So it looks like Brazilian GP is headed to Rio. I just saw this on Reddit, but it looks fairly detailed and informative so assuming its true.
EXCLUSIVE: See letter from F1 CEO confirming closed negotiation to have Brazilian GP in RJ
Head of the category contacted the governor of Rio to inform decision about the Brazilian race and 'collect' licenses from public agencies
Amidst the uncertainty about the future of the Brazilian Formula 1 GP, the category's CEO, Chase Carey, sent a letter to the acting governor of Rio de Janeiro, Cláudio Castro (PSC), in which he confirms that the F1 finalized negotiations to hold the Brazilian race in the capital of the state of Rio de Janeiro.
Motorsport.com obtained access to the document with exclusivity. In the letter, Carey tells Castro that the category reached a positive outcome in negotiations with the Rio Motorsports consortium. The CEO also highlights that he is waiting for the necessary licenses from Rio's authorities.
"Dear Governor Claudio Castro,
I hope this letter reaches you well and I hope that you and your colleagues are well as possible in these challenging and complicated times.
Thank you for your support in booking Formula 1 in Brazil. Brazil has a special role in the history of Formula 1 and we have many valuable fans in Brazil.
I am writing to update you that we have now finalized the agreements for a race with Rio Motorsports LLC, which will host, organize and promote Formula 1 events in Rio de Janeiro. These agreements are ready for execution and announcement by Formula 1 as soon as all necessary licenses are issued by the relevant authorities, such as INEA/CECA, in Rio de Janeiro, Brazil.
Please feel free to contact me at any time. We look forward to an exciting future in Brazil".
But what about the construction of the autodrome?
The letter is from September 14th and mentions the pending licenses for the beginning of the construction works of the race track in the Deodoro region. The project's environmental impact study still needs to be approved for the complex to 'come out of the paper'.
Motorsport.com questioned Rio Motorsports about the pending construction work, but representatives of the consortium told the report that they would not comment at this time.
Circuit in Rio
The race track is budgeted at around R$ 800 million - and seen by Rio's City Hall, the state government and President Jair Bolsonaro as an asset to unseat São Paulo's competition and take the F1 race back to the capital of Rio de Janeiro. The signing of the contract between the city hall and the Rio Motorsports consortium, responsible for the work, depends on the approval of the environmental impact study (EIA-Rima).
The Camboatá Forest, ceded by the Army in Deodoro, in the north zone, is considered the last place of Atlantic Forest of flat areas in the city and shelters more than 200 thousand trees, in an area equivalent to 120 soccer fields. Rio Motorsports intends to compensate the environmental impact caused by the construction of the track with a series of actions, such as the replanting of 700 thousand trees, water reuse and carbon neutralization policies.
Rio de Janeiro seeks to strip São Paulo as the headquarters of the F1 Brazil GP
Since before last year, the two cities have been competing to receive the Brazilian stage of F1 in the future. Although the capital of São Paulo already has a very popular and ready race track (Interlagos), São Paulo's 'candidacy' lacks the financial contribution that the cariocas say it has. São Paulo has the 'onus' of being one of the two F1 races, together with Monaco, which does not pay a fee for the category to host a race.
The promoters of the Interlagos stage want a renewal with the F1. However, they face the competition from Rio de Janeiro. Rio would have offered around US$ 65 million. São Paulo would have made a proposal of US$ 20 mns (R$ 109 mns). According to Estadão, the cariocas would be close to bank the Paulistas to have the Brazilian race of the maximum category of motorsport. However, Rio Motorsports has been a recent disaster in MotoGP.
President Bolsonaro wants F1 in Rio
The project to take the F1 to Rio has strong political support from the president. The president is from São Paulo, but he has made his political career in Rio and one of his sons, Flávio Bolsonaro, is a state senator. Another heir to Jair, Carlos Bolsonaro is a councilman in the capital. All of them have publicly defended the construction of the race track in Deodoro. The initiative also has a contract to receive MotoGP in 2022, but the work seems far from beginning.
In any case, the Secretariat of Sport of Rio de Janeiro approved, in November, the project to hold the race for ten years in the capital, authorizing funding of R$ 302 million in tax incentives for the Brazilian GP of F1 in 2021 and 2022.
It would be $ 151 million per event, but as the amount will start to be paid before, there will be no overflow of the limit of $ 138 million per year provided by the Law of Fiscal Responsibility (LRF). The value will be invested to pay part of the fee to Liberty Media for the realization of the event.
SOURCE:
Translated from Portuguese to English using DeepL