NASCAR in TorC?

ALBUQUERQUE -- The proposed Hot Springs Motorplex development in Truth or Consequences has been widely touted as a potential home away from home for both NASCAR and Roush Racing, but according to an investigation by The St. Petersburg Times, that’s all been a bunch of hot air.

The Times report, which ran on Sunday, claims to debunk almost 20 statements made by the developer of the motorplex, Greg Neal, to the Hillsboro Community College in Tampa, Florida as ”...exaggerated, misleading, disputed, or downright false.”

Apparently, Neal included his work on the motorplex project in Truth or Consequences as evidence of his credentials, in a bid to become the developer of an expansion of the college, so the reporter looked into his claims about NASCAR and Roush Racing:

 

Two and a half years after Neal used the motorplex as an example of his ability to deliver, nothing has been built. A public hearing on his master plan is scheduled for Monday.

Neal got the land for the motorplex in a complicated trade involving the New Mexico State Land Office. Part of what helped him close the deal was a project overview that contained these impressive claims:

1. “HSMD (Hot Springs Motorplex Development) has proposed to NASCAR that it would be well-served to have a logistics and distribution center in the West, to support the existing races and planned expansion of the sport beyond its historic boundaries of the Southeast and Mid-Atlantic. They are interested …”

They are not, said Ramsey Poston, a NASCAR spokesman. He said there was a meeting, but NASCAR gave no indication of interest.

2. “Roush Racing and industries has been recruited intentionally to be an anchor for this development after an expression of interest in operating a Signature Racing School and the opportunity to design and architect the track facilities, garages, shops, and other supporting infrastructure.”

But Maureen C. Crowley, a spokeswoman for Roush, said, “While we did speak with the developer for this project approximately a year ago, we do not currently have any plans to expand our activities to New Mexico.”

 

The State Land Office’s press releases announcing the land exchange/sale that transferred 7,388 acres for the project feature the claims about NASCAR and Roush Racing front and center. In a February press release announcing that the land deal was almost final, the land office said this about the project:

 

The developer has also proposed to NASCAR that it would be well-served to have a logistics and distribution center in the West, to support existing races and planned expansion of the sport beyond its historical boundaries of the Southeast and Mid-Atlantic.

Further, Roush Racing and Industries has been recruited as an anchor for this development after it expressed interest in operating a signature racing school and the opportunity to design and architect the track facilities, garages, shops and supporting infrastructure.

In a follow-up press release in April announcing the land exchange, the land office repeated the paragraph about NASCAR but downgraded the Roush Racing information, from the company having been recruited to simply saying the company had “expressed interest.”

Jim Jackson, Director of Surface for the State Land Office, verified the claims were made by Neal. “He told me both entities were interested and he had hopes that they would go forward,” Jackson told the Independent. “He never committed that they would, though.”

As to the land exchange, Jackson said what was important to the State Land Office was that Neal demonstrate the financial backing to see the land exchange itself through.

“In this case, they came up with the land and the cash for the deal. That’s where the rubber hits the road,” Jackson said. “Our hope is that the project will be successful, but we have a fiduciary trust obligation to the state and that’s our paramount concern. A subsidiary aspect is that the economy of that area is benefited. But if it doesn’t succeed, we’ve covered our fiduciary responsibility.”

TorC City Manager Jaime Aguilerar told the Independent that the town had very little contact with the land office, even though the project would eventually more than double the size of the town.

“They do their land deals on their own whether the city is in favor or not,” he said. “We happened to be in favor of this trade though. It set the process in motion to have the land annexed, which wasn’t possible as long as it belonged to the BLM.” The Bureau of Land Management originally owned the land, and participated in a three-way land swap with the SLO and Neal to facilitate the project.

Motorcross as economic development

 

 

Motorcross in Truth or Consequences was conceived as a way to complement Elephant Butte Lake as a tourist draw to the area. Steve Rouke, the originator of the idea, is quoted in 2005 describing as “gear heads” many of those who come to the lake. “They own jet skis and drag boats…they are performance people, they put gasoline in everything and run the daylights out of it,” he said.

