International Speedway Corp. said Thursday it has agreed to sell its 676-acre parcel of property in Staten Island, N.Y., to KB Marine Holdings for $80 million.
The agreement calls for the transaction to close by Feb. 25, 2010, although KB Marine can get a $5 million credit if it closes by Dec 31.
ISC received a $1 million initial payment.
International Speedway has been looking for a buyer interested in redeveloping the site for port-related and logistics activities, said Brian K. Wilson, an ISC vice president.
"KB Marine plans to do exactly that, which will benefit economic development and job creation in Staten Island, New York City and the region as a whole," Wilson said.
ISC said the deal is not expected to result in a material gain or loss. The company expects to book a cash tax gain of about $39 million to $42 million in fiscal 2010 as a result of the impairments previously taken to reduce the carrying value to the land's estimated fair value.
The company recognized impairments of approximately $85 million in its fiscal 2006 fourth quarter related to the company's decision to discontinue its speedway development efforts on Staten Island, and about $13 million in its fiscal 2009 third-quarter results to adjust the carrying value of its property at the time to fair market value.
Total net proceeds including the tax benefit will provide the company about $110 million to $115 million in incremental cash flow.
ISC owns and/or operates 13 of the nation's major auto racing tracks.
Shares fell 34 cents to close earlier at $27.12.