How did East Wenatchee council members plunge into a self-created swamp miles east of the city and lose $112,000 in two years? Easily. A majority was driven by an enthusiastic Mayor Lacy, its economic development policy and urged on by its event director Dawn Collings and her advisory board, United States Sprint Boat Association officials and fans.

            How did the council climb out? Immediately. At the Council’s September 27 meeting Mayor Lacy brought up Thunder Swamp for discussion even though it wasn’t on the agenda. Despite race fans’ supportive emails and testimony at a hearing on September 20, the council voted 5-2 to immediately cancel the land lease and contract with the USSBA. My blog on the 27th recommended it exit immediately and commission an agent to sell its rights, but council members left that opportunity open to investors. It’s time for supporters to invest.

The economic development task of the event department is, “To promote and attract awareness, interest and tourism to East Wenatchee through special events which portray the spirit of the community and quality of life East Wenatchee has to offer.”  The most visible events are The Les Schwab Classy Chassis Parade and Car Show and the Wings and Wheels Festival.  

They’re virtually no risk with free admission on public property in downtown. Most revenues come from registrants and vendors. When I asked Nick Gerde, East Wenatchee treasurer, whether Classy Chassis and Wings and Wheels were profitable, he said, “Government can’t measure and recognize profit like businesses because it’s income is tax revenue. Historically the hotel/motel tax covers the bulk of [excess] costs for those events.” 

Thunder Swamp was a profit/loss business. Eighty percent of the revenue came from gate receipts on a private 40-acre lot out-of-sight north of the airport. There was no major sponsor.  The city bore all costs such as the $40,000 track construction, $16,000 USSBA license, $7,500 per race lease and $11,322 in advertising. Attendance dwindled every race until only 733 ticket buyers paid on August 14.

Thunder Swamp’s event needs investments to reverse the trend.

The track has a reputation for accidents and disqualifications that slow down the fan racing experience and limit super boat speeds. Dan Morrison, USSBA Vice President who built St. Johns and his own Port Angeles track, created and built East Wenatchee’s track to challenge racers like one in New Zealand. “Bring your ‘A’ game,” he told Collings, “or don’t come.“

East Wenatchee’s track needs improvements. Collings said, “After the first race this year we smoothed out the turns and racers were very complementary.”

But only two super boats registered in August and neither finished. The USSBA reported, “It is still very tight and has more turns than any other track in the USSBA Racing Series.” 

Finally, supporters recommend more advertising to promote races throughout the Northwest and Canada to get 8,000 people like Port Angeles did in September. Thunder Swamp needs wider promotion, but the comparison’s unfair. Port Angeles hosted the National USSBA Finals where Morrison became Super Boats National Champion on his own track.

            The council was under pressure. It needed to decide by October whether to improve the track, budget expenses and schedule dates with USSBA. Lacy and several council members said at the hearing they didn’t want people to feel they’re walking away from it. Mayoral candidate Dave Bremmer had consistently opposed it. Gerde said, “At the budget committee meeting ideas were batted around to budget money in 2012 to facilitate the transfer to private parties, but assume no risk.” 

            In my blog on September 27, I recommended commissioning an agent to sell Thunder Swamp rights for 2012. Otherwise budgeting money would assume risk without guaranteed revenues. Hotel/motel tax revenues probably won’t fully cover the other 2012 events.

            Consequently my blog urged the city to regrettably announce a moratorium on Thunder Swamp for 2012.   It was time to cut taxpayer losses. 

            The city’s decision should not be seen as walking away. It partnered with the USSBA, built a racetrack on private property and paid the owner $22,500 to hold three races on it. Investors now have three more months to get organized for 2012 than the city had.

            It’s time the private sector shows commitment. The property owner, USSBA and supporters have vested interests to acquire ownership, assume risk, earn profits and thank the city for its investment.

 The council wisely understood it already paid too much for a reminder it has no business risking taxpayer funds in risky profit-and-loss businesses.