Economy does not deter Hall of Fame officials

CHARLOTTE, N.C. -- With its opening a year away, NASCAR Hall of Fame officials remain confident in their business plan despite economic forces that could affect sponsorship sales and visitors.

The Hall of Fame plans an annual revenue budget of $10 million to $12 million or more against expenses in the high seven figures after it opens in May 2010. It also forecasts that more than 800,000 visitors will walk through its doors in the first year to sample its interactive displays and view its impressive collection of artifacts, shop at its store and eat at its restaurant.

Kelley

The nearly $200 million Hall of Fame seemingly spared no expense. The architect, Pei, Cobb, Freed & Partners, worked on the expansion and renovation of the Louvre, as well as the Rock and Roll Hall of Fame in Cleveland. The NASCAR Hall of Fame will include a 270-seat theater, a speedway replica called Glory Road, cars, haulers and other equipment.

But as the Hall of Fame enters the home stretch before its opening, NASCAR's grandiose new epicenter comes with a shrinking reality, one of a sobering business environment, sagging attendance at the track and TV ratings that are down double-digit percentage points this year.

It all has executives in the industry wondering how the Hall of Fame will generate the sponsorship revenue it expects and questioning whether the attraction will draw the 831,000 annual visitors the city of Charlotte projects.

"We've got a very solid model," said Winston Kelley, the Hall of Fame's executive director and one of the most familiar voices on NASCAR radio broadcasts during the past 20 years. "Am I aware that the economic circumstances have changed since we started this in 2006? Absolutely. We know that we've got to fight for that entertainment dollar. But being new and exciting, we've got the opportunity that, if we do a good job, it'll take care of itself."

Seeking tenants

In the sport's early days, Charlotte gradually became the home to NASCAR teams and the rest of the sport's support industry has followed over the years. The city won a battle with the other finalists, Daytona Beach and Atlanta, to build the Hall of Fame.

While it maintains its headquarters in Daytona Beach, Fla., NASCAR has a research and development office north of Charlotte, its licensing office downtown and its media group just south of downtown.

When the Hall of Fame opens, much of NASCAR's presence in Charlotte will come together at the development, with the Hall of Fame serving as the anchor, although the sanctioning body remains adamant that Daytona is its official home. NASCAR will move 260 of its current employees into the 19-story NASCAR Plaza office tower, representing its media group and licensing division. The R&D center will stay put.

NASCAR has agreed to a long-term lease that occupies 120,000 of the tower's 390,000 square feet of office space. The majority of NASCAR's real estate will be devoted to studio and production facilities for the media group that could one day form the home of a NASCAR television network.

CB Richard Ellis, the leasing agent for the office tower, said one other tenant has been locked in, the Charlotte Regional Partnership, which helps the area recruit business. About 265,000 square feet remain available.

NASCAR is not on the hook financially for any of the unleased property, but the slow-moving process to attract tenants and sponsors to a building that will be among the crown jewels of Charlotte's downtown reflects the challenging business climate.

"We're starting to see more movement, but everyone is still very cautious," said Cristy Nine, part of the CB Richard Ellis team leasing the office space. "You see people kicking the tires a lot more and just an overall hesitancy to make a decision. But we've got several people we're talking to, and we're optimistic about the future." (Continued)