Getting Markham's streets ready for this summer's Ontario Honda Dealers Indy has already cost more than $12 million, Mayor Frank Scarpitti says, and the city is counting on hotel guests rather than property taxpayers to cover the bill.
Scarpitti gave the figure in an interview published Friday, a month after council formalized how the race will be paid for. On Jan. 27, council endorsed a funding partnership approved by the board of Destination Markham Corporation, the city's tourism and economic development agency.
How it is being paid for
Under the plan, Destination Markham will put $3.4 million from its accumulated surplus toward the project, along with the extra revenue from raising Markham's municipal accommodation tax, a levy on hotel stays, from four to six per cent as of April 1.
We kept dollars in reserve, knowing that we would probably have to reinvest in infrastructure or invest in new infrastructure to attract tourism.
— Frank Scarpitti, mayor of Markham, to yorkregion.com
Scarpitti said no property tax money is going into capital construction for the temporary street circuit. Asked what happens if crowds fall short, he said the hotel-tax model lets the city recover its costs over time, and a smaller turnout would simply mean a longer payback.
Repaving, pit lane and a later date
Much of the capital money has been spent, the mayor said, and more resurfacing is still underway. Because IndyCars need smoother pavement than ordinary city roads, stretches of the course are being milled and repaved. Other work includes widening a road behind the YMCA, moving light standards, changing curbs and medians, and building a double pit lane that puts pit stops directly in front of the main grandstand.
The three-day race runs Aug. 14 to 16, moving from the event's traditional July date in Toronto to later in the IndyCar season. The city projects 140,000 to 150,000 attendees, about $50 million in regional economic activity and roughly 19,000 hotel room nights.
Scarpitti argued the new location will be easier to reach for most fans, saying 71 per cent of Indy attendees would have a shorter commute to Markham. The race is part of a five-year agreement among the city, Green Savoree Toronto ULC and IndyCar, with options to renew.
For local businesses, the bet is that a marquee event brings more visitors and more big events behind it. The mayor said he expects one major sporting event to help attract others.
