CRAIG T. KOJIMA / CKOJIMA@STARBULLETIN.COM Auto enthusiasts surrounded the state Capitol yesterday to encourage the preservation of Hawaii Raceway Park as a racing venue. Keo Palimoo of Waipahu sat in his '67 VW built for show.

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Racing buffs rally at
state Capitol for new track

The Kalaeloa raceway will close
when its lease expires next year

Hundreds of racers and race fans turned the grounds of the state Capitol into an auto show yesterday, showing off their high-performance cars, motorcycles and other vehicles at a rally to support a legislative proposal to build a new racetrack on Oahu.

Star-Bulletin Legislature Database Star-Bulletin Legislature Guide (PDF, 1.9 MB) State Legislature: Bills & Hawaii Revised Statutes

The proposal (House Bill 994) would allow developers to claim up to $50 million in tax credits on investment in the building of a new motor sports facility to replace the aging Hawaii Raceway Park in Kalaeloa.

Mike Oakland, president of Hawaii Motorsports Center, which operates the raceway, said a new facility is needed because the track's current lease expires in April 2006.

"The racetrack is closing," Oakland said. "If we don't get this thing done, what's going to happen is you're going to have three new racetracks -- they're called H-1, H-2 and H-3."

Oakland noted that investors would only be able to claim the tax credit after five years and would only be able to claim an amount equal to the amount of new tax revenues that are generated by the new facility.

'We have to prove that we're generating new money before we get a credit," Oakland said.

Versions of the bill in the House and Senate have advanced and next face hearings before each chamber's money committee.

Similar bills have failed in the past, with critics citing the financial loss the state would incur.