The South Chicago Velodrome Association recently announced that the city’s only bike racing track is probably going to lose its lease and cease operations. According to bike shop owner Marcus Moore, who has spearheaded recent efforts to keep the facility in the city, there’s still a glimmer of hope that the track can be saved. But this could only happen if landlord U.S. Steel agrees to relax terms of the lease, or else if opportunities arise to pay off the tens of thousands of dollars still owed to the velodrome’s manufacturer and/or find a new location for the portable facility.
Built in 2011 at 8615 South Burley on U.S. Steel’s former South Works site, the track supposed to be the first step in a grand plan for the South Chicago Velo Campus, brainstormed by luxury pet accessory mogul Emanuele Bianchi. After hosting races for adults, plus education programs for youth from the surrounding low-to-middle-income communities for a few years, Bianchi and his partners gave up on the project in September 2014, citing a lack of support from the Chicago bike community.
But Marcus Moore, owner of Yojimbo’s Garage bike store, and other cycling enthusiasts stepped in to stop the track from being repossessed by its manufacturer, V-Worldwide, based near Detroit. The advocates were able to raise about $30,000 out of the $110,000 owed to the company through crowdfunding and persuaded the owner to let them hold onto the track while they continued to fundraise.
The real estate company McCaffery Interests, which was managing the South Works site for the steel company and working with them on a plan to redevelop the land as “Lakeside,” agreed to let the new track boosters use the land rent-free. However U.S. Steele requires a whopping $15 million in aggregate coverage, while a typical track only needs $2-3 million in coverage, according to Moore.
As a result the velodrome association has had to pay about $2,500 a month in insurance premiums and they’ve struggled to keep up with this expense. While they have paid V-Worldwide a total of $39,000 for the facility, they’re now many months behind in payment and have periodically had to put of calls for donations to cover the insurance bill.
Moore, who says he’s needed to scale back his own involvement with the velodrome in order to focus on running his shop, says it looks like the boosters’ track racing dreams may have come a dead end. “It’s not totally conclusive yet, but technically our land lease and insurance expired Sunday night,” he explained.
U.S. Steel’s partnership with McCaffery collapsed last February, and the steel company is now looking to sell the land rather than redevelop it. As such, they’re only willing to renew the track’s lease until October 31, and they’re still not willing to lower the insurance requirements, Moore says.
Continuing the existing insurance would require a $6,091 payment up front plus monthly payments of about $2,500, but that’s a moot point because the current insurer isn’t interested in renewing the policy for only a few months, according to Moore. He added that it would be difficult to find new $15 million short-term coverage. Moore says he’s been negotiating with the steel company over the insurance issue recently, but so far they haven’t budged.