Viability of a rental/owner track in NE TX?

1

I know a few of you on here have had involvement in track operations in various fashions and am curious for your input as I investigate the viability of this project. I have high confidence in my abilities to manage the business and execute the construction project. Where I lack confidence is in forecasting market penetration and customer volumes.

So Question 1 for me is what solid tools and resources are out there to aid in forecasting potential customer volumes? The engineer in me is struggling with the uncertainty in this part of the process.

Question 2 is what pitfalls or mistakes should I be wary of?

Question 3 any general advice?

Brief summary of project and goals:

  • Develop combined rental and owner kart facility in NE TX.
    • Generate enough rental revenue to support and grow an owner karting community in the Texarkana/Tyler/Longview/Shreveport region.
    • Area previously had a moto/kart facility located 30 minutes south of Longview. Was closed due to strip mining activity.
    • No comparable facility within 120 miles.
      • DKC is 120
      • SpeedSportz is 175 miles
      • Several indoor rental facilities are 150-200 miles in Dallas/Houston
      • Zero similar facilities exist in N Louisiana or SW Arkansas
      • Zero similar in SE OK, but also no people there…lol…
    • Limited amusement activities available that would compete
  • 27 acre piece property with major highway/interstate frontage in NETX and minimal site work required.
  • 2 phase build out
  • Phase 1 focus on rental track, registration building, maintenance garage.
    • Rental track will likely be CRG Centurions
    • Uncertain on timing for adding lighting due to initial cost, but lighting needed
    • Uncertain how complex the design should be for proper rentals, looking at several facilities for reference.
    • Rental track width will be ~25ft
    • Base track design is 0.6mi with 8 corners. Will definitely evolve some.
  • Phase 2 add “pro shop” and owner track
    • Owner track width will be 30ft
    • Have referenced both US and Euro facilities for design ideas:
      • US - Orlando, Cinci, K1 Cali, Trackhouse, NCMP, Road Atlanta, SpeedSportz, DKC
      • Euro - Prokart Raceland, Lemans, Genk, Franciacortia, South Garda
    • Couple cut-throughs to allow limited multi-layout options
    • Connection to rental grid to allow 2 rental tracks to run.
      • If rental volumes warrant
      • For rental league events concurrent with walk-in rentals
      • For a rental event/track rental concurrent with walk-in rentals
      • Owner track can be run in an alternate configuration to allow owner access while running rentals on both
    • Paddock/parking area of approx 200,000 sq ft, likely gravel. To support potential large events.
      • The 2 largest venues near me have paddock space of 150-160,000 sq ft.
        • One is mostly gravel
        • One is 100% paved
    • Initial base track design is 0.82 miles in length, 16 corners, ~800ft longest straight, ~2220ft of total straights. I am certain it will evolve further…

I do not know if I will move forward with this. End of the day it could check the box for a long held desire for business ownership and an area of passion and interest. That does not mean it is necessarily an intelligent thing to go do! :face_with_peeking_eye:

1 Like
2

Sounds like you really put some time into this. A very exciting project. I don’t have much experience with rentals outside of an indoor facility that has changed ownership 3 times since it opened in 2016. It is now owned by K1. We used to go there a lot before getting invested in owner kart racing.

As a previous small business owner, getting people there, and getting them to return will need to be a large area to focus on. Marketing and facility upkeep should be huge considerations. Also, how can you keep them there? The K1 by us is connected to a bar/restaurant with a game room for kids. I think both businesses help each other out.

Good luck on this venture!