Montreal's problem-plagued Formula E electric car race, heavily promoted by former mayor Denis Coderre and which failed to generate either mass interest or a profit, has been killed off.
Coderre's successor, Valerie Plante, confirmed the news at a news conference on Monday afternoon, saying organizers of the race failed to reach a compromise on the city’s terms.
The main problem is money — the costs of the race were spiralling out of control, and organizers were unable or unwilling to let the city take a one-year break to sort things out.
“This is where we draw the line. The Formula E will not be back in Montreal under these conditions,” said Plante, who called the 2017 event a “financial fiasco.”
The Coderre administration signed a contract with Formula E to hold the race for three years, with an option for three more. But Plante said keeping the race in Montreal would cost taxpayers between $30 to $35 million.
“My administration is willing to take risks and to invest money to promote Montreal, to attract international events, but not without a serious business case,” she said.
It's unclear how much the city would have to pay in penalties for bailing on the rest of its contract.
Plante added the organization in charge of the race, Montreal's C'est Électrique, is nearly $10 million in debt, it was asking to increase their line of credit from $10 million to $15 million — which would have led to more taxpayer's money being sunk into the race.
In addition, it was unclear where a 2018 edition of the race would be held. During the election campaign, Plante said she wouldn't hold it again in the streets of Montreal, citing the inconveniences suffered by local residents and business owners this past summer.
Circuit Gilles-Villeneuve, the obvious choice for an alternate site, is unavailable for next summer — the paddock area needs renovations, which are being carried out as part of the agreement to keep for Formula One race in Montreal for the next decade.