Mystery document plagues F1 funding

AUSTIN (KXAN) - Continuing the legal saga over Formula 1, Texas Attorney General Greg Abbott released an opinion Friday leaving more questions about whether the Grand Prix event should be able to receive state funding.

Land Commissioner Jerry Patterson requested the opinion, suggesting that organizers – the Circuit Events Local Organizing Committee -- did not follow proper procedure when requesting money from the Major Events Trust Fund and that Comptroller Susan Combs allowed the alleged misstep to occur.

“Unless an application for an event as defined in the statute is submitted to a site selection organization, that is event is ineligible for METF funding,” Abbott wrote.

The race’s site selection committee is Formula One Management Limited, headed up by F1 boss Bernie Ecclestone. Included in CELOC and the city of Austin’s request for the state funding last month was a letter dated May 11, 2011, from Ecclestone.

“Formula One Management is confirming that we selected Austin, Texas as the location for the annual Formula 1 United States Grand Prix from 2012 to 2021, based on an application submitted to this office,” he wrote.

But Patterson said that application never surfaced. And Abbott’s opinion suggests, without it, solving this matter might be difficult.

“Whether such an application was actually submitted in this case is a matter of factual dispute that cannot be resolved through the opinion process,” he wrote.

“Somebody needs to produce an application, or the comptroller cannot spend any METF money,” Patterson said.

The METF request does not include such an application from the site selection committee, and City Manager Marc Ott only references Ecclestone’s letter and assumed actions by the man who initiated Austin’s F1 endeavor – Tavo Hellmund.

“It is my understanding that Tavo Hellmund pursued this application to bring this event to the Austin area,” Ott wrote in the METF request. “We believe this supports a finding that Austin was selected as the sole site for this event through a highly competitive selection process…”

The statute says such an application must come from “a local organizing committee, endorsing municipality, or endorsing county” – in this case, CELOC or the city of Austin.

“While Combs’ brief to the Attorney General tried to suggest that an application was filed before the site-selection announcement, she neglected to note that it was Tavo Hellmund who filed the application with F1, not the City Council or Commissioners Court,” said former Travis County Judge and F1 watchdog Bill Aleshire.

Hellmund is no longer in the picture, and CELOC officials have not responded to messages left by KXAN regarding this matter.

This week, Combs’ office released its analysis of the projected economic impact the event could have in Texas. Based on that report – if the race is indeed a success – F1 stands to gain around $29 million from the METF after November’s inaugural race.

Earlier this week, Combs told KXAN her estimate was “realistic.” And regarding the Attorney General’s opinion, her office was pleased with the result.

“All the rules laid out in statute are properly followed when analyzing applications made for Major Events Trust Funds – including super Bowls, All Star Games, Final Fours and Formula 1,” said R.J. DeSilva, Combs’ spokesman. “The Comptroller’s office will continue to ensure taxpayer interests are first and foremost when administering the Major Events Trust Fund.”