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How a revived
raceway boosts the Danville area
by
Peter Galuszka
Virginia
Business
April 2003
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Rebuilding
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Spotlight on growth and
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- Averett University
President Dr. Richard Pfau on the university and its
ties to Danville
Martinsville-born
Connie Nyholm was working as a real estate developer
in New York City when she chanced upon what is probably
the most unusual — and one of the most fruitful
— economic development projects in the Danville
area. Nyholm, who put together deals for Rite Aid pharmacies
and Pep Boys auto parts stores, was introduced to New
York investor Harvey Siegel, a vintage race car enthusiast,
who wanted to find a racetrack somewhere on the East
Coast.
Finally,
in 1998, the pair zeroed in on what would become the
Virginia International Raceways complex. It was an old
track about seven miles east of Danville on rolling
hills in a bucolic setting owned by a local family.
From 1957 to 1974, it had been part of the NASCAR circuit
and the likes of Roger Penske and Richard Petty had
competed there. But by the early 1970s, the track had
fallen on hard times. Gasoline price hikes meant fewer
spectators came. The track was taken over by rowdy dirt
bikers so the family shut it down, converting it into
a cattle farm.
Today,
the 1,200-acre complex that Nyholm and Siegel opened
in March 2000 has become a major destination for the
auto car industry and a huge boon for the Danville area.
Crowds of spectators and race teams throng there on
weekends to watch Lotus-style racing. Automakers such
as Mercedes, Porsche, Chevrolet and Nissan use its pastoral
setting to unveil new models and shoot commercials,
often before big crowds of the automotive trade press.
Instructors teach hard-core car enthusiasts how to take
a high-speed turn in a European-style race car or spin
through mud and water in sport utility 4X4s. And, in
an unusual twist, security officials from the government
of Colombia to American mercenaries preparing for deployment
to Afghanistan and the Persian Gulf learn evasive-driving
techniques at the track. “We never figured on the
extent of our security business, but after 9-11 security
training has become a much more significant part of
our training than we expected,” Nyholm says.
The
complex features two tracks, including a 3.27-mile course
that has tight turns and blind spots. A third track
is being planned. There are bleachers for spectators
and staging areas for car crews, plus a country clubhouse
at a restored 1840 restored plantation building replete
with a gourmet chef. “Our drivers say it is a phenomenal
track,” says Jay Allison, a spokesman for Porsche
North America in Atlanta. Porsche is negotiating with
VIR to unveil a new model car sometime this summer.
Porsche won’t be the first. Two years ago, Mercedes
Benz used the pastoral milieu at VIR to unveil its G-series
of sports utility wagons before a swarm of trade reporters.
All
of this is a boon for Danville since VIR guests need
room and board and Danville is the closest city. “You
can’t get rooms on race weekends,” says Allen
Hayes, tourism manager for the city of Danville. In
fact, three-year-old VIR has prompted a mini-boom in
hotel construction. Under construction now are a Courtyard
by Marriott, a Sleep Inn and a Best Western motel. When
completed by early summer, the three hotels will add
another 242 rooms to Danville’s roster of 853 hotel
rooms.
What’s
planned for the future are more investments and expanded
projects, says Nyholm, who is part-owner of the track
complex with Siegel and operates through a company called
Blue Chip Resorts. So far, they have put $18 million
into the facility and plan on a total of about $40 million.
They hope to open a research center with Virginia Tech
and Danville’s Institute for Research and Technology
that will explore using unmanned cars and vehicle dynamics.
Also being considered are co-marketing partnerships
with NASCAR tracks at the South Boston and Martinsville
raceways, both about 25 miles to the east and west of
VIR. Already, VIR has a consignment store where vintage
race cars are put up for sale. Similar arrangements
could be made for selling stock cars.
Besides
being a success beyond her financial dreams, VIR has
changed Nyholm’s life in other ways. Siegel still
lives in New York and comes down to visit regularly,
while Nyholm has moved nearby. Besides boosting Danville,
VIR has helped a Virginia girl come home.
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