| Frequently Asked Questions About The Capital Campaign & HPR |
The loss of Second Creek Raceway at the end of the 2005 race season has severely compromised the scheduling and growth opportunities for all the clubs which used that local facility for so many years. Consequently the development of a new race facility has been undertaken, with efforts and planning dating back to before the closure of Second Creek. We hope that the following extensive FAQs will answer your questions regarding this important project. A club sponsored, owned and operated motorsports facility for the Denver metro and Front Range enthusiast is believed to be an essential element to the future of amateur road racing in Colorado. If you have other questions, don't hesitate to ask.
Please note you can download/view this FAQ in PDF format here.
The Capital Campaign to raise money for the new HIGH PLAINS RACEWAY (HPR) is the product of CAMA.
What is CAMA?
CAMA (Colorado Amateur Motorsports Associates) is the entity created by the group of five clubs which were the majority users of Second Creek. These clubs are Motorcycle Roadracing Association (MRA), Porsche Club of America, Rocky Mtn. Region (PCA-RMR), Rocky Mountain Vintage Racing (RMVR), the Colorado Region of the Sports Car Club of America (SCCA), and the Multi-Car Club Alliance (MCCA). The Multi-Car Club Alliance is a collective of eight other car clubs, specifically: the Alfa Romeo Club of Colorado; Audi Club; BMWCCA, Rocky Mountain Chapter; Colorado Exotic Car Association (CECA); Lotus Colorado; Mercedes Benz Club of America, Mile-High Section; Viper Club, Colorado Region; and the Z-Car Club of Colorado.
How long has CAMA been around?
CAMA was formed in 2003 by the same five clubs who purchased the Second Creek lease in 1998 and managed SCR until its demise in 2005. The sole purpose of CAMA was to find and promote a replacement facility for Second Creek. CAMA has been working diligently on that goal since its formation.
How is CAMA run?
Over the years, each of the five club members had a designated working representative. These representatives have kept their respective club Boards informed about all CAMA decisions and voted on all CAMA issues with guidance from their respective club Boards. As project sites were being considered and as a business plan was being created, it was shared with, and input taken from, all respective Club Boards. Also, CAMA has provided continuous regular financial statements to the respective club Boards.
Is the proposed HPR the only facility they've considered?
Hardly. Probably 40 different sites of varying viability were inspected or considered. However, only three were considered viable. Two potential projects reached the point of taking measures to obtain options on those specific properties, but both of those were abandoned for various reasons. As it turns out, aside from the delay in finding a site, this may have been a blessing in disguise since the current HPR project has so much going for it.
Aren't there other private track developments which might serve road racers?
Yes, there are other private track proposals out there. But "might" is the operative word. Will those facilities be built? When will they be built? Many are still seeking capital or investors. And the question remains if and when those private tracks will be available and then what track rental rates might be. We don't know the answers to those questions. As you can see, those are a lot of important "ifs." CAMA, as represented by the underlying club members, felt it important that the clubs control their own track destiny by owning their own facility - thus this project.
Why does CAMA think they can pull off this project?
First of all, there is the collective conclusion that we MUST pull it off in order to control our own destiny. But more important, the collective five-club group, operating as a DBA of CMC, successfully "pulled off" rescuing and operating the old Second Creek facility. With a $100,000 collective club investment in 1998 (i.e. each of the five clubs provided $20,000), the five clubs formed the Second Creek Committee which took over the lease of that track, purchased track assets from the previous lease holder, and successfully operated Second Creek over the ensuing seven years. That successful effort kept the track open for several years, maintained it, and in the process accumulated a substantial surplus (more on that later) over those years. So, the local amateur road racing community actually does have a successful "track record" of operating a track. Also, while this isn't California, years ago the SCCA San Francisco Region was able to undertake a similar single club effort creating the fantastically successful Thunderhill. So, it can be done.
Why has there been little news on the progress of this project until now?
As many of you well know and understand, details have been purposely kept low key until the important zoning issue was firmly in hand. It made no sense to be "public" with progress until several key elements were in place. Those key elements were finding a site, getting an option on the property to control it, getting the zoning assured (a key element), creating a site plan with preliminary track layout, etc., etc., etc. Keep in mind, during this whole process each CAMA representative HAS kept their respective Boards informed about every step of this very complex and important undertaking. Those Boards and clubs have shared the feeling that "cheerleading" before now would have been premature and perhaps even counterproductive to success.
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| General Description of the Project |
Where is HIGH PLAINS RACEWAY located?
