Hamilton City Council has secured the rights to the lucrative V8 Supercar race that Auckland and Wellington turned down.
The cars of the Australian-based series will race around the streets of Frankton and the pit area is understood to be in Mill St, recently upgraded to four lanes.
The contract between Avesco - the V8 Supercar governing body - and the Hamilton City Council will last for eight years, beginning in 2008 and ending in 2015.
The green light for Hamilton will come as a bombshell to other bidders who would have assumed they were still in the running for hosting rights. Whenuapai, Wellington, Hampton Downs, Taupo, and Manfeild had hoped they might get a chance to run the popular races.
Hamilton Mayor Michael Redman is understood to have been involved in the deal for the past eight months, but the rest of his council was briefed for the first time only last week.
This week the council unanimously supported the idea of hosting the Supercars.
Mr Redman acknowleged today that there would be issues surrounding resource consent. He said: "It's early days and we are sure there will be issues that need to be worked through to ensure that any adverse effects of the race are minimised and that the event has widespread local support."
The council will need to publicly notify the event.
The president of the Waikato Chamber of Commerce, Steven Saunders, said there was an understanding that resource consent would be granted, although a public consultation process was still needed.
"Hopefully Hamiltonians, and those in a position to decide, will take the sensible option. The direct economic benefit is $175 million, that's dollars new to the region which will stay for the duration 2008-2015. It's a huge win for Hamilton."
Mr Saunders said the potential viewing audience for the race ran into the millions, and an estimated 200,000 people would attend the event.
The Supercars raced in Shanghai, China, for the first time last year.
Tony Cochrane, chairman of Avesco, could not be contacted for comment yesterday as he was in a board meeting all day.
Business owners in Frankton described the news as a shot in the arm for the area, and said Frankton was a perfect fit for an event such as the V8s.
Frankton is largely an industrial and retail area. One of the biggest businesses is home furnishing shop Forlong's, and director Helen Forlong said she would not object to the event.
"I think it's wonderful. Frankton is an area full of businesses that will love the idea - there are panelbeaters, car yards, car painters, wreckers, dismantlers, warrant of fitness shops - it will be great exposure for them. Noise won't be a problem, it's quite an industrial area."
Hundreds of people attended the Frankton markets every Saturday but Ms Forlong felt they had no cause for objection. "Yes it will disrupt them, but so does thunder and lightning.
"They [stall operators] only run for about five hours and it's only one weekend in the whole year ... I'm sure it won't be a problem."
Retailer Bill Lee, 72, of the fish and chip shop Seafood Grotto, thought the news was marvellous.
"I'm quite staggered really. I'm a bit of an old petrolhead, so I think it's great. I didn't think our council could ever get off its hands and agree."
He said he would be surprised if any businesses in the area would object to the Supercars.
Residents will need to be consulted by the council before the resource hearing process can begin.
Tainui chief executive Hemi Rau said he had been briefed by the mayor yesterday about the plans.
"I think it's fantastic. It's great for the city's growth and development."
A rival bidder, Peter Sinton of the Whenuapai effort, found it hard to believe the news yesterday.
"Avesco would not settle with any venue unless it had a resource consent - they have been consistent with that since Wellington."
Avesco has consistently touted its preference of a street race over a track.
Last year New Zealand driver Greg Murphy also said he would favour a street circuit for the sake of the motor-racing public. "It's not a case of wanting a street race - New Zealand fans deserve an event like that."
The race they didn't want
2004
Auckland City announces its plans to host a leg of the V8 Supercars around Victoria Park. It claims huge financial spin-offs. But Transit, the national motorways body, North Shore City and some residents object, saying the traffic disruption will be massive.
Auckland City pulls the plug in November after independent commissioners turn down resource consent, saying impacts are too great.
2005
Wellington gives itself 24 months to prepare for 2007 race. In May it dumps plans for the race, citing the time, cost and uncertainty surrounding the need to get resource consent approval. 12,000 people made submissions.
2006 V8 Supercar events
Adelaide: March 23-26.
Melbourne: March 30-April 2.
Pukekohe: April 21-23.
Perth: May 12-14.
Shanghai: (To be confirmed) June 9-11.
Darwin: June 30-July 2.
Brisbane: (Ipswich) July 21-23.
Sydney: August 11-13.
Melbourne: September 8-9.
Bathurst, New South Wales: October 5-7.
Gold Coast: October 19-22.
Launceston, Tasmania: November 10-12.
Bahrain, November 22-24.
Grand final, Phillip Island, Victoria: December 10.
- additional reporting NZPA
Hamilton grabs V8 Supercar event
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