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Hamilton has the formal green light to host the New Zealand round of the V8 Supercar series, with resource consents approved for the street circuit event, to begin in April 2008.
City mayor Michael Redman said the event would annually bring in an additional $20.3 million in to
Hamilton between 2008 and 2014.
The figure was a "conservative" one, and projections could be as high as $40 million, excluding the multiplier or spin off effects, he said.
The event had been highly sought after due to its economic return and widespread media profile, as well as the excitement and vibrancy it brought to host cities.
"This achievement clearly reflects the confidence and energy that exists so tangibly in Hamilton. The vision shared by council and the community was so well aligned that the process quickly gained momentum and made this considerable challenge achievable."
Hamilton ratepayers will stump up with $7 million for the circuit to be prepared, but many more millions of dollars have been set aside the Long Term Community Plan to cover sponsorship fees.
The exact figure is unknown due to "commercial sensitivities," but it could be as much as $25 million over the next seven years.
Mr Redman called on the Government to help with promotion opportunities, but he was not specific about the amount council would seek from it.
A source close to the mayor said if it was good enough for Government to support the America's Cup and Rugby World Cup, it was expected money would be made available for the Supercars.
"They're arguing about a stadium in Auckland which will attract 60,000 for a one-off final. This event will attract 65,000 in one day, about 150,000 a year, for seven years."
It is understood 3000 Australians make the journey across the Tasman for the Pukekohe event, but Hamilton aims to bring that figure up to 5000.
Organised tours for rugby Bledisloe Cup matches attract around 2000 Australians annually, although it is understood another 2000 people make the trip independently.
Mr Redman said the relationship between the council and the event promoter, CSM Ltd, had been critical in securing resource consents.
CSM managing director Dean Calvert said the decision was a huge relief for tens of thousands of motorsport fans in New Zealand. "We knew that had this not been successful, then the V8 Supercar Championship, which is being courted by countries around the world, would not return to our country."
"There is a massive job ahead of us, firstly to run next April's event at Pukekohe for the final time and then to build this incredible street event in Hamilton."
Promoter planned to have tickets available from early next year with the Waikato community and patrons to the PlaceMakers V8 Supercar meeting at Pukekohe to be given preferential rights.
There is projected to be 156,000 attendees at the inaugural street race in April 2008, with daily capacity capped at 65,000 (the event will run across three days). In 2009 daily attendance will be increased to 80,000.
Chairman of V8 Supercars Australia Tony Cochrane said the street race in Hamilton would become the single biggest annual sporting event in New Zealand.
"We've built a fantastic fan base in New Zealand and I think this is the next huge step in that country. I'm sure it will make our sport even bigger again in New Zealand. It gives not only Hamilton a great showcasing opportunity but also New Zealand Motorsport."
V8 Supercar driver Greg Murphy said the announcement was great news for New Zealand drivers who competed in the championship.
"Going to Hamilton for seven years on a street race circuit is going to be phenomenal. It's going to put Hamilton on the map for motorsport for a very, very long time and they should be proud of what they have achieved."
"A street circuit takes the race to the people. That race is so close to the centre of the city. It's going to be amazing. I can't wait."