 

The project, now under the aegis of Neal, has turned into an ambitious mixed use master plan spread out over 12 square miles. It would include the motorplex, with both recreational and competitive road courses, an off-road complex, and a drag strip; over 4,000 new residential units; a resort hotel and conference center; a light-manufacturing industrial park; a research and development facility; and development of 900 acres around the airport “for commerce and industry.”

TorC City Commissioner Steve Green says it’s "the biggest thing to ever hit this community.” For this reason, he was the lone dissenter when the city commission approved the master plan on Monday night.

Green says the development will more than double the current size of the city, plus there are significant issues concerning water. He said that while he voted for both the annexation and zoning measures on Monday, as did the other Commissioners, the master plan needs further scrutiny. A fiscal impact study should be done, plus, he thinks the town should hire a hydrologist who specializes in geothermal water to study the impacts on the town's hot springs.

“Our recharge area is underneath their development, and since the town’s identity is closely tied to the hot springs here, it would be a good idea to look at how it would affect our mineral water,” Green told the Independent.

In addition to concerns about impacts on the economy and the hot springs, Green said water in general is an issue. It’s the primary concern for the community, he said.

“What if the company drills wells to 800 feet compared to the small well users at 200 feet? It could draw down the water table and impact the pre-existing rights of water users quite detrimentally. I think this is a righteous concern,” he told the Independent.

Despite these concerns, Green said he remains supportive as do most other community members, especially in light of the jobs it will bring.

Reserving Judgment on Neal

Greg Neal didn’t return calls made by the Independent seeking a rebuttal to the St. Petersburg Times investigation. But officials in New Mexico are reserving judgment, if not outright dashing to his defense.

When asked if Greg Neal and company had claimed that NASCAR and Roush Racing had expressed interest in the project, Green declined to comment, saying he would reserve judgment until after Neal responds.

TorC Mayor Lori Montgomery agreed, saying it wasn’t fair to comment without first hearing what Neal has to say. She added though that the reporter’s investigation should be taken with a healthy dose of skepticism.

“When a newspaper calls an agency to inquire about something, they may speak to one person who may answer but not really know,” she said. “But there may be people in higher positions who know differently.”

 

Earl Greer, a real estate company owner in TorC and the former president of the Sierra County Economic Development Organization, said Neal told him that Roush “had expressed interest -- that they’d take a look at it.” But regardless, he said, Neal’s ability to pull off the land acquisition suggests that he can pull the project itself off, even if NASCAR or Roush don’t utilize the site.

State Land Commissioner Patrick Lyons also stands by the developer, telling the Independent through spokesperson Kristin Haase that:

 

This project will provide significant economic growth opportunities and jobs to Sierra County and the surrounding communities, as well as further the Land Office’s efforts to generate revenue for public education. The Hot Springs Motorplex team is a valued business partner and we appreciate their investment in New Mexico.

 

Haase went a step further, telling this reporter that the St. Petersburg Times reporter as much as told her he was planning to do a “hatchet job” on Neal, and for this reason she had refused to comment for his story.

“The reporter lives in Florida and has never been to New Mexico,” she told the Independent, “nor does he understand or appreciate the elements of the agreement and what it means to the southern region of our state.”

 

Nontheless, the claims that both NASCAR and Roush Racing have expressed interest in setting up shop at the Hot Springs Motorplex seem to have taken on a life of their own in New Mexico.

 

A general search of the internet finds similar claims littered in newspaper articles about the project, including a New York Times article which calls it a "huge Nascar racetrack" and links directly to its own Nascar company page.

 

References to NASCAR in Truth or Consequences, not just a "NASCAR-style" track, pop up on enthusiast’s internet forums, on real estate or RV websites promoting the area to potential investors, to even surfacing in a recent Las Cruces Sun-News article that suggests Congressman Steve Pearce has touted NASCAR for TorC:

 

Pearce notes job growth in the Second District — particularly in Eunice with a nuclear enrichment facility and in T or C with the Spaceport and NASCAR. “A big thing we’ve done down here,” Peace says, “is create jobs.”

The St.Petersburg Times investigation provides evidence refuting almost 20 claims made by Neal about his background and accomplishments, some of which have clearly been used to sell the Hot Springs Motorplex project, not just to the town of TorC but to investors as well.

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