Badlands Motor Speedway Update!
September 17, 2018
Well people, you can't begin to make this stuff up. Here is an update of what happened at our Auction on Saturday, September 15th at Badlands Motor Speedway.
Game Of Chicken:
We had bidders both on site and on-line for our auction process last Saturday. These folks all took the time to do the due diligence on the facility. They filled out the proper paperwork with our world renown auction house, Williams and Williams out of Tulsa, Oklahoma. They deposited the necessary $500,000 cash deposit to be make them eligible to bid or provided detailed financial information to prove they could execute the deal and actually close on the property within the 30 day period.
Every bidder knew every detail of the transaction including the starting minimum nominal bid of $3,150,000 to get things going.
The auction started promptly and none of the bidders would "Go First". That's right, a good ol' fashion round of "South Dakota Chicken" got underway and everyone was standing their ground. Folks were bound and determined not to be the first one to bid. After several minutes of this, the auction team stopped the auction and closed out the process.
Of course after this happened several of the bidders approached and called the auction folks, the realtors, me personally, our track staff and other folks they thought were "in the know". We had one gentleman show up at the gate 10 min before the auction with a letter of credit from his bank to bid but he had not gone through the process and filled out the paperwork so he was unable to bid. There are several unique stories that happened in the hours after the auction process along with people wanting to make offers.
So, let's make this simple:
In the spirit of compromise and fairness to everyone we will not be holding another auction for Badlands Motor Speedway.
Right now we have the entire turnkey operation priced at $9,450,000. This price is approximately half of what we have invested and spent to get the facility to where it is today. For those of you who went through the sales process, you are keenly aware of the extreme level of coolness that was created with the Track. There was over $10,000,000 spent just on infrastructure and new buildings and the place is simply too amazing to even start to explain to people unless they actually see it in person.
We are going to extend a deeply discounted, temporary purchase price of $6,299,999 which is a reduction of 1/3rd of the current pricing. This is going to be a first to the deal price and will be extended only until the end of 2018. This deal would need to close by Friday, December 28th at 3pm. This amount would be NET to us and this is on a for sale by owner basis. If there is a realtor involved or broker or 3rd party, those fees would be incurred by the buyers. If 2 offers come in at the same time, we will simply take the highest price offer. This offer is truly for the first person or group to come up with the money. At this price we are not in a position to hold it for someone only to have them not be able to fund the deal.
If one of the several interested parties does not wish to take advantage of this price reduction, the price will go back to the original $9,450,000 on the first of the year and the entire facility will be completely maintained and race ready until someone comes forward to purchase it for that amount or they don't. We have kept the entire operation in pristine shape and have been ready to fire up racing and events at any time. We have had and will continue to have our crews keep the place in tip top shape until it finds a new owner.
County, County, what happened with the County:
We had a major curve ball thrown at us from Minnehaha County in June of this year, just prior to when the auction was scheduled the first time. We were at the peak of interest from potential new owners and were still early enough in the season for the Speedway to operate for the remainder of the 2018 race season.
The county recklessly issued press releases and a letter to us to cease operation because they claimed that we had fallen out of our compliance under some sort of grandfathering ordinance. This was just days before a practice race was scheduled to work in the track and to test out the various facility infrastructures. It was also just days before a posted auction was scheduled at the Speedway. Well, this blew up into a media frenzy and with the help of our legal team, the county finally retracted the letter and everything was back to normal.
But obviously it wasn't, as buyer after buyer and so many of the interested parties were now nervous that the county may come in and "shut them down" after they buy the track. We know this is not the fact, but with all of the news from literally every media outlet in the area reporting heavily on this "Bombshell News", it cast a deep shadow of suspicion on the sale.
We invite any potential buyers to contact our legal team of Chris Healy or Mark Meierhenry at Meierhenry Sargent LLP in Sioux Falls, SD, 605-336-3075. You can also contact Scott Anderson or his office at the Minnehaha County department of Zoning and Planning as he was the person who both wrote the letter and then retracted the letter. Although their actions have caused great damage to selling the property when we could have, we are confident from all sides that this was a mistake and will not be a problem for us or any future property owner.
We all truly hope we can pass the torch on to a new ownership group as soon as possible. We know there is a substantial amount of interest from several groups out there. We have put forth an incredible price and value for this historic piece of property and legendary race track and concert venue. We know time is of the essence as the off-season is the best time for the business to generate income by selling advertising, sponsorships, VIP Luxury Suites, Reserved Seating and much more to get ready for the gates to open to the thousands of race fans who have entered our gates over the past 60 years.
First come first Serve.... Good luck!