The facility will be located on U.S. Highway 36, 17 miles east of Byers. This is 60 miles (and less than one hour) east of the I-25 & I-70 interchange, known locally as the Mousetrap. At the Byers, exit I-70 (which bends to the south towards Limon) taking Highway 36 due east 17 miles. While this may appear to be a long way out there, finding appropriate property which isn't subject to housing development encroachment, where the land price is affordable, and which has good access all necessitated going east. As Denver area amateur motorsports enthusiasts, we were all spoiled by Second Creek's fantastic proximity. HPR is only about 30 minutes east of Second Creek and far closer and easier to get to than LaJunta and Pueblo.
How large is the property?
BIG! The rectangular site is 460 acres! (For a frame of reference, the Second Creek property was only 55 acres.). Phase I of the project will only need to use about half of the acreage. For perspective, that half is an area slightly larger than the Pueblo road racing area.
Gee, the site is out east. Is it flat and ugly?
Well, it's not flat! And that is the real "beauty" of the site. It has marvelous rolling terrain features meaning that the track will have several significant elevation changes - the most important feature of memorable race tracks. While the terrain is rolling, there are adequate flat areas for a large paddock and, eventually, an autocross/skid pad. Trees can be planted. In the meantime, bring shade.
How long is the track?
The current track configuration (subject to refinement) is about 2.5 miles (similar to Pueblo's length) with 15 turns and, as mentioned, several places where there will be meaningful elevation changes which makes for a memorable track!
Sounds wonderful. When can we go racin'?
At the risk of being flip, not until the track gets built. And, the track can't be built until we have the money in hand. However, the time line for being able to race is largely a function of getting the Use By Special Review (USR) approved by the county. The USR was submitted to Arapahoe County August 10th, 2007. This will be the last step in the regulatory entitlement process. When approved (hopefully before year-end 2007) the status of the Capital Campaign will then determine when we can lay asphalt. As of this writing, expectations are that we will be able to race at HPR sometime in 2008.
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So, how much is it going to cost us?
You ready for this? The Phase I (Basic) plan will cost about $2,800,000. (Gulp! Nobody ever said racin' was cheap.) Seriously, to create a facility of which we can genuinely be proud, that's what it will cost. Almost 70% of that total is for the track and paddock work. Paving is really expensive.
Yikes! Can we afford that?
The real question is, can we afford not to do it? But without going into the compelling arguments about controlling our destiny, there is some encouraging news of affordability. First, CAMA already has about $850,000 in the bank.
Where did that money come from?
We can thank the successful operation of Second Creek for about $695,000 of the current cash on hand. This is the amount of accumulated surplus which was refunded to each club (1/5th to each) as a rebate on track fees paid while the Second Creek Committee operated SCR. The Boards of all five clubs agreed to rollover 100% of those refunds into the new track entity, CAMA, to provide seed money for development of a new track. More recently, the Boards of each of the five clubs also agreed to invest an additional $50,000 each, for a total of $250,000, as additional money to help launch the Capital Campaign. So, CAMA and the clubs already have a substantial head start (about a 35% down payment, if you will) on the cost of this project. Not a bad start.
But, that still leaves a big tab. Where's the balance of the money going to come from?
CAMA has prepared a pro forma business plan for future operation of the facility. The plan uses what are believed to be conservative assumptions for future track utilization, track rental fees (to keep the cost down for clubs' use), Test & Tune revenue, etc. Those pro forma estimates suggest that the project can afford to service (with 10 year loans amortized over 15 years) a significant amount of borrowing. Specifically, the borrowing part of the Capital Campaign expects to raise about $1,400,000. Also, the above total project cost is based on paying cash for everything. We are very fortunate to have racers who are willing and able to donate significant pro bono products and professional services towards this project. In fact, just in the project to date, there has been a significant amount of pro bono services already provided. But, this still leaves a need for about $550,000 to be raised thru donations toward Phase I of the project. But wait! We racers want a few "creature comforts" like real bathrooms, showers, and meeting rooms not included in the Phase I budget. Consequently, the goal of this campaign is to raise at least $1,000,000.
Is that CAMA Business Plan available for me to inspect?
Absolutely. Just surf around this website to inspect that and other documents related to this project.
The business plan posted on the High Plains Raceway website does not include pro forma projections for the proposed facility. Are financial projections available to the members?
Yes. The full Business Plan was submitted to the CAMA member club Boards in August of 2006, including pro forma spreadsheets showing financial projections. These projections were deleted from the condensed version posted on the web site. Since the majority of the data was accumulated during the operation of Second Creek Raceway (SCR), CAMA believes that the data is the property of the clubs and should not be available on the world-wide web. If members have questions regarding the projections, they should contact their CAMA representative. For participating-club members who would like to see the actual pro forma package, you may review the spreadsheets with your representative, but copies will not be distributed.
