INDIANAPOLIS, Thursday, Dec. 2, 2004 - In the same fashion that methanol fuels the 650-horsepower engines of sleek, 220-mph IRL IndyCar® Series cars, the motorsports industry powers an important segment of the Indiana economy.

That is the theme of the "Economics of Motorsports," two workshops sponsored by the Indianapolis Motor Speedway and taking place in conjunction with the National League of Cities convention this week in Indianapolis. Individual workshops took place Wednesday, Dec. 1, and Thursday, Dec. 2.

More than 4,000 attendees, including mayors, city council members and other community officials from cities around the United States, are in Indianapolis from Nov. 30-Dec. 4 for the NLC convention.

The "Economics of Motorsports" workshops are providing NLC delegates with a glimpse of Indianapolis' large base of motorsports industry and its economic impact in areas such as tourism, employment and technology.

The tours include a drive-through of the world-famous Indianapolis Motor Speedway and the motorsports "cottage industry" on Gasoline Alley Drive, a walking tour of racing performance parts supplier C&R Racing, Inc. with company Founder and President Chris Paulsen and a featured discussion with motorsports and economic development leaders at the headquarters of two-time IRL IndyCar Series championship team Panther Racing.

Discussion participants for Wednesday were Matt Steward of Governor-elect Mitch Daniels' transition team, Buddy Lindblom, team manager of Panther Racing, and Joie Chitwood, senior vice president, business affairs for IMS.

Chitwood served as general manager of Chicagoland Speedway before assuming his current position at IMS and guided the development of that facility from 1999-2002, so he is familiar with the challenges and benefits of developing a racing facility as well as marketing it, promoting it and selling sponsorships.

Tracks like Chicagoland have quickly brought benefits to the local community, something that Indianapolis has relished with the Indianapolis Motor Speedway since it was built in 1909. With three world-class events at the Speedway each year now - the Indianapolis 500, Brickyard 400 and United States Grand Prix - the economic impact numbers are staggering.

"It was conservatively estimated that (IMS), with those three events, provides $727 million dollars to the economy of Indianapolis," Chitwood said.

Racetracks are unique in the type of dollars they bring to a community, Chitwood said. While local sports franchises such as professional basketball and football teams bring in dollars from local residents, racetracks draw from all over the country - and world, for that matter.

"(Talking) about other sports properties, it's a dollar that's probably already going to be spent in that town," Chitwood said. "What racetracks really do is draw people from at least 300 miles away.

"What motorsports does is it brings people to town, and it's that dollar that comes from outside the community that provides the greatest impact."

Steward outlined the Indiana Motorforce Initiative, which the administration of Daniels plans to aggressively use to further develop the already impressive motorsports industry in Indiana.

"This is an incredible industry for the state of Indiana, and even though we have the heritage that we have in Indiana for motorsports, due in great part to the Indianapolis Motor Speedway, we still have a lot of work to do from an economic development standpoint," Steward said.

"We are developing the Indiana Motorforce Initiative. Just this year, with a new governor, Indiana is going to have the first proactive, on a statewide level, initiative to increase our motorsports business base."

Steward said the executive branch of Indiana's government will create a full-time director of motorsports development in the state's economic development corporation, with that director reporting to the secretary of commerce.

"Their sole responsibility will be to go out and call on professional race teams, suppliers, engine manufacturers and other ancillary businesses that are important for racing teams and the industry," Steward said.

Updated tax codes and incentives to reflect the state-of-the-art computer systems in use by teams, extending tax credits to businesses both in and relocating to Indiana, and many other areas of economic development are all in consideration, Steward said.

Perhaps the boldest initiative the Daniels' administration has in mind is to create certified technology parks for motorsports.

"We're looking forward to partnering with Indianapolis Motor Speedway, teams like Panther Racing, other important suppliers and manufacturers in the industry to create a certified technology park where we can invest in research and development for the important advancements needed in this highly competitive industry," Steward said.

The second and final "Economics of Motorsports" workshop took place Dec. 2 with another visit to IMS, a tour of C&R Racing with Paulsen, and a discussion at Panther Racing with Steward, plus Ron Anderson, general manager of Indianapolis Raceway Park, and Gary Pedigo, co-owner of Panther Racing.

Courtesy IRL PR

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