facility as a multiple track park venue that has retail and food sales components will more than cover the bills," Nelson said of Riverfront Park.
According to Allison, the expectation that Nelson could meet the terms of the Marysville contract was unrealistic. "Guys nowadays don't have the money to spend on this," he said of the sport. "They spend it now on gas and on food. Everything got pretty much got cut in half," he said of motocross-related profits during the recession. "That's why the city doesn't get paid — because the head count is way down." Also, he said, because city officials ignored the expertise of locals who are in the motocross business. "They weren't even listening to us," he said of the bidding battle in September. "They went right for the big dollar signs."
The track had been run locally for decades before Davis outbid the former operator in 2007, and had been popular throughout the region. Riverfront Park saw hundreds of riders every day that it was open, according to Allison. A combination of the bad economy and new, higher fees imposed by Davis, he said, led to the track's demise. "But the hard core guys still need a place to practice," Allison said. "If a guy was reasonable, it (the track) would draw a lot of riders back."
What's "reasonable" for riders, and what the city needs to charge an operator to make a contract worthwhile, said Casey, may be mutually exclusive numbers. The years before Scott Davis were not profitable years on the city's end. "We weren't making anything on it before then," he said. Marysville would do well, said Allison, to settle on more modest returns in the future, and beware of deals from the likes of Davis and Nelson. "These guys have been promising the city way too much money," he said.