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BUSHY PARK– SECURING THE NEXT 40 YEARS HOW THE BMF UTILISED FIAI GRANT FUNDING Andrew Mallalieu, President BMF 28 th July 2011.

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Presentation on theme: "BUSHY PARK– SECURING THE NEXT 40 YEARS HOW THE BMF UTILISED FIAI GRANT FUNDING Andrew Mallalieu, President BMF 28 th July 2011."— Presentation transcript:

1 BUSHY PARK– SECURING THE NEXT 40 YEARS HOW THE BMF UTILISED FIAI GRANT FUNDING Andrew Mallalieu, President BMF 28 th July 2011

2 Introduction Objectives of this presentation The Barbados Motorsport Federation were beneficiaries of a grant supported business feasibility evaluation and commercially sustainable Master Plan in 2010 How did the FIA Institute Facilities Improvement Programme assist a small regional race destination? What did the BMF hope to achieve as a result of this grant funded support? How the BMF raised the contribution of 73,726 from patrons of the Barbadian motorsport community What the BMF actually received and how they have used the Master Plan to secure political support

3 Bushy Park A Brief History Bushy Park was built in 1971 by the Barbados Rally Club, initially as a loose surface track. In 1973 it was paved and has been largely untouched since. The facility has had limited essential repaving in some areas recently and is maintained by volunteers and operated on an infrequent, but very popular basis. The annual Big Meet is a legendary international event.

4 Bushy Park A Brief History The grid for the F2 race in 1975

5 Bushy Park A Brief History

6 The Facility Improvement Programme Reasons and Motivations for the BMF Motorsport is the largest spectator sporting activity in Barbados. Up to 10% of the population attend race meetings - a record that arguably no other circuit in the world can claim. Since its construction in 1971, Bushy Park has been host to some of the biggest motorsport events on the island of Barbados and in the region. In the late 1970s activities at the track ended as motor sport was viewed as a waste of scarce resources – especially fuel. In 1990 the land upon which the track was built was sold to a UK based developer for the construction of a golf course. Thankfully it never happened. The local clubs have leased the facility back from the UK developer and throughout the 1990s till today it has been maintained in a limited fashion and used for saloon car racing and karting. The facility has always been seen as the home of motor sport on the island. In 2005 the Government asked the BMF to develop a plan for the sustainable development of motor sport and we suggested that Bushy Park be acquired by Government and designated as such. In 2010 the Government acquired the land and agreed to lease it to the BMF (99 years) for the development of a facility. The Motor Sport Safety Development Funds Facility Improvement Programme provided a unique opportunity to develop a professional and sustainable case for the future of Bushy Park race circuit

7 The Bushy Park Development Plan FIA Institute Facility Improvement Programme Vision Plan Today Commercial Module Master Plan FIA Institute Facility Improvement Programme Yesterday

8 The Bushy Park Development Plan 1. Vision Plan Module, May 2010 Inputs Each member Club of the BMF was asked to meet with their membership and brainstorm the future of motor sports within their club. No limit was placed on their asperations. The Clubs met with the FiA team and a shared vision was developed. Outputs: Development of a design brief in conjunction with the BMF and the Apex Circuit Design led Facilities Advisory Team: To provide a permanent home for motor sport in Barbados; To upgrade the existing circuit to 2km and to FIA Grade 3 standard; To create a CIK FiA approved kart circuit To create a commercially sustainable motorsport development. To provide an administration hub for the motor sports club on the island To identify the engineering requirements for upgrade and renovation To establish strategies to develop the site in a commercially sustainable way To develop a quantities analysis which will allow for a professional cost report Creation of a Vision for the facility in line with this brief:

9 The Bushy Park Development Plan 1. Vision Plan Module, May 2010 New Pits and Paddock Drag strip extension 2km FIA Grade 3 Circuit Motorsports Club Building Upgrade spectator clubhouse Optional rallycross extension

10 The Bushy Park Development Plan 2. Commercial Module, August 2010 Vision Plan Today Commercial Module Master Plan FIA Institute Facility Improvement Programme Project start

