IndyCar News: IndyCar race costing town of Markham $12 million
The City of Markham has officially green-lit a multi-year funding partnership to bring the thrill of IndyCar racing to its streets, with capital costs already surpassing $12 million. This move marks a significant shift for the Ontario Honda Dealers Indy, relocating from its long-time home in Toronto to a brand-new temporary street circuit in Markham Centre.
–by Mark Cipolloni–
As preparations accelerate, the city is betting big on economic boosts, tourism surges, and long-term motorsport legacy—though not without some local pushback.
A New Chapter for Canadian IndyCar Racing
For nearly four decades, the Honda Indy has been a staple of Toronto’s summer calendar, roaring through Exhibition Place since 1986. But with the 2026 FIFA World Cup commandeering the venue for international soccer, organizers Green Savoree Toronto ULC, alongside IndyCar and the City of Markham, announced a multi-year relocation deal back in September 2025. The agreement spans at least five years, with options for renewal, positioning Markham as the new epicenter for North America’s premier open-wheel series in Canada.
Mayor Frank Scarpitti hailed the partnership as a “major milestone,” emphasizing Markham’s readiness to host a “world-class, three-day auto racing event.” The inaugural Ontario Honda Dealers Indy at Markham is set for August 14-16, 2026—a strategic shift from the traditional July slot to heighten championship drama as drivers battle for points late in the season.
The 2.19-mile, 12-turn circuit weaves through Markham’s downtown core, incorporating key landmarks like the Markham Pan Am Centre and York University Markham Campus. Designed for speeds topping 180 mph, the layout features a unique double pit lane, allowing fans an up-close view of the high-stakes action—something Mayor Scarpitti described as a “real draw.”
Funding the Fast Lane: Breaking Down the Costs
On January 27, 2026, Markham Council endorsed a funding plan with Destination Markham Corporation (DMC), allocating $3.4 million from DMC’s accumulated surplus. This is supplemented by revenue from a Municipal Accommodation Tax (MAT) hike from 4% to 6%, effective April 1, 2026—expected to generate funds through increased hotel stays without touching property taxes. Scarpitti stressed, “No property tax funds are being used for capital construction of the temporary street circuit.”
Capital expenditures have already ballooned beyond $12 million, covering one-time infrastructure upgrades essential for IndyCar’s stringent standards. These include:
– Milling and repaving roadways for smooth, high-speed racing surfaces.
– Widening roadways behind the YMCA.
– Relocating light standards and modifying curbs and medians.
– Constructing the innovative double pit lane.
Much of this work is already complete, with additional resurfacing ongoing. Organizers are also seeking vendors to support the event, signaling that construction is in full swing.
Economic Pit Stops: Projected Benefits and Broader Impact
City officials project the event will draw 140,000 to 150,000 attendees, injecting around $50 million into the regional economy—including 19,000 hotel room nights. Accessibility is a key selling point: 71% of past attendees will have an easier commute to Markham compared to Toronto. Scarpitti noted the potential for spillover effects, saying, “You get one huge sporting event like this, you’re probably going to get another one!”
Penske Entertainment, IndyCar’s parent company, sees long-term potential, with hints of extending beyond the initial five years. Jeff Atkinson, president of the Ontario Honda Dealers Indy at Markham, echoed this optimism in the initial announcement: “We look forward to a long and successful partnership.”
For the Greater Toronto Area (GTA), the move could redistribute economic gains, though Toronto officials expressed surprise and hope to lure the race back post-World Cup. The Ontario government previously chipped in $1.5 million for the 2025 Toronto event, underscoring the race’s provincial significance.
Not All Engines Are Revving: Local Reactions and Challenges
While boosters celebrate the economic windfall, not everyone in Markham is on board. Some residents worry about traffic disruptions, noise pollution, and the use of public funds—even if sourced from tourism taxes. A CBC report highlighted mixed sentiments, with the mayor touting benefits but acknowledging the need to “continually review and improve” community impacts.
Financial risks remain: If attendance falls short, recovery through MAT revenues could take longer, as Scarpitti admitted. However, the city’s strategic reserves and tourism-focused funding model aim to mitigate this.
Looking Ahead: A Checkered Flag for Markham?
As construction hums along and tickets gear up for sale, Markham’s IndyCar venture represents a bold pivot for Canadian motorsports. With Chevrolet and Honda recently recommitting to the series through multi-year investments, the stage is set for high-stakes racing that could cement Markham’s place on the global stage. Whether this relocation becomes a decades-long tradition or a temporary detour remains to be seen—but for now, the city is all in, engines roaring.