Sooner than had been planned, Champ Car World Series and the San Jose Grand Prix confirmed that there would be no more San Jose Grand Prix Champ Car race, and that Champ Car would return to Mazda Raceway Laguna Seca, where it last raced in 2004.

The Monterey Herald ran the story Tuesday morning, saying the dates for the return to the famed 2.238 mile elevated road course would be 16-18 May 2008, to run with the Grand American Rolex Series. Champ Car evidently isn't concerned about competing with the May activities surrounding the Indianapolis 500, run by open wheel rival Indy Racing League.

DALE JANTZEN, president of the San Jose Grand Prix, said upcoming construction in the downtown area in the location occupied by the main/premium SJGP grandstands ($150 per seat) on Almaden Boulevard prevented the race from continuing.

Mayor CHUCK REED, elected this year, said he was not supportive of continuing to pay $4 million, the fee authorised in January 2006 by the San Jose City Council for the 2006 and 2007 races. He said he was willing to pay $600,000, which was to be the fee going forward.

There had been estimates of a $