Auction begins to sell Topeka property at former racing facility site
Owner Chris Payne announced Friday he’s begun auctioning off the Topeka properties that formerly served as the site of Heartland Motorsports Park.
The online-only auction runs through July 17 at Land Auction | Heartland Motorsports Park, Payne said in a news release.
“A rare opportunity awaits those seeking prime real estate in the growing market of Topeka,” the release said. “Heartland Motorsports Park, a premier motorsports facility with more than 621+/- acres and significant infrastructure, is now up for auction.”
The properties up for bid include 17 buildings and 20 tracts of land, the auction website said.
Motorsports Park properties being sold as one auction tract
Payne told The Capital-Journal last month he doubted Heartland Motorsports Park would be purchased as a racing and entertainment facility. Still, the auction’s rules appear to allow for that to potentially happen.
The auction allows for bidders to buy individual or multiple tracts, catering to investors’ and developers’ specific growth strategies, Payne’s announcement said.
“The individual county parcels surrounding the race park consist of 19 auction tracts of vacant land that can be developed for industrial properties — these are being offered with no reserve,” he said. “The 10 remaining county parcels are combined into one auction tract, subject to seller confirmation, which encompass the Heartland Motorsports Park, including buildings, racetracks, and all its facilities.”
Owner plans to pay all the property taxes he owes
Payne — whose company, Shelby Development, LLC, owns Heartland Motorsports Park — closed its doors and ceased operations after its racing season finished late last year.
Shelby Development owes Shawnee County more than $3.2 million in outstanding property taxes and penalties, with the total continuing to rise.
Payne told The Capital-Journal last month he planned to pay all of the property taxes Shelby Development owes the county.
“The auction will consist of selling individual and multiple parcels collectively,” he said. “The goal is for sale proceeds to produce enough revenue to pay all outstanding property taxes. Shelby will cover any shortfalls, as all taxes will need to be paid in full to rightfully transfer ownership of each parcel to its new owner.
What makes the property attractive to potential buyers?
Kansas City, Missouri-based United Country | Heritage Brokers & Auctioneers is handling the auction, which “offers flexible options to meet diverse business development needs” and “presents the unique potential to transform the acreage in a thriving industrial park,” Payne’s announcement said.
“This is a rare opportunity to acquire a unique operation, with the potential to transform the acreage by developing numerous industrial properties,” the auction website site said. “Heartland Motorsports Park is a premier destination with diversified possibilities, offering incredible opportunities for a new investor in a growing and expansive market.”
Heartland Motorsports Park sits in the heart of Topeka’s development path and offers utilities that include municipal water, sanitary sewer and electricity, with an adjacent Evergy substation, Payne’s announcement said.
“It’s approximately 89,000 square feet of buildings allow for a potential head start to development projects,” he said. “The ample frontage along Topeka Boulevard and S.E. Gary Ormsby Drive provides exceptional visibility and accessibility. The park is surrounded by major corporations like the Walmart Distribution Center and Mars North America Candy Plant, highlighting the area’s strength and potential.”
How did the facility’s Shawnee County tax bill get so large?
Payne since early 2016 has owned Heartland Motorsports Park, which hosted events that included the Country Stampede music festival and the Menards NHRA Nationals, a major drag racing competition.
Payne contended the county’s appraised valuation of the Heartland Motorsports property is much higher than its actual market value, and that the facility was consequently being “taxed to death.”
Overland Park-based Valbridge Property Advisors, working as a third-party appraiser for Shawnee County, appraised the property’s value at $9.05 million in a report it provided in February 2023 to the county.
Payne contends the property’s fair market value is close to the $2.4 million he paid to buy the facility.
He said he paid the facility’s 2016 property taxes but hadn’t paid them since because the county has been taxing him by appraising its value at far more than he’d be able to sell it for.
However, the county ended up winning its tax battle with Payne when the Kansas Court of Appeals ruled in its favor.
County commissioners said in May 2023 that Kansas law banned them from complying with Payne’s request that the two sides cut a deal to resolve their years-long property tax battle.
They quoted a Kansas law that says the county cannot “release, discharge, remit or commute” past tax liability if the valuations involved have not been appealed or challenged by the taxpayer.
Contact Tim Hrenchir at threnchir@gannett.com or 785-213-5934.
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