»In which we are on a downward cycle

San Francisco Supes are all atwitter about fiscal improprieties in the Barclays Global Investors Grand Prix (nee San Francisco Grand Prix)
When this race, billed as "America's toughest bicycle race", moves to Topeka, it will be in time to clear our sights for the Tour of California. And in the even shorter term, we can push our pedals over to Golden Gate Park this weekend to check out Grand Prix Clark Natwick cyclocross event. Somehow it's not quite as thrilling when sponsors, merch, and ca$h enter into it, but hell! it's cyclocross. Gotta find a cowbell before this weekend .... Thanks to jimg for pointing it out.

Supes blast bike race sponsors
By Jo Stanley
Staff Writer

Despite special fee waivers worth hundreds of thousands of dollars, stunned supervisors were told at a hearing Monday that sponsors of a major San Francisco bicycle race stiffed The City on their 2004 bill of close to $90,000 for police services.

“You played me, you took advantage of me,” Supervisor Aaron Peskin said to Dan Osipow, one of the San Francisco organizers at Tailwind Sports, which helped get the San Francisco Grand Prix rolling four years ago. The name of the race was changed this year to the Barclays Global Investors Grand Prix.

Peskin, who agreed to Mayor Gavin Newsom’s fee-waiver proposal last spring after a contentious debate, said the nonpayment should have resulted in the permit for the 2005 race, held Sept. 4, being withheld altogether. The 8.8-mile-long race was the finale of the Pro Cycling Tour.

Osipow told supervisors he had “absolutely no idea” that the money was in arrears. “I look like a fool right now sticking up for them,” he said, explaining that his company is now merely a consultant to the race’s Philadelphia-based owner.

Police services for the September 2004 race added up to almost $336,000, but under a deal to keep the race in San Francisco through 2007, The City agreed to waive $1 in police fees for every $2 worth of extra taxes generated.

The hearing took place before the Government Audit and Oversight Committee, where Supervisor Chris Daly had called for a comparison of The City’s costs and benefits from the race and any negative impacts to local merchants.

A city-commissioned report from Economics Research Associates found that The City came out ahead by some $367,000.

But Board of Supervisors Budget Analyst Harvey Rose noted that researchers used a survey from the previous year about visitor spending and simply bumped up the amount by 7.5 percent for the passage of time. Another issue cited by Rose: Although the cycling company agreed to hand over 40 percent of its profits to San Francisco, according to Rose, it has yet to produce audited statements for 2004.

“I’d like to find out how in the heck we managed to issue a permit to these folks, how they’re so powerful,” Peskin said. He threatened to introduce legislation at today’s Board of Supervisors meeting that could bar the race’s promoters, San Francisco Cycling LLC, from receiving permits in the future.

Supervisor Chris Daly, who led the fight to block the deal, said he’s ready to see the show move away. “Change your name to the Topeka Cycling LLC and have fun,” he said.

E-mail: jstanley@examiner.com