By LEE BLOOMQUIST for Mesabi Tribune, published Dec. 31, 2024
HIBBING — Hibbing Raceway’s future management has been decided.
The Hibbing City Council late Monday afternoon awarded management of the historic three-eighths mile dirt race track to XR Events.
XR Events is operated by Barry Braun of Silver Bay.
“It wasn’t planned,” Braun said. “But the opportunity arose and it was something we looked at and were considering. We’re close to home and have traveled a lot, so with this we’re not going to have to travel as much.”
XR Events has promoted racing events across the country, including XR Northern Storm races at Hibbing Raceway.
Braun said XR Events headquarters will move to Hibbing.
The racing facility will also serve as a training facility for XR Events employees in areas such as public address announcing, Braun said.
“We are going to build a base and headquarters that would be a national office,” Braun said. “To inherit a Saturday night track is incredible and I don’t think it’s in that bad of shape as far as the facility. We have been impressed with the Northern Storm crowds there. The support is there, but the track has had some challenges. It’s run like a business now. It needs to operate well and grow.”
City officials hope that awarding management will solidify operations at the race track.
It also marks the end of nearly 40 years of race track management by the Iron Range Racing Association.
At least two meetings with three groups interested in managing the race track led to the city’s decision, Nick Arola, Hibbing City Services director told the council.
The meetings included discussions about the venue and both short-term and long-term capital improvements at the race track, Greg Pruszinske, Hibbing city administrator said.
In the short-term, improvements in the track surface will be pursued, Pruszinske said.
“We will take a look at the track surface in 2025,” Pruszinske said. “We want to have a good racing surface.”
Braun says adding new material to the track and/or reshaping it, is top priority.
“Number one is the track,” Braun said. “Everything is based on the track. If the track is good, the racers like it and the fans like it.”
Over the long-term, several other improvements are also on the table, he said.
Additional catch fences to keep spectators safe, more lighting and possibly camping areas are longer-term goals, Pruszinske said.
A rental rate and assurances are to be finalized, he said.
“My vision is it’s a sliding scale so we can all benefit as the track ramps up,” Pruszinske said of a rental rate. “We want to do what’s in the best interest of the race track and city.”
Pruszinske said a vision for funding capital improvements would be a partnership between the city, race track operators and potential third-party funding sources such as the Minnesota Department of Iron Range Resources and Rehabilitation, Minnesota Department of Employment and Economic Development, or private partners.
A formal agreement on rent and assurances between the city and XR Events will be signed and presented to the city council Jan. 8 or Jan. 15, Arola said.
The agreement would be a five-year contract, Arola said.
“We were looking to partner with somebody for a minimum of five years,” Pruszinske said. “The first year could be a year of learning for everybody. We will sign an agreement with terms and conditions at a future meeting.”
Pruszinske said the selection process was robust and included analysis of the ability of each group to operate the track, long-term vision for the venue and the financial ability to run the facility through 2025.
Before awarding management, the city also spoke with racers, sanctioning body WISSOTA and talked with sponsors and others, Pruszinske said.
Hibbing Mayor Pete Hyduke asked Arola where a strategic plan for the race track currently stands.
Arola said with construction of the city’s new public safety building and a recycling center near the race track, a strategic plan for the race track hasn’t yet been put on paper.
Management of the race track has for several months been up in the air.
The city, owners of the facility, recently issued a request for qualifications (RFQ) for a venue manager.
The RFQ includes general management of the race track, scheduling and promotion of events, marketing the venue, ticketing services, and food/beverage service.
The request came after the Iron Range Racing Association failed in 2024 to make any rent payments to the city.
Rent was $12,000 for the year, according to Pruszinske.
Rent payments were to be deposited into a designated city fund to be reinvested in the race track, Pruszinske said.
A resolution to the past-due rent remains to be determined, Pruszinske said.
The Iron Range Racing Association had since the mid-1970s managed the race track.
However, in November, Iron Range Racing Association officials said the track was $64,000 in debt, including $23,000 in bills and $19,000 taxes.
The facility, which draws thousands of race fans to Hibbing throughout the summer, hosts dirt track racing on Saturday nights from late May through Labor Day weekend.
This fall, the city had the race track’s north grandstand torn down due to safety concerns.