Furious supervisors may cancel 2006 Grand Prix due to unpaid bills

By Pat Murphy

November 15, 2005

Irate city supervisors may cancel next year's San Francisco Grand Prix bicycle race following revelation last night of unpaid city fees from the 2004 event.

The revelation drew contempt from Board President Aaron Peskin, who first sponsored the event years ago, in a committee hearing called by Supervisor Chris Daly for event financial review.

"You played me for a fool," Peskin told event organizers.

He pledged legislation canceling city agreement to subsidize the Grand Prix through 2007.

"It's a sham. It's not worth the paper it's printed on. We gave them an inch. They've taken a mile. This is preposterous," said a furious Peskin.

Budget Director Noelle Simmons could not explain how a permit oversight committee granted permits for this year's race despite non-payment for 2004. A group of city agencies, known as the Inter-departmental Staff Committee on Traffic and Transportation, awarded event approval.

Simmons agreed organizers should be held to the contract requiring city reimbursement, but had no explanation why the bill was not collected.

The event, which draws internationally renowned cyclists, receives a city subsidy in the form of reduced fees in return for projected business revenues.

Actual police costs were $335,000 for the 2004 event, although organizers were billed only $89,924 under city agreement to charge $1 for every $2 in projected tax revenues.

A city commissioned study indicated the 2004 race generated $365,000 in after cost revenues, an amount challenged by Budget Analyst Harvey Rose.

Economic Research Analysts arrived at that amount not by studying 2004 revenues, but by simply adding 7.5% to 2003 city income, Rose stated.

In addition, race organizers have not produced audited statements for 2004 despite agreement for 40% of profits going to city coffers, added Rose.

Daly appeared relaxed in his sense of vindication for past skepticism toward the city agreement.

"Change your name to the Topeka Cycling LLC and have fun," Daly suggested.

Luke Thomas contributed to this report.

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