Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SATURDAY, July 30, 1994 TAG: 9408010047
SECTION: VIRGINIA PAGE: A-1 EDITION: METRO
SOURCE: By ANDREA KUHN STAFF WRITER NOTE: below
DATELINE: LENGTH: Medium
Cycle Roanoke Valley Inc., the private company formed last year to organize the valley's inaugural appearance in the nation's premier cycling event, is considering its financial situation before returning a contract for 1995 to Medalist Sports Inc., the Tour's Richmond-based organizer.
``There's no doubt we want to be back,'' said Delvis ``Mac'' McCadden, a Roanoke city councilman and president of Cycle Roanoke Valley Inc. ``But, with being a private company, we don't see the need to commit without taking care of the obligations we already have at home.''
McCadden said the company spent approximately $14,000 more than the $60,000 it had raised to host Stage 5, a 23-mile time trial that started at the Salem Civic Center and wound through Roanoke County before finishing in downtown Roanoke. The May 9 event was the turning point in the 1,060-mile race from Delaware to North Carolina and was praised by participating cyclists and Medalist as being challenging and well-run.
Cycle Roanoke Valley Inc. has been forced to seek additional contributions from major sponsors and has turned to some private foundations to cover the deficit, McCadden said.
The company also asked municipalities on the time trial course to help by contributing $4,000 from their discretionary budgets. Roanoke and Roanoke County obliged, while Salem declined. McCadden estimated Cycle Roanoke Valley Inc. was still $5,000 to $7,000 short.
``We [the Cycle Roanoke Valley Inc. board] plan on meeting next week to see if the financial obligations are taken care of,'' McCadden said. ``If they're not, we're going to have to take a long, hard look at whether we're going to go through with it [in 1995].''
McCadden said he expected the board to make a decision no later than Aug. 8. Contracts must be returned to Medalist by Aug. 15, and the tour route will be released before the end of the month.
In its decision, Cycle Roanoke Valley Inc. also is considering the fact that Medalist is requiring a rights fee next year, something that was waived in the valley's first venture.
McCadden would not disclose the amount of the fee requested in the contract, nor would Medalist President Mike Plant. Lynchburg paid $40,000 to host the Stage 4 finish and Stage 6 start this year, but Plant indicated the figure would be considerably lower for the Roanoke Valley. He said the fee had been ``received favorably and understandably'' by Cycle Roanoke Valley Inc. board members.
``It's not a huge amount because it's not a large community,'' Plant said. ``... [The fee] is consistent based on the size of the community and what we think their financial abilities are. The last thing we want to be is a financial burden.''
Plant said the Tour DuPont's favorable experience in the Roanoke Valley compelled it to return in the event's seventh year.
``Competitively, it was one of the most difficult and challenging time trials any of the cyclists had ridden. Coupled with the support and cooperation of the local organizing committee, I think it's pretty safe to say that Roanoke will play an active and pinnacle role in future Tours,'' he said.
Medalist inquires about the financial reports of each portion of the Tour. However, Plant said he was more interested in whether the locality can meet Medalist's bid requirements, which involve providing for free a certain number of hotel rooms and meals for the cyclists and their entourages. These requirements make up the bulk of local expenditures.
If Cycle Roanoke Valley Inc. decides to participate in the 1995 Tour DuPont, its fund-raising strategy will have to be adjusted, McCadden said.
``You'll probably see Cycle Roanoke Valley Inc. say, `Yeah, we want to do this,' but you'll also see Cycle Roanoke Valley Inc. become more aggressive in obtaining money. ... Now we've seen how much the cost is going to be and we can be more aggressive. We understand what has to happen.''
by CNB