City May Drop Grand Prix Contract

BALTIMORE (WJZ) -- Pay up or we'll pull the plug. That's the warning city officials have given the Baltimore Grand Prix. The racing organization currently owes the city more than $1.5 million.

Meghan McCorkell has more on why that's just the tip of the iceberg.

That $1.5 million doesn't include local vendors, who say race officials owe them money, too. Now the city is threatening this may be the end of the road for the Grand Prix.

Unpaid bills may bring the Baltimore Grand Prix to a screeching halt.

"Pay up, get your house in order or we're finished," said Councilwoman Mary Pat Clarke.

City officials say the Grand Prix owes big money and they want it by the end of the year. The city's demanding $750,000 for city services, nearly $500,000 for the state admissions and amusement tax, $250,000 for a race event fee and $50,000 for parking at city-owned facilities during race weekend. In all, the city says Baltimore Racing Development owes it more than $1.5 million and that number doesn't include local vendors who say Baltimore Racing Development owes them hundreds of thousands of dollars.

Cathy Vogel of Sunrise Safety Services says the Grand Prix hasn't paid a $200,000 bill.

"If we make it through this, we may have to lay off 20, 25 people in order to survive," Vogel said.

"We're sorry they haven't been paid and we anticipate paying them," said former Grand Prix CEO Jay Davidson.

Davidson says the company is restructuring but paying the city back hinges on another race.

"If they ask for us to do it without running the race again...I mean, no, we don't have the money just sitting there. Otherwise, we would have paid it," Davidson said.

Baltimore Racing Development says they are close to naming a new CEO. They are trying to reach a deal with the city and state that would allow the race to continue.

An estimated 160,000 people attended the first annual Baltimore Grand Prix. IndyCar has put the 2012 race on its schedule.