By Ellen Rugeley
Tavo Hellmund, owner of Full Throttle Productions, has filed a lawsuit against investors Bobby Epstein and Red McCombs and various companies and managers involved in Circuit of the Americas (COTA) $300 million project currently under construction in Central Texas.
The suit alleges that the project has cost more than anticipated and has resulted in reductions in plans for the grandstand, pedestrian bridges over the track, paved parking, concessions and restrooms.
In the suit, Hellmund alleges that the project has been hindered by misinformation and poor financial support. He also claims that access and emergency routes to the COTA were inadequate and remain behind schedule.
The suit does not specify damages, but claims that Hellmund had an agreement for an $18 million buyout that was not fulfilled, and that he was scheduled to make $500,000 a year for ten years as chairman of the Formula 1 U.S. Grand Prix.
Hellmund is also seeking to obtain McComb’s 20 percent stake in the company for $8 million, thus causing McCombs to decide whether to sell or buy Hellmund’s share by April 12, with the closing occurring no later than May 25.
According to the Austin American-Statesman, Hellmund might also seek to regain management control of the project. Hellmund, “hopes to steer the now-teetering Circuit back on track and determine how to best proceed, if at all, to acquire Epstein’s remaining interest in the company.”
Epstein said that he was unaware of the suit and alleged that Hellmund has not worked for COTA in a long time. COTA management released a statement claiming that Hellmund, “has been found to be in breach of contract by Formula 1 and he has not fulfilled his agreements.”
However, Hellmund and his lawyer maintain that he is still the chairman of the F1 race, saying, “despite Epstein/McCombs public assertions to the contrary, Hellmund has neither quit nor been terminated.” While he does acknowledge moving out of his office located at 301 Congress Ave, on October 25, 2011, Hellmund maintains that it was because he believed an $18 million buyout was supposed to be finalized at Bernie Ecclestone’s London office on that date. Ecclestone is the president and CEO of Formula One Management and Formula One Administration.
COTA officials responded to the suit by saying, “We are creating the most incredible entertainment and racing venue in the world, construction is on schedule and seat license and suite sales are very strong.”
The inaugural race is scheduled for November 18, 2012.
