LAS VEGAS (KTNV) — Local business owners who say they lost millions during construction for the Formula 1 Las Vegas Grand Prix now plan to take legal action.
Attorneys are now working on a lawsuit as local business owners, mainly near Koval Lane and Flamingo Road say negotiations with Formula 1 did not go as planned.
"Sadly we're at this point where we're with attorneys and they're doing their thing," said Battista's Hole in the Wall Italian Restaurant Owner and Manager at Stage Door Casino Randy Markin.
Markin is one of 7 business owners planning to sue Formula 1 over lost profits during the race last year.
"We're not trying to make any extra money on this, we just want the money that we lost," said Markin.
The businesses part of the lawsuit as for now are Jay's Market, Ellis Island Hotel & Casino, Las Vegas Souvenir and Gift Shop, Ferraro's Ristorante, Arco, The Meridian, plus Markin's Battista's and Stage Door.
The businesses asked F1 for a combined $25 Million to cover the losses they suffered during Formula 1 construction last year.
He says they provided previous tax statements to show their losses and sat at the negotiation table with F1.
"There was no counter, we showed them what the numbers were, they saw it, they never countered, they never came up with a different offer," said Markin.
Channel 13 reached out to Formula 1 to talk about these meetings, they denied the interview request. However, earlier this year at the Preview Las Vegas event, F1 Las Vegas Grand Prix CEO Renee Wilm addressed traffic concerns on stage saying they made mistakes.
"We got a lot wrong truth be told, obviously the traffic issues were very challenging in a way that no one expected," said Wilm
As for the meetings with business owners, F1 sent Channel 13 this statement that reads:
"Over the last few months, Las Vegas Grand Prix executives have had regular meetings with businesses adjacent to the race circuit to collaboratively address their concerns and develop strategies to mitigate the business impact of future races. We hope to continue having constructive conversations but will not comment on litigation."
Markin says he is still open to talking with F1 about compensation and says the lawsuit is the last resort.
Markin did not disclose the firm working on this case, but says several attorneys have been working with them for weeks. He also tells Channel 13 that other businesses along the circuit, have expressed their interest in joining the lawsuit, too.
"Right now we've been contacted by about 100 that want to jump on board," said Markin.
As for the 2024 F1 Las Vegas Grand Prix and races to come, these businesses say they hope they can work with F1 to find other ways to bring in business during construction and race week.
F1 officials said during the Preview Las Vegas event they plan to work more with local small businesses as well through the coming years.
F1 still has to meet in front of the county commissioners to approve the permit to build the track for this year's Las Vegas Grand Prix. If that is approved, the Grand Prix is expected to race through Las Vegas November 21 - 23.
Months of negotiations with race organizers and local officials didn't net the desired results for those impacted by the construction, according to a statement from Lisa Mayo-DeRiso, who acts as spokesperson for seven area business owners.
Several people who own businesses in the area of Flamingo Avenue and Koval Lane told Channel 13 a temporary bridge put in place for the race diverted traffic away from their businesses, decimating sales and causing some to lay off employees.
"After months of an earnest effort by the impacted business owners to negotiate a reimbursement for their losses of over $25 million, those negotiating efforts have failed and have left the businesses with no other option but to seek legal remedy," Mayo-DeRiso stated.
"It's unfortunate because any long drawn out lawsuit remains in the press for a long time and continues to hurt the Las Vegas brand," she added.
A spokesperson for the Las Vegas Grand Prix told Channel 13 officials "hope to continue having constructive conversations but will not comment on litigation."
"Over the last few months, Las Vegas Grand Prix executives have had regular meetings with businesses adjacent to the race circuit to collaboratively address their concerns and develop strategies to mitigate the business impact of future races," the spokesperson wrote.
Multiple business owners who spoke with Channel 13 said their profits took a nose dive after track paving began in April 2023.
Randy Markin and Wade Bohn are among those who previously threatened to sue the Las Vegas Grand Prix.
Markin owns Battista's Hole in the Wall and manages the Stage Door Casino. In previous interviews with Channel 13, he said his businesses lost approximately $5 million last year.
Bohn, who owns Jay's Market, says his businesses saw approximately $4 million in losses.
The Flamingo bridge was fully removed on January 31, about two-and-a-half months after the race.
In previous statements after the race, Formula 1 officials said the Las Vegas Grand Prix was the most successful race of the 2023 calendar.
They've also said they expect the impact of race construction will be much less this year.
