IndyCar News: Markham shelling out $12M to host IndyCar race

The City of Markham has taken a significant step forward in hosting its first major motorsport event by formalizing a funding partnership for the Ontario Honda Dealers Indy. On January 27, 2026, Markham council approved a multi-year agreement with Destination Markham Corporation (DMC) to finance the event, ensuring that capital costs exceeding $12 million are covered without dipping into property taxes.

–by Mark Cipolloni–

This move comes as preparations intensify for the race’s debut in Markham, following its relocation from Toronto’s Exhibition Place.

Background: The Shift from Toronto to Markham

The Ontario Honda Dealers Indy, a staple of the NTT IndyCar Series since 1986, has traditionally been held on the streets of downtown Toronto in mid-July. However, in September 2025, organizers Green Savoree Toronto ULC, along with the City of Markham and IndyCar, announced that the event would relocate to a new street circuit in Markham Centre starting in 2026. The decision was driven by a multi-year agreement aimed at revitalizing the event and bringing high-speed racing to York Region.

The new circuit, designed around downtown Markham, promises a fresh layout with unique features like a double pit lane for enhanced spectator viewing. Scheduled for August 14-16, 2026, the race has been shifted later in the IndyCar calendar to align with the championship’s climactic phase, potentially heightening the drama as drivers vie for points. Markham Mayor Frank Scarpitti highlighted this timing, noting, “You’re kind of getting into the championship round… Drivers will be jockeying for positioning. It’s going to be more exciting.”

Preliminary Markham circuit layout. Image supplied

The relocation has sparked a mix of excitement among racing enthusiasts and concerns from some local residents about traffic disruptions and noise. Nonetheless, city officials emphasize improved accessibility, with Scarpitti stating that 71% of attendees will have an easier commute to Markham compared to Toronto.

Funding Details and Infrastructure Investments

The approved funding plan draws from DMC’s accumulated surplus and increased tourism-related revenues. Specifically, $3.4 million will come from DMC reserves, supplemented by incremental income from raising the Municipal Accommodation Tax (MAT) from 4% to 6%, effective April 1, 2026. This tax, applied to hotel stays, is designed to promote tourism without burdening local taxpayers. As Scarpitti explained, “This legislation was passed by the province to allow municipalities to introduce essentially a hotel tax to promote their city,” adding that reserves are intended for reinvesting in infrastructure to attract visitors.

Capital expenditures have already surpassed $12 million, with ongoing work including road resurfacing to meet IndyCar standards, widening roadways behind the YMCA, relocating light standards, and modifying curbs and medians. The double pit lane is a standout feature, allowing fans a clearer view of pit stops. Scarpitti described it as a “real draw,” contrasting it with traditional single-lane setups where action is harder to see.

The agreement spans five years with renewal options, and Penske Entertainment officials have expressed long-term commitment, reportedly saying, “Your agreement is for five years, but we’re coming up here for decades.” Financial risks are mitigated by the MAT’s structure, which allows for gradual cost recovery. “If it’s a little lower than expected, it just means you take a little longer to put the money back,” Scarpitti noted.

Economic and Community Impact

Organizers project the three-day event will draw 140,000 to 150,000 attendees, generating approximately $50 million in regional economic activity and 19,000 hotel room nights. This influx is expected to boost local businesses, particularly in hospitality and retail. Beyond the immediate benefits, Scarpitti envisions the Indy as a catalyst for future events: “You get one huge sporting event like this, you’re probably going to get another one!”

Preparations are well underway, with calls for vendors and announcements of support series, entertainment, and amenities expected soon. Road closures and parking disruptions in Markham Centre are already in effect as construction accelerates.

Looking Ahead

As Markham gears up for its IndyCar debut, the funding formalization marks a pivotal moment in transforming the city into a motorsport hub. While challenges like resident backlash persist, the potential for economic growth and global visibility could redefine York Region’s role in international racing. With the 2026 season approaching, all eyes will be on Markham to see if this bold move pays off on and off the track.