As the NASCAR race speeds into Chicago, how much financial benefit will it have?
CHICAGO (CBS) – The first ever Chicago NASCAR Street Race gets off the starting line Saturday, July 1, in Grant Park.
The 2.2-mile course twists and turns its way through significant sections of major downtown streets such as DuSable Lake Shore Drive, Columbus Drive, and Michigan Avenue.
Some of those streets began closing days before the Saturday, July 1, and Sunday, July 2 race days – causing traffic backups and headaches. They are expected to remain blocked off for several days afterward, according to the city.
Boaters will also be affected. The Chicago Yacht Club sent an email reporting it was "very disappointed" that it would have to shutter its Monroe Station from Thursday through Sunday because of the NASCAR Street Race.
So what kind of economic benefit is the city seeing from this Grant Park event compared to other festivals?
Under former Mayor Lori Lightfoot's administration, the Chicago Park District and NASCAR signed a permit agreement for access to Grant Park. The upfront fee is $500,000. That's less than for the Lollapalooza music festival, which overtakes Grant Park every August.
Between 2012 and 2022, Lollapalooza's fee was $1.5 million with $750,000 upfront – payable by mid-July.
New Ald. Bill Conway (34th) believes NASCAR will be a boon to the city.
"I think the city will get some citywide economic benefits," Conway said. "Chicago does tend to shine on a world stage."
But he did voice some concerns with regard to his ward – which was recently relocated from the Far South Side to the West Loop and much of the Loop itself.
"The 34th Ward will face significant inconveniences as a result in terms of traffic and tying up streets," Conway said. "Also, very concerned about public safety. We're going to be cancelling a lot of days off for our police officers."
As for the economics, looking at other Grant Park festivals and the money taken in from people familiar with the 2023 figures:
- Sueños Music Festival, a two-day event held late May on Memorial Day weekend, brought in $1.8 million.
- Lollapalooza, a four-day event held in August, expected to bring in $8 million.
At a June 14 Pedestrian and Traffic Safety Chicago City Council Committee meeting, Julie Giese – who is President of Chicago Street Course – told alderpeople 100,000 tickets are expected to be sold for NASCAR weekend.
At $2 per ticket per the Park District permit agreement, that would bring in an additional $200,000 – for a total of at least $700,000.
What's unknown is how much the 15% of merchandise sales and 15% of food and beverage sales will bring in. Those payments could take up to 90 days after the race event to fill city coffers.
"I am concerned that the economic benefits of NASCAR aren't going to be worth the costs," said Ald. Conway. "It will absolutely be a mess when it comes to traffic – you know, Lake Shore Drive is going to be closed from June 28 to July 5. Both sides are going to have to take a look at this in an after-action report, and then decide where we go from here."
The two-day NASCAR Street Race is expected to provide a $113 million financial shot in the arm citywide. That compares to a $335 million citywide economic impact from the 2022 Lollapalooza festival.
As for Lolla, what do they think about the rent disparity – paying many, many fold more than NASCAR for arguably a lot less disruption. Lollapalooza reps, when asked to comment, declined to do so.
The City and Street Race organizers were asked for, but were unable to provide, additional Park District revenue estimates for the first NASCAR event in Chicago.