Even so, general information on the financial projections is available in the documents currently available on www.HighPlainsRaceway.com including:
- A discussion of the pro forma assumptions is presented on page 6 of the Business Plan (as posted on the web site in "The Financial Model for East of Eden").
- Following review by the member Boards, a number of questions were raised and responses were published in the Business Plan Addendum, issued in February of 2007. Specifically, questions 2, 3, 4, 6, 7, and 8 address the concerns raised by the Boards.
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What is the timing of the Capital Campaign?
CAMA is coordinating the Capital Campaign on behalf of all the participating clubs. It will take begin in the summer of 2007. The goal is to raise the $1,000,000 via member donations and to get lending commitments ($1,400,000) in hand (not just pledged).
So, let's cut to the chase! How much is this going to cost me?
Here's the deal. A capital contribution in any amount will be gratefully accepted. Anything from $25 to $25,000. (Yes, there have been early indications of contributions that large!) On average, we're hoping that everyone thinks in terms of making a contribution equivalent to the cost of an average weekend of racing. Some folks spend more than others but, on average, if everyone contributes an amount of that magnitude, we can get this thing done. We recognize that many of you aren't active racers. But as an enthusiast or as a worker, you too have a vested interest in seeing High Plains Raceway come about. The same rule might apply for you - what might you spend on an average weekend? That's a good barometer of a reasonable contribution.
Clearly there are many who are fortunate to be able to contribute more than the above guideline and will do so just because they can. (Advanced kudos to those great people!!) It is hoped that the contributions of those fine folks will help offset those who simply aren't able to contribute. But, as an average, the above suggests a benchmark for you. Each of us must be our own guide.
Why should I contribute at all?
Simple. If you want to be part of the High Plains amateur racing scene in the future, there won't be a club "scene" to be a part of unless we "get 'er done." This Capital Campaign is your chance to be recognized and appreciated as a Founding Contributor to this important club effort. For your contribution, please read the other Capital Campaign printed materials for the recognition perks for varying levels of contributions.
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| How Your Contributions Will Be Handled |
What kind of assurances do I have that my contribution will result in a track actually being built?
Great question! This is important. All contributions received this summer (including your club's recent $50,000 investment) will be credited to a separate account on behalf of you and your club. These funds will NOT be released to the CAMA general fund until very specific conditions are met. These "Construction Release Conditions" were designed to assure you that your contribution will result in a facility being built. Those conditions are:
- That CAMA owns the land. (Just a matter of exercising the option, now in hand. No big deal.)
- That the needed zoning is approved. (This part of the process is now complete as of this writing. The language for the zoning on the property has been amended to include an amateur motorsports facility.)
- That the site plan is approved by the County. (In progress and hopefully done in early 2008.)
- That firm quotes are in hand for the major cost items of this project. (To eliminate concerns that cost over-runs mess things up.).
- And last, but not least, that the Capital Campaign has raised enough money to at least pay for a "Useable Track." (More on this later.)
So, as you can see, if those conditions are met, we will have a track!
Yes, but what if something happens and those conditions aren't met? What happens to my money?
Another great question. While not expected, just like in racin' stuff happens. Something could go wrong. The biggest risk is that insufficient funds are raised thru the Capital Campaign to assure a useable facility. That, however, is in your hands. Please don't let that be the reason for failure. Another thing that could go wrong is failure to get the site plan approved by the county. But, the professional land use people working for CAMA feel that their work so far with the county (who is totally up-to-date on our plans) shouldn't create a monkey wrench. At any rate, here's the clincher for you. If, for any reason, CAMA has to "cut bait" on the HPR project or if by 12/31/2008 all the conditions haven't been met, you get your money back! As already noted, the money is being kept in a separate account and CAMA is tracking who contributed what. If it is necessary to refund your contribution, it will be done. If the above conditions aren't met or if the project can't get started, you get your money back. That would be a sad day, but hopefully this arrangement alleviates your all your concern about contributing.
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| More Detail On the HIGH PLAINS RACEWAY Project and the Capital Campaign |
A "Useable Track" was mentioned above. What exactly is that?
The goal of this Capital Campaign is to raise at least enough money by the end of the summer to fully complete Phase I of the project. The more aggressive goal of $1,000,000 in donations plus the $1,400,000 in loans would provide the funds to completely build the planned Phase I plus some really nice features we all crave, but which we never had at Second Creek. This includes such things as real bathrooms instead of porta-potties, a really nice concession building, a dedicated Tech area, nicer race control facilities, additional paddock paving, electrical hookups for RVs, etc., etc.
