TOURISM LINK DIRECTORY -
- the best way for website promotion

Sept. 10--The Indy Racing League's likely exit from the Homestead-Miami Speedway next year won't have a significant impact on Homestead, but the departure comes at a difficult time for the cash-strapped city, city leaders and economists say.

"I don't think we see that much business down here from the Indy races," said Yvonne Knowles, executive director of Homestead Main Street, a nonprofit that spruces up Homestead's historic district. "But any time we lose tourist dollars, it hurts us."

For the past two years, the league has hosted its finale at the Homestead Speedway, bringing visitors and prestige to the track -- the first to crown all of North America's major racing champions. On Thursday, Indy Racing League CEO Randy Bernard said in an e-mail that Homestead would not have an IRL race in 2011.

The announcement came just weeks after rumors surfaced that NASCAR was contemplating moving its series finales from Homestead to Las Vegas Motor Speedway. NASCAR, which owns and manages the Homestead track, said it will continue racing in South Dade.

The NASCAR races account for a $250 million impact on the local economy, said Homestead-Miami Speedway Spokesman Jay Rand. That's compared with an $81 million impact from all other events at the track -- including IndyCar racing.

"Definitely, you can't compare the loss," said former Homestead Mayor Lynda Bell. "It is a piling on. It's the last thing any community needs. I do not shrug it off. And I do not take it lightly."

Hector Hernandez, owner of El Toro Taco in downtown Homestead, said he's sad to lose the races. IndyCar fans spend more money eating out than NASCAR fans, he said.

"Golly, especially the way the economic situation is here in Homestead, it's going to hurt," he said.

Homestead has been hit hard by the real estate bust.

Fueled by cheap land and easy credit, developers flocked to Homestead a few years back. In 2007, Homestead was named the fastest-growing city in the nation among those with a population of 50,000 or more.

By 2009, the bubble had burst. One of every 49 homes was in foreclosure, the highest rate in the county, according to RealtyTrac, a real estate firm. This year, property values declined 31 percent, the largest decrease in the county, leaving a $3.6 million shortfall in the proposed budget.

The city has tried to remake itself through restoring its downtown and bringing in art galleries and antiques stores, along with restaurants and the local agricultural movement.

In addition, the population losses have tapered off. The city's population swelled over the last decade, going from 31,909 in 2000 to 59,415 in 2008, said Professor Stanley Smith of the Bureau of Economic and Business Research at the University of Florida. Between 2008 and 2009, Homestead lost about 1,800 residents. Between 2009 and 2010, the bureau projected a small increase of about 250 people.

University of South Florida economics professor Phil Porter dismissed the idea of IndyCar's departure meaning any real loss for Homestead's economy.

"The only people that will be harmed will be the people that might like to consume the event," Porter said. "Most of the time . . . sports demand so much from their communities that whatever positive benefit they have is dwarfed by whatever their communities give them."

Zinida Muao, the education coordinator for ArtSouth, a gallery in downtown Homestead modeled after South Beach's South Florida Arts Center, concurred.

While she noticed an uptick in restaurant crowds during the racing season, she could not attribute that to the Indy races.

"We did see some crews come downtown to eat and sightsee," she said. "But that was the NASCAR races. The Indy races? Not so much."

-----

To see more of The Miami Herald or to subscribe to the newspaper, go to http://www.herald.com.

Copyright (c) 2010, The Miami Herald

Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit www.mctinfoservices.com, e-mail This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or call 866-280-5210 (outside the United States, call +1 312-222-4544).