Monterey reaffirms commitment to SCRAMP

With its decision to continue with SCRAMP and the three-year facility management agreement it created at the beginning of the year, board member Mary Adams, who supervises the district where Laguna Seca resides, demonstrated her reluctance to hand the famed circuit over to a new entity like FLS.

"Looking at a long-term relationship with a start-up didn't seem like a wise investment involving such an important asset for the county," Adams told The Monterey Herald. "I think for me and perhaps for other supervisors we were really looking at a business decision on behalf of the residents of Monterey County. This was a very laborious, time-consuming process to reach the same conclusion we reached earlier this year. I think we'll stay on the same path at least for the time being."

Under the direction of Adams' predecessor, the board sought proposals from multiple parties to replace SCRAMP on two separate occasions. In its last venture, which concluded late in 2016, the board chose the promise-filled FLS organization to lead Laguna Seca into the future.

Although the FLS claimed to have tens of millions of dollars to donate and renovate the aged property in exchange for receiving a long-term management contract, the board and FLS were unable to come to terms. The FLS' vast angel investment was also revealed to be a much smaller sum of money the group had in its hands; the large, attractive investment figure was determined to represent funds that were verbal commitments from its supporters rather than actual dollars in the possession of FLS.

With the golden goose looking more leaden than expected, the newly installed Adams expedited the creation of a fresh contract with SCRAMP, which has run Laguna Seca since it opened in 1957, to stabilize the strife-ridden property.

In the new agreement, the county made one key change by taking control of concessions at the park, leaving SCRAMP to concentrate on the management of the circuit and surrounding campgrounds. In what came to light in recent weeks, steady lobbying and pressure from the FLS group to open a new round of discussions led to the board revisiting the topic of a management change. By acquiescing to those calls, the circuit returned to a familiar place of destabilization.

The newest offer from the FLS, as cited by The Herald, involved its group offering "$10 million upon signing a long-term deal, as part of $50 million over 25 years."

The lump sum payment would be beneficial, but the remainder – approximately $1.5 million per year for the length of the 25-year contract – would not appear to make a great difference to the profits the board anticipates generating on its own.

Where the $50 million offered in 2016 caught the attention of everyone in the county, the revised proposal with $10 million up front and a slow investment of the remaining $40 million through 2042 could have led Adams and other board members to arrive at a less compelling reason to sever ties with SCRAMP.

Although the county has held firm with SCRAMP, one significant modification was made earlier this week in the repositioning of former CEO Gill Campbell.

A new plan, crafted between both parties, has seen the splitting of management duties once held by the CEO. Going forward, a new CEO will be hired to control the financial and operational aspects of the facility. The managment of event creation, planning and promotions, which also fell under Campbell's leadership, has been removed from the CEO's duties. Campbell, who came to SCRAMP with an extensive background in event management, will fill the new event role effective immediately.

SCRAMP president Michael Smith will act as Laguna Seca's temporary CEO while the search for Campbell's replacement is conducted.

"This is a response to the needs and plans of the new SCRAMP that began operation under a new agreement and structure with the (county) in January," Smith told The Herald. "It will enable SCRAMP to address the increased demands of running the entire Laguna Seca Recreation Area while staying focused on an ambitious plan for racing and non-racing events at the facility. The realignment allows Gill and her team to focus solely on ensuring future success to meet SCRAMP and Monterey County's shared vision for the future of Mazda Raceway Laguna Seca."

For now, it would appear Laguna Seca can move forward and continue with the multiple renovation projects that began earlier in the year.

Provided the board is willing to avoid more unnecessary distractions and focus on its current contract with SCRAMP, it's entirely possible the county and race fans could prosper throughout its duration.