The Clement family plans to close on its sale of ‘substantially all of their assets associated with” the Newton racetrack on Wednesday to a recently-formed company called Iowa Speedway, LLC. The pending sale was announced in documentation provided in advance of a special Newton City Council meeting set for noon Tuesday at city hall. The Newton City Council is being asked to ‘acknowledge and consent” to Clements US Motorsport Corporations intent to assign the development agreements in place with the city in connection with the track to Iowa Speedway, LLC. ‘The US Motorsport Corporation is proposing to change the ownership entity of the Iowa Speedway property in the near future to a company called Iowa Speedway, LLC’ City Administrator Bob Knabels report to council in advance of Tuesdays meeting states. ‘In conjunction with this change, the US Motorsport Corporation intends that all current agreements of the Corporation be assigned to Iowa Speedway, LLC.” City council consent is not required because the minimum improvements as defined in the agreements have been successfully completed. ‘However, in recognition of the potential benefits to the City of the proposed transaction, to the extent that any consent by City is required in connection with such assignment, the City hereby grants such consent as evidenced by the signature below’ a legal document from US Motorsport to the city states. In addition, the Newton City Council will act on a resolution Tuesday that assigns US Motorsport Corporations airport use and lease agreement to the new ownership of the track. The terms of both agreements are proposed to stay the same under the assignments. Iowa Speedway, LLC filed its certificate of organization with the Iowa Secretary of States Office effective Oct. 14. Little information about the company or its ownership can be gleaned from the filing other than its initial registered agent is CT Corporation of Des Moines, a corporate legal provider. Requests for information from Iowa Speedway officials on the planned sale have yet been returned. In early July 2011, the Clement family announced that it had taken over the majority ownership from the original developers of the facility, the Manatt family. The Clements paid more than $19 million for majority ownership. Six months after the change in ownership, the Clements brought a breach of contract lawsuit against Manatts. The case was settled out of court in August.( Newton Independent )(11-25-2013) News from November 24, 2013
