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Tuesday December 21, 2010

By Phil Smith                                                                                             

Last Thursday, December 16 to be exact, 1080 Hartford Road LLC was back in court to answer as to why terms of Chapter 11 Bankruptcy have not been met and why the court should not mandate Chapter 7 liquidation. Mr. Terry Eames and his 1080 Hartford Road LLC have dodged the bullet again and bought some more time. The agreement that was reached between the Parker Atty. and the US Trustee contained many stipulations that 1080 Hartford Road must adhere to in order to keep the case from being converted from Chapter 11 to Chapter 7. The specifics of the agreement are scheduled to be released later this week.

Eames told the Hartford Courant nothing has changed in the continued workings of the bankruptcy case. Eames has insisted that there is no imminent dismissal of the bankruptcy case. He also told the Courant "The bankruptcy case is moving forward and we are ready for racing in 2011."

Looking Back a bit, in 2007, the Waterford Speedbowl avoided the bullet of foreclosure that was scheduled for Saturday, July 28, 2007 at noon. Property owner Terry Eames finally consummated a deal with Harvey Industries late in the week in which he sold 8 acres of the Speedbowl property for $1.6 million. Before he could take the money and run, the town of Waterford had a lien on the property that had to be satisfied. Eames was forced to pay the town $188,176 for back and current taxes, as well as $29,976 for police protection that he owed. To stop the actual foreclosure Eames secured a private loan from Rocco Arbitell of Southbury and Peter Borelli of Derby, which allowed Eames and his holding company 1080 Hartford Road to pay off its debt to Washington Mutual of Seattle. Washington Mutual, a Seattle-based bank which had originally planned to foreclose on the property because of a $1.7 million mortgage debt. The 38.75-acre property was valued at $2.2 million. Arbitell is the owner of Arbitell Convenience Stores.

Now that Eames had close to $1 million in his bank account hopefully he would continue to pay his bills and satisfy his debt to Arbetill and Borelli.
 

COURT FILING (pdf)

COURT FILING 2 (pdf)

COURT FILING 3 (pdf)

SPEEDBOWL RESPONSE

As of this Friday, Dec 24, seven weeks remain before the engines roar again in Florida for the 45th ANNUAL WORLD SERIES of ASPHALT STOCK CAR RACING at the New Smyrna Speedway which will be featuring Super Late Models, Limited Late Models, Crate Late Models, NASCAR Tour-Type Modifieds, SK Modifieds, FL/IMCA Type Modifieds, Pro-Trucks, ACT Late Models from February 11th-19th. The ACT Late Models are new to the schedule and are a welcome addition to the already popular Speedweek Series.

In TV land the viewing remains scarce. Tuesday night at 6:00pm the Versus Channel has the Lucas Oil Motorsport Hour. Wednesday at 2:00pm the Speed Channel will present highlights of the recent Specialty Equipment Manufacturers Association (SEMA) trade show that was held in Las Vegas. At 6:00pm Versus will show another segment of the Lucas Oil Motorsport Hour. On Thursday at noon the Speed Channel will replay the Oct 16 Bank of America 500 Sprint Cup event that was held at the Charlotte Motor Speedway. The Lucas Oil Motorsport Hour will again be on the Versus Network at 6:00pm.

On the Speedway Stock Market scene last week two of the three speedway stocks had a positive week. Speedway Motorsports went up 0.42 to 16.04 and Dover Motorsports went up 0.06 to 1.87. On the negative side was the International Speedway Corporation which went down 0.19 to 25.44. NASCAR Cup sponsor Sprint dropped 0.06 to 4.16 while fuel supplier Sun Oil dropped 1.45 to 38.59. Tire supplier Goodyear went up 0.29 to 11.64. The car makers were all positive for the week. Ford went up 0.07 to 16.80, General Motors went up 0.19 to 34.00 and Toyota went up 0.22 to 77.48. In the home improvement sector Home Depot went up 0.70 to 35.10 while Lowes dropped 0.05 to 25.17. With the exception of Dupont which went up 1.24 to 49.86 the major sponsors had an off week. Coca-Cola dropped 0.98 to 57.80 while Target Department Stores dropped 0.48 to 58.52, Aarons Rentals dropped 0.43 to 20.22 and Fedex dropped 0.91 to 93.07.

The Washington Post reported that Tax-cut legislation includes benefits for NASCAR Tracks: A host of industries, from Caribbean distilleries to Hollywood producers, would gain billions in tax breaks and other subsidies under compromise tax-cut legislation now moving its way through Congress. The $858 billion package approved by the Senate is focused primarily on continuing the Bush administration tax cuts for two years, extending unemployment benefits and other large-scale expenditures. But buried inside the legislation are more than $55 billion in other giveaways and tax reductions for some of Washington's most influential industry groups.

Owners of NASCAR tracks and other motor-sports facilities would benefit from two more years of a tax policy making it cheaper for them to fund capital projects. Estimated cost to taxpayers: $40 million. The motor-sports provision stems from an ongoing dispute between racetrack owners and the Internal Revenue Service, which concluded that racing facilities should be subject to longer depreciation schedules - thus decreasing tax benefits for owners. The motor-sports industry, including the popular NASCAR series, argues that a shorter, seven-year depreciation schedule used by amusement parks and similar facilities should apply instead. Congress has periodically approved the accelerated depreciation schedule since 2004; the tax-cuts bill would extend the provision again through 2011. The main beneficiaries of the provision would be large track owners such as International Speedway Corp. and Speedway Motorsports.

In other motorsports financial news, the Memphis Motorsports Park which was owned by Dover Motorsports, was sold at a live auction for slightly less than $1.9 million. Independent investor Joe Lubeck placed the highest bid for the property, $1.875 million, after the bidding opened at $3 million. Lubeck is managing partner of Jupiter, Fla based Palm Beach International Raceway, formerly known as Moroso Motorsports Park.

Thatís it for this week from 11 Gardner Drive, Westerly RI 02891. Ring my chimes at 401-596-5467. E-Mail is smithpe_97_97@yahoo.com


Phil Smith has been a columnist for Speedway Scene and other publications for over 3 decades.

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