11 The Bushy Park Development Plan 2. Commercial Module Achievements: A preliminary commercial assessment of the Vision Plan through: Development of a project estimate: an initial estimate of ca. BD$18 million for the motorsport facilities Identification of alternative cost options for upgrade and renovation Preparation of a project operational cash flows estimate; events calendar; track rental and ticket revenues; operational costs estimates; An assessment of multiple scenarios to ascertain optimum return: Variations in track construction spec; Adjustments to luxury track-side apartments plot sizes; Reduction of drag racing facilities; RESULT: A VIABLE PROJECT CONCEPT WITH A PREDICTED IRR OF 17%

12 The Bushy Park Development Plan 3. Environmental Module Vision Plan Today Commercial Module Master Plan FIA Institute Facility Improvement Programme Project start

13 The Bushy Park Development Plan 3. Environmental Module Achievements: Environmental sound proposals for the motor sport development: Ensuring the health and wellbeing of users; Retaining the natural ecology of the site; Minimising the risk of pollution from the development; Assessing traffic and the impact of major event days; Proposals for low energy materials and energy efficient buildings; Environmental management systems; Sustainable water, rainfall and drainage systems Noise attenuation

14 The Bushy Park Development Plan 4. Operational Module Vision Plan Today Commercial Module Master Plan FIA Institute Facility Improvement Programme Project start

15 The Bushy Park Development Plan 4. Operational Module Achievements: An operational appraisal of the new Master Plan to facilitate smooth and cost effective operation; A definition of the developments operational objectives: Development of a more detailed facilities calendar; Advice on and preparation of key operational tools and documents; Operating manuals; Staffing and recruitment tools; Sample contracts; Equipment lists;

16 The Bushy Park Development Plan 5. Master Plan Module Vision Plan Today Commercial Module Master Plan FIA Institute Facility Improvement Programme Project start

17 The Bushy Park Development Plan 5. Master Plan Module Achievements: The development of a new Master Plan A final Master Plan that learned from the assessments in previous modules; An updated cost estimate a reduction of BD$3 million to the track construction budget: BD$15 million An updated commercial assessment; an increase in the IRR return from 17% to 18% IRR RESULT:A commercially tested and sustainable Master Plan for Bushy Park

18 The Bushy Park Development Plan 5. Master Plan Module

19 The Facility Improvement Programme Funding the programme The initial funding (33% matching) required by the FIA Institute to trigger grant support was raised by sharing the vision for the facility with a group of wealthy motor sport enthusiasts and entrepeneurs. An agreement was struck given them the right to develop the facility in line with the Master Plan and a lease on the facility to operate it for a period of years. The Commercial Feasibility evaluation report has been presented in a manner which allows the BMF to make a credible commercial case and: Approach government to present a commercially sustainable case for public sector funding for a permanent home for motorsport on the island Demonstrate to the initial sponsors the viability of the project Approach the commercial investment community with a justifiable case for equity investment, showcasing a credible opportunity for a commercial return on investment Approach commercial lenders with a prudent case for debt funding, showcasing a credible case for servicing any debt funding from track operations and site development

20 The Facility Improvement Programme Conclusions The Master Plan we have would not have been possible without the FiA Institute programme. The resources deployed for this engagement would have been out of our reach and we would have limited our vision. Raising the matching funds upfront by partnering with a developer was key to getting the programme off the ground. While we may not in Phase 1 be able to complete the entire master plan we have a clear road as to where we are going. We can invest for the future in a sustainable fashion. Apex and Ridge were particularly helpful. Apex really embraced what is Barbados motor sport and managed to capture in the final output what was appropriate for Barbados. In the final analysis what will come of this programme will be a lasting legacy for the development of motor sport in Barbados and indeed the region. Essential elements to have in place first: A need and passion for a facility A separation of responsibilities between governance of the sport, commercial aspects of a facility, and Government regulatory environment The role of the ASN must be to create an environment where Clubs can thrive and the business community has a desire to invest in the sport through sponsorship and facility operation The ASN should facilitate the plan to allow the business community to embrace the development of the facility

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