Thunder Mountain Speedway, outside of Olathe, is for sale only one and a half years after it was purchased. If it doesn’t sell soon, the bank will foreclose and it will be auctioned off by the end of the month.
“We were really hit hard by the economy and gas prices,” said owner Sean Gibbs.
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Gibbs said his plan was to establish a business structure, including driver pay and customer counts, and implement promotional measures to get a sound business going.
When he bought the property, there wasn’t much of a business structure, but more of a “hobby” structure, he said.
Gibbs got to work making improvements and boosting promotions, and it was working. Gibbs improved the track and updated equipment. He gave deals to families, making it a more family-orientated venue. Admissions grew. The venue held several small concerts and fundraisers. He started a junior fan club and got young people involved in the races. He collected a group of good employees and sound volunteers.
However, it wasn’t enough.
“The problem was this. Since there was no real structure behind the business prior to owning it, we had to own it a full year to keep track of records, books, drivers and fans — what worked and what didn’t,” Gibbs said. “The problem was that after the first full year, gas was over $4 a gallon.”
Gibbs drivers were coming from all over the state. When prices jumped, his driver count dropped. He saw worried fans as well.
“When fans are worried about losing jobs, do they spend it at the track or put it in their gas tanks?” he said.
Gibbs said he was able to make a profit from the track in the first year. However, it wasn’t enough to pay back what he had borrowed. The bank wanted out and he was still paying into the pocket of the previous owner via a deal he made, he said. And with the possibility of foreclosure, he had no luck obtaining a business loan.
“We were able in the first year to do a budget that would put us in the green and do a profit, but was not able to keep it open the second year to prove that we could do it,” he said.
Now, the property and everything on it will be auctioned off Jan. 28 at 10 a.m. with a starting bid at $220,000. The bid includes the 38.75 acres located at 59039 Amber Rd. in Olathe. It also includes everything from the tractor and backhoe to the cash registers and grand stands.
Gibbs hopes to sell it before the auction and has some interested parties, he said. He’s asking $270,000 in the hope that people set in that price to avoid possibly paying more at an auction.
No matter the next owner, he hopes it’ll stay a motor track because he believes it has potential.
“It was doing well,” he said. “We had nothing but compliments the last year and a half. ... It was just a lot of challenges the first year, and we weren’t able to overcome those challenges.”
Contact Kati O’Hare via e-mail at katio@montrosepress.com
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