Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, January 15, 1994 TAG: 9401150253
SECTION: VIRGINIA PAGE: A1 EDITION: NEW RIVER VALLEY
SOURCE: ANDREA KUHN STAFF WRITER
DATELINE: LENGTH: Long
Mike Plant, president of Medalist Sports, the bicycle race's organizer, said The Homestead had asked the Tour DuPont to help defer costs of the resort's scheduled stage finish May 10. Medalist made concessions, but not to a degree The Homestead found acceptable, Plant said.
"We reached an accord and decided it was not in the best interest of the Tour to pursue an arrangement for 1994 with The Homestead," Plant said. "The Tour was going to have to go out of pocket, and that's just not consistent with where the Tour is at this point."
Gary Rosenberg, president of The Homestead, said he could not in good conscience underwrite the Tour DuPont - an 11-day race billed as America's premiere bicycling event.
"The main concern we had with hosting the Tour DuPont is that we're currently faced with many difficult decisions," Rosenberg said. "We've had to lay off a lot of people, and to turn around and underwrite such an event sends mixed signals."
Plant said Medalist now would "more than likely" award Blacksburg the finish of Stage 6, which will begin in Lynchburg. Plant said he was negotiating the change with Blacksburg Town Manager Ron Secrist and other local organizers.
"Ron has been great to work with," Plant said. "Both Medalist and Blacksburg have a sincere interest in the changes discussed."
Beth Ifju, president of the Greater Blacksburg Chamber of Commerce, hedged on predicting that a Tour DuPont stage definitely would end in town: "There are still some things to be tied down with Medalist."
Still, "We don't see anything that is negative at all," she said. "We're all enthusiastic.
"I've not talked to a single business person in the county that doesn't think it's a great thing," Ifju said.
Secrist was out of town and could not be reached for comment.
The finish would cost Blacksburg about an extra $60,000 but would result in expanded media coverage and exposure. ESPN televises Tour stage finishes.
Plant estimated the usual costs for finishes at $80,000 to $100,000, with the brunt going toward hotel rooms and meals for cyclists, their teams and Tour officials.
If the Tour DuPont and Blacksburg come to an agreement, cyclists probably would be transported to Wytheville for lodging because Virginia Tech's graduation falls in the same week and hotel rooms would be booked. That would account for Blacksburg's lower total cost.
The Homestead had committed to provide 395 rooms and 750 meals.
The Homestead "asked us to make financial concessions that would be risky for us," Plant said. ". . . It was definitely a mutual agreement. I understand what's going on up there. They have to be in a cost-cutting mode."
The Homestead came under new management in October when Virginia Hot Springs Inc. sold the resort to Club Resorts Inc., a Dallas-based company. An agreement between The Homestead and the Tour DuPont had been reached before the sale.
Newly formed Management Company for Homestead Inc. now runs the resort, which has been negotiating with Medalist Sports for three months, Rosenberg said.
"We feel Medalist has done the right thing in looking for another site," he said. "We've reached an agreement that's win-win for everyone involved."
Plant and Medalist media and public relations director Steve Brunner said The Homestead could return to the Tour's route as early as next season if it presents a successful bid. Rosenberg reiterated the resort's interest in the event and said the parties had agreed to meet in June to discuss a possible stop on the 1995 route.
Police, public works arrangements and a rights fee are other costs involved with being host of a finish. Brunner said the direct financial impact of a finish site is about $500,000, but varies depending on the market and day of the week.
Sites that have finishes on a weekend or that butt up to a weekend generally make more money. May 10, the date the race stage would have finished at The Homestead and will now likely end in Blacksburg, is a Tuesday.
"The Homestead is a unique venue," Brunner said. "The cost varies a lot by market and, actually, The Homestead's cost has been less than other places."
On May 11, the cyclists were to be transported by car from The Homestead to Blacksburg for the start of Stage 7, a race to Beech Mountain, N.C. The resort would not have been financially responsible for the start of a stage.
"If you have a start and a finish, the costs are considerably more," Brunner said. He said it takes about 125 more hotel rooms to host both a start and a finish.
B.R. "Beaver" Shriver, a business owner in Hot Springs, said he did not see a significant increase in sales when the Tour had come through town the past three years.
"There are plenty more folks in town, but probably 90 percent of them are working with the Tour DuPont. They're pretty busy with the race itself," said Shriver, who owns The Outpost, an outdoor sporting goods store, and Bearpaw Books in The Homestead's hotel.
Shriver, who helped set up volunteer marshals for last year's race, said he was disappointed the Tour would not stop at The Homestead in May.
"It's a lot of fun and a lot of exposure to the area. That's where I see the big benefits coming from," he said.
Staff writer Stephen Foster contributed information to this story.
Memo: shorter version ran in the Metro edition.