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Bruton Smith sues Concord, Cabarrus
File Photo
Speedway Motorsports owner Bruton Smith at a press conference last year.
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Published: September 18, 2009
Updated: 09/18/2009 01:48 pm
CONCORD - Bruton Smith and Speedway Motorsports have filed a law suit against Concord and Cabarrus County, saying the two governments have breached an agreement over $80 million in incentives.
In the lawsuit filed Thursday afternoon with the Cabarrus County Clerk's Office, SMI accuses the city and county of breach of contract and negligent misrepresentation and claims the company has suffered financial damages. SMI is asking the court to enforce a Nov. 21, 2007 agreement where the city and county offered SMI $80 million in reimbursements in exchange for public transportation infrastructure improvements around the Lowe's Motor Speedway complex.
No specific amount is given, but the lawsuit said that SMI has already spent $4 million building zMax Dragway in Concord.
Concord city spokeswoman Deborah Clark said the city would not comment on the lawsuit until it "has received the complaint in the manner required by statute."
The lawsuit stems from a fiasco two years ago, when Smith, who is CEO of Speedway Motorsports, threatened to move the speedway out of Concord because the city said he couldn't building the drag strip.
For three months, Smith threatened to move the speedway, while other local governments in North and South Carolina made real offers to Smith to move the speedway.
Local officials negotiated with Smith, while the Cabarrus Convention and Visitors Bureau launched a "Save Our Speedway" campaign, complete with a letter-writing campaign by schoolchildren and a plane that flew around the speedway with a banner that said "We heart you Bruton."
Concord Mayor Scott Padgett and County Commission chariman Bob Carruth presented with a signed proposal on Nov. 21, 2007. All the commissioners, except for Coy Privette, approved the agreement. The Concord City Council approved it unanimously.
Smith called Padgett and said "We have an agreement."
All parties thought there would be a more formal agreement drawn up, according to the lawsuit, and by Aug. 21, 2008, nine months after the parties agreement in principle, a draft agreement was delivered to SMI.
The draft agreement had conditions listed that SMI objected to, namely, that SMI would "spend tens of millions of dollars within three years to construct extensive public transportation infrastructure improvements, but would allow the Local Governments up to forty years to reimburse SMI."
The draft agreement also said that "SMI would receive and keep the reimbursements only if SMI operate that Speedway and Dragway in Concord/Cabarrus for at least 40 years."
In the lawsuit, SMI contends these "terms were never agreed upon or discussed and are wholly unreasonable" and says the agreement from Nov. 21, 2007 is a valid contract.
SMI has spent $4 million toward public infrastructure improvements and the local government have refused payment, thus forcing SMI to file suit, according the lawsuit.
Charlotte attorney Bill Diehl filed the lawsuit on behalf of SMI.
Read more about this story in Sunday's Independent Tribune.
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