However, as a plan B, a "Usable Track" is defined as a Phase I facility without all the full features of the Phase I plan. For instance, less paddock area could be built and a more temporary control tower could be installed. Yes, it would be "useable" and yes we could start racing at the facility with a really nice 2.5 mile track. But that is not what we all want. So, if there is a shortfall in the fund raising, we can still have a "Useable Track." As it turns out those nice extras are about $350,000 of the total. So, if total fund raising is short by that amount, the intent is to still go forward but leave those extras to the future when either additional funds are raised or the operation of the track can afford to add them.
Let's not talk about a funding shortfall. What happens if contributions are greater than expected?
We like the way you're thinking. It could well happen if everyone is generous. If that is the case, there are several options. Less money would need to be borrowed or additional features could be added sooner, or some combination thereof. Lower debt would help future cash flow from operations meaning that future track enhancements could be afforded sooner.
Doesn't taking on this project subject the clubs and its members to substantial liability?
It is for this reason that CAMA was formed as a Limited Liability Corporation (LLC). Further, it is anticipated that yet another corporate entity will be responsible for actual track operation. These separate corporate entities should insulate clubs and members from any liability. Also each entity will have liability insurance. As to financial liability, should the track become unprofitable or not viable for any reason, the track could be sold to outside investors. (This can only happen with a 100% agreement of the original investors-i.e. the clubs.) If huge financial liabilities accrue for some unexpected reason, the clubs are not bound to any "call for capital." Under a disastrous financial outcome, creditors could assume ownership but they have no call on the original investors (i.e. the founding clubs) or you as a donor.
Will there be other future Capital Campaigns?
That is not contemplated at this time. The objective of this campaign is to GET IT BUILT. Once this is done, the business plan calls for all future cash to come from the operation of the facility. That estimated future cash flow is projected to cover normal track maintenance (including a re-paving reserve) and modest improvements and enhancements. Perhaps, if some specific special project (beyond the scope of Phase I) should arises which the regular cash flow couldn't afford, there could be another campaign.
When can we see the track site?
Please contact your club's CAMA representative (see who they are on the Contact Us page of this site). Or you may use the email form on the Contact Us page to request a guided site tour by appointment. Track site tours are available to actually walk the track layout. It is requested that if you visit the site on your own, please don't tromp around on the property unless on a guided tour with a CAMA rep. Farming is still taking place until we exercise our option to purchase the land.
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OK, I'm ready!!!!!! How do I contribute?
If you haven't already, you will be receiving a brochure and payment envelope from your club. Or, you can go to the Capital Campaign page to download the necessary form. It is important that if you are a member of one of the five CAMA member clubs that you designate your contribution as being for your club. These totals are being tracked because technically your Capital Campaign contribution will eventually count toward your club's permanent capital position in the project. If you are a member of a couple of clubs you can split your contribution between your clubs, attributing whatever amount you wish to each of them.
Is this contribution a charitable tax deductible?
NO. Even though your club may be a tax-exempt 501c(7) organization, that it is NOT the same thing as a tax exempt religious or charitable organization. Yes, racin' is almost a religion to many of us, but …. Uncle Sam isn't so generous with 501c(7) Hobby & Social Clubs. We are, however, accepting credit cards. So, while you can't get a charitable deduction, you can sure get the miles on your credit card.
Can I make the contribution from a business account?
Of course you can. Or, if you wish to also make it a valid business deduction, there are advertising opportunities available. Please contact Greg Kyde at 303-485-5588 or Charlie Thompson at 303-665-2506 for details of the promotional/advertising business opportunities for your firm.
Can I make contributions of materials or professional services?
Absolutely. As already noted, all the estimates are based on CAMA paying market value for all materials and services. Pro Bono services have already been a big factor in getting this project going. If you are in a position to provide any needed materials or services, please contact your CAMA Rep to see if something can be worked out.
Why are my funds being mailed to Phoenix?
CAMA uses Chase Bank. For efficiency and more secure receipt of contributions, their lockbox services are being used.
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It is hoped that this extensive FAQ answers all your questions. However, should you have any other questions, please don't hesitate to contact the CAMA representative from your club. Otherwise, please get your contribution in as soon as possible. A contribution thermometer is being maintained on this website to track the progress of this very important project.
You can make a difference. And it will take all of us contributing our respective fair share to make it happen.
See you at High Plains Raceway.
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