Furious Las Vegas business owners have confronted Formula One bosses to demand compensation over claims they lost more than $20million after the construction of a temporary pedestrian bridge prevented customers from reaching their stores.
The track area underwent a $500million transformation last year as organizers welcomed the Grand Prix to Nevada but local entrepreneurs complained access to their businesses were heavily restricted.
Owners of the storefronts, including Battista’s Hole in the Wall, Ellis Island, Las Vegas Souvenirs & Gifts, Jay’s Market and Ferraro’s Ristorante said the Flamingo Pedestrian Bridge has seen them lose a combined $23million because customers could not reach their stores.
They submitted letters to city leaders on January 2 demanding a financial ‘remedy’ as well as the deconstruction of the bridge before the Super Bowl set for February 11.
One of the business owners met with the Las Vegas Grand Prix’s chief operating officer Betsy Fretwell on Monday about the situation and said they were glad Formula One was addressing the issue.
‘We’re going to look at some numbers, and F1 will get back to us,’ business owner Randy Markin said. ‘So, hopefully, by the end of the week, we’ll see how we’re going to progress to get things settled for this year. And F1 said that they would like to work with us in the coming years.’
The Las Vegas Grand Prix’s second practice session got underway at 2.30am on Friday – with Charles LeClerc eventually finishing first after a loose drain cover had caused chaos
The track area underwent a $500million transformation last year as organizers welcomed the Grand Prix to Nevada but local entrepreneurs complained access to their businesses were heavily restricted
Owners of storefronts, including Battista’s Hole in the Wall (pictured), Ellis Island, Las Vegas Souvenirs & Gifts, Jay’s Market and Ferraro’s Ristorante said the Flamingo Pedestrian Bridge has seen them lose a combined $23million because customers could not reach their stores
Markin, who owns Battista’s Hole in the Wall Restaurant just off Flamingo Road, said his business lost as much as $5million when foot traffic collapsed due to construction, detours and closures caused by the race.
He met with Fretwell after the businesses won their fight to have the temporary bridge removed ahead of the Super Bowl, which is set to be held at nearby Allegiant Stadium.
‘It was a very good meeting. I’m glad that F1 is stepping up,’ Markin told KSNV.
He is hopeful there will be progress and that his business will be reimbursed for the losses incurred.
The business owner wants his employees, who he says lost around 80 percent of their income, to receive support.
Steve Hill, president and CEO of the Las Vegas Convention and Visitors Authority, was also present at the meeting and was praised by Markin. ‘Steve Hill stepped up and made sure that this meeting happened,’ he added.
DailyMail.com has contacted Formula One, the Clark County Commission and the Las Vegas Convention and Visitors Authority for comment on the proposed deal and the the business’ conerns.
The Las Vegas Grand Prix, which saw races between November 16 and 18, led to the removal of trees, closure of fountains in front of the Bellagio, draining the gondola canal at the Venetian and sights blocked with scaffolding and fencing.
The Flamingo Pedestrian Bridge was highlighted as blocking access to store fronts and creating traffic chaos which saw cab drivers unwilling to enter the area.
Formula One has not spoken publicly about the demand from the businesses to be reimbursed for their losses.
Within just eight minutes of the Las Vegas Grand Prix starting, a loose drain cover caused havoc in the first session.
Ferraro’s Ristorante (pictured) is one of the businesses calling for action to be reimbursed
Its executive chef Mimmo Ferraro said his family-run businesses lost $2million despite their close proximity to the Formula One track
While Jay’s Market owner Wade Bohn claimed he had to lay off five employees as sales dropped and says he is down around $4.3million in revenue
In a nightmare start, the first practice was scrapped after just eight minutes when a red flag was thrown by the race director after Ocon’s Alpine and then Sainz’s Ferrari suffered significant damage having run over the damaged part of the track.
Pictures then began to emerge of the drain cover that had been filled in by workers – with residue visible on top of the manhole showing how it had been quickly fixed to get the practice back on track.
Ferraro’s Ristorante is one of the businesses calling for action and executive chef Mimmo Ferraro said his family-run businesses lost $2million despite their close proximity to the Formula One track.
‘I mean, every small business that we are friends with around here was affected by that,’ he said.
‘So, it includes inclusion with the city, inviting them to be a part of it.’
Markin told Forbes his restaurant suffered its first-ever revenue loss last year. He said: ‘Every single night we’d have 100 to 200 cancellations with the same line, ‘I’m really sorry, but I can’t get down there,’ Markin told Forbes.
While Jay’s Market owner Wade Bohn claimed he had to lay off five employees as sales dropped and says he is down around $4.3million in revenue.
Clark County Commission Chairman Tick Segerblom admitted some mistakes were made with the race event.
‘We are very serious about looking back, going back and re-evaluate what happened, and try to figure out ways we can tweak the system or even dramatically change the system,’ he said.
‘Because, in a lot of ways, it was a great event for us. But in a lot of ways, we paid the price for it and learned the hard way.’
He added stakeholders will have the chance to look at the final economic numbers and see how road closures and detours impacted them.
Clark County Commission Chairman Tick Segerblom admitted some mistakes were made with the race event
Within just eight minutes of the Las Vegas Grand Prix starting, a loose drain cover caused havoc in the first session
Pictures showed how the drain covers had been filled to get the session back on track
‘The Las Vegas Grand Prix’ inaugural race exceeded our expectations in both economic benefit to the state and the international exposure the event brought to our city,’ Hill said in a statement.
‘We do recognize some were disproportionately impacted by the construction required to put on an event of this magnitude.
‘We learned a lot going through the first year, and we have started discussions with businesses near the Flamingo-Koval intersection to understand their concerns.
‘We will continue to work with them to find potential solutions and create opportunities so that future races are better for all involved.’
Business owners near the Grand Prix circuit sent letters to the Clark County Commission and the Las Vegas Convention and Visitors Authority earlier this month.
They asked for the Flamingo Pedestrian Bridge to be removed and threatened a class action lawsuit if they weren’t given ‘some kind of remedy’ for the financial losses incurred.
Formula One then announced the bridge would be dismantled by February 1.
Community activist Lisa Mayo-DeRiso said: ‘Government is not supposed to pick winners and losers in the business community. That’s not their job. So we’re looking for a remedy.’