Fort ErieOntario Canada

These are challenging times. Our lifestyle relies on a volatile and costly energy matrix, while globalization erodes the ability to provide traditional employment. Clearly, we need to reduce our consumption while discovering sustainable economies.

The Canadian Motor Speedway project radiates benefits like the spokes of a wheel, by utilizing what we have; people, education, location, and investment… to create what we want; business, jobs, taxes, and a viable future. It represents a bold and synergistic development, responsibly conceived, that by seeking tomorrow’s answers, delivers solutions for today.

Challenge. Vision. Bold. Responsible. Solution.

The proposed $150 million racetrack development is situated on 820ac of land in Fort Erie directly adjacent to the QEW within 5 miles of the Canadian/U.S. border and 11.2 miles from Niagara Falls. It will include ancillary build-out for; infrastructure, recreational, commercial, industrial and educational uses.

The development will provide world class racing events for up to 100,000 spectators in a variety of motorsports including automobiles, motorcycles, karting and various motorized and non-motorized public events. Ultimately, the event list will include; 4 minor events (below 40% capacity), 3 intermediate events (40%-80% capacity), and 3 major events (80%+).

The racetrack consists of a stand-alone 1-mile oval connected to a 2.6 mile FIA grade road course through an innovative system of tunnels, which is unique to North American Motorsports. Every one of the 60,000 stadium seats provides expansive views of both tracks and vistas for maximum enjoyment of a comprehensive list of motorsports events. 5,000 enclosed club seats and 80 suites will favour the customer with first class catering and access. CMS is committed to improving on industry best practices by providing handicapped and limited maneuverability patrons with a best-case scenario in terms of access, support and enjoyment.

Testing of vehicles supplemental to the McMaster University Research & Development initiative will include motorized and non-motorized such as solar and electric vehicles. Research will concentrate on the study of fuels, materials and power train technology. The research park will attract national and international investment. The facility will also support commercial testing by teams as well as automotive OEMs.

Retail/Commercial development will be situated to the immediate north of the speedway encompassing the main entry to the facility. South of the speedway and road course will be the institutional research and development facility.

A draft site plan has been prepared in collaboration with Paxton Waters Architecture, American Structurepoint, maseRace, Emirates Consulting, Jeff Gordon Inc., UEM Inc., and AMEC/Philips Engineering Ltd. Currently the development team has submitted the required zoning applications to all affected agencies, looking to commence construction in 2009/10. Total build-out throughout all components of the facility is planned to reach $400M.

Development

Starting from business model development, to track design to final operations, CMS has formed a top tier development consortium by engaging the industries leaders to build the most unique, business smart, and socially responsible motor sports venue in the country. Securing strategic partners such as NASCAR champion Jeff Gordon, world-renowned engineering university McMaster, and a host of motor sport technology providers yields significant advantages for our track extending beyond its core racing activities. The consortium’s collective experience from over 50 years of North American motorsports provides CMS with optimal insight into best practices for this unique initiative.

In short, CMS and all of our future global developments will act as a continuous resource for research, transfer of technology, high-level job creation, tourism dollar generation and significant economic growth in each of the markets the CMS template will have a presence in.

The Team

Economic growth takes place when a community’s resources, i.e., people, capital, and natural resources like land, become more productive. The combined benefits of ; land availability, a market area population of 140 million, dual exit access to the highway, 16,000 hotel rooms, 12 million annual visitors to Niagara Falls and a range of world class attractions gives CMS the best location for a racing facility in Canada.

Most of the speedway’s customers will come from outside the town and region and even from outside the Province and Country and will stay in the hotels and at the track in their self-contained RVs. The ancillary R&D and commercial development will further enhance job and tax creation, while providing a significant catalyst for future growth.

From the taxpayers’ perspective, a professional sports complex is successful when it attracts ‘new’ dollars into its region. New dollars are primarily responsible for the ‘net economic effect’. Localized pro sports teams tend to ‘churn’ local entertainment dollars and have less economic impact, while speedways draw from a much wider ‘non-local’ area and the fan stays in-market spending, for several days.

How and Why it Works

Improvements to the speedway site’s environment will be a combined effort of vested interest groups, government agencies, and environmental professionals working from a comprehensive biodiversity plan.

1) Carbon neutral development2) Remediation of Frenchmen’s Creek corridor 3) Proper filtration plantings around all watercourses4) Expansion of wetland/woodlands coverage from 170 acres to 250

acres 5) Utilization of Proper Forest Management Practices to improve

woodlot health 6) Removal of a significant number of pre-Code septic systems

throughout the plan area

Environmental Enhancements

As global demand for energy increases relative to supply, two areas of research have become the focal point in our quest to reduce man’s carbon footprint while maintaining quality of life:

1) Alternative and renewable - technologies and sources 2) Increasing the efficiency of current technologies

The McMaster University R&D facility will focus on efficiencies and alternatives through motorsport within the areas of fuels, materials and power trains in a quest to develop more sustainable products.

Research & Development

Top-level universities throughout the World are implementing a dual strategy in their efforts to add value to their regions economically:

1) Building business incubation programs and 2) Transferring technology from university research to the private sector

At the McMaster University R&D facility; research entrepreneurs will be provided with the instruments to navigate within the knowledge economy. These market-driven initiatives will be combined in a single point effort to match licensed technologies with investment partners for business creation.

Business Development

The “interceptor” location of the property directly on the QEW (Queen Elizabeth Way) provides CMS with the ability to build a ‘best of breed’ recreational entertainment and retail area within the Fort Erie and Niagara Regional tax assessment district. Purchase demographics include:

1) Event and non-event traffic to the Speedway2) 22,000+ daily traffic flow on the QEW3) Research and development park

Commercial

Close to one thousand construction jobs will be created for the Speedway build-out alone, and this will be complemented by an increase in jobs for; infrastructure, the R&D Park and commercial area. Permanent jobs within the total development will number around one thousand, as well as, 2500 part time jobs around the Speedway. Existing local service businesses will have increased staffing requirements.

1) 830 to 1330 net new jobs (Ernst & Young study)2) 950 direct construction jobs3) 1400 indirect construction jobs4) Construction spend of $200M+

CMS will leverage the area’s legacy advantages in education to provide jobs now and in the future for residents.

Jobs

The Ernst & Young report calculates over $30Million in annual return for the Provincial and Federal governments through income and sales taxations. This will lead to robust and rapid incomes for government stakeholders.

Municipal and regional benefits, in the form of tax receipts from the project’s annualized taxes, employee residential taxes and increased receipts from property value increases, as well as, the addition of businesses, infrastructures, social services and their employees ancillary to the Project will occur locally.

Taxes

1) $200M annual economic impact a. 3/4 OF SPENDING is OFF-SITE

2) 200% to 360% increase in local gaming revenues

3) Repatriation of US tourism traffic to Niagara Region

4) Showcasing area through international media

5) Differentiation of Town from other competitors a. To attract new businesses b. To hold on to existing businesses c. Development catalyst - creation of business incubator

6) Intensification of development around existing infrastructure assets

7) Immediate utilization and billing revenues for Town from infrastructure assets

8) Potential for improvement of infrastructure, recreational and social services for residents

Other Benefits

Mr. Azhar Mohammad Partner +1-416-845-4909 (Toronto) Email: azhar@cdnmotorspeedway.com

Mr. James Mason Partner +1-905-228-0303 (Niagara Falls) Email: jay@cdnmotorspeedway.com

Website: www.cdnmotorspeedway.com

Contacts