Developers hope deal is near on private racing complex in NW Indiana

Jul 24, 2010 — The Indianapolis Star

Bruce C. Smith

Jul. 24, 2010 (McClatchy-Tribune Regional News delivered by Newstex) -- Developers hope to close in the next week on partial financing for a $170 million country club and private racetrack in Northwest Indiana that's also intended to be the set for a new movie about the Indy 500.

Four years in the making, Prairie Hills Motorsports Club would be built on nearly 970 acres in Newton County. It would have at least four interconnected tracks that total nearly 10 miles and could form the longest road course among private car clubs in the country.

If a rapid-fire series of financing and real estate deals gets done in the next couple of weeks, filming of the movie "500" could begin in October.

Justin Escue, president of Indianapolis-based My First Bike Productions, which owns the "500" script, said the goal is to have the feature-length film ready for a premiere by May, in time for the centennial running of the 500-Mile Race.

The script was written by Hoosier screenwriter Angelo Pizzo, who wrote the movie "Hoosiers." He disclosed the availability of the script as early as 1996.

Prairie Hills is proposed in the cornfields about an hour east of Chicago and two hours north of Indianapolis, a few miles off I-65 near the tiny town of Lake Village.

Partners in the development include David Bowers, Carmel, and Jason Benson and Chief Executive Officer Michael Krupka, both in Hinsdale, Ill. Key figures in the track layout are race commentator Derek Daly and track designer Paxton Waters.

Similar to the Palm Beach Driving Club in Florida, the Aspen Motorsports Park in Colorado, the Autobahn Country Club near Chicago and Club Spring Mountain Motorsports Ranch in Nevada, the new motor sports playground in Indiana is geared toward car clubs and others looking for a safe and private place to exercise their need for speed.

"Prairie Hills is first a motor sport club. You'll also see an outdoor theater for 6,000 to 8,000 people for concerts, a hotel and water park, a conference center and garages. It will be the premier family resort for motor sport enthusiasts," Bowers said. "It will combine high-speed excitement with resort luxury."

Duke Energy (NYSE:DUK PRA) (NYSE:DUK) also has agreements to erect 240-foot-tall wind turbines on part of the site, generating electricity feeding the multistate power grid. Prairie Hills developers said the turbines are part of the features of renewable energy incorporated (NYSE:EGAS) in the site design.

Members of similar motor sports clubs include owners of vintage autos, car clubs, professional and semiprofessional race drivers and their teams and corporate executives.

Dues at the upscale Prairie Hills will range from $25,000 to $125,000 for the car aficionados who want to burn up the track in their Ferraris, Lamborghinis or Porsches.

Even in the troubled economy, the developers said other motor sports clubs are sold out each weekend.

"The Porsche Car Club of America will rent a track and pay $10,000 to $30,000 for one of their own events. We believe there is a strong demand for these facilities," Bowers said.

Such private facilities for motor sports across the country have become known as a legal place to speed, sometimes to test or learn driving skills, and share camaraderie and race with other car owners. Prairie Hills will be available for police departments in Indiana to teach driving skills for officers.

Prairie Hills is to include condominiums, retailing and restaurants, hotels, spas, swimming pools and other sports and amenities for families.

"Imagine you're flying in your private plane to our private landing strip. You call ahead to the concierge to have your car fueled and warmed up in your garage, so that when you land, you can jump in and head to the track. That can be the experience," Bowers said.

Newton County officials said the community is anxious for construction to begin but has seen many delays. "We've been talking about this for four years, but during the recession, it has been on hold for financing," said Jenn Whaley, the county's economic development director.

"It would mean jobs and probably bring other developments to the county, so it will be a good thing if it becomes reality," she added.

Krupka declined to disclose details of financing -- earlier estimated at $150 million and now pegged at close to $170 million -- except to say closing is scheduled within days on the first phase of private investment.

Newstex ID: KRTB-0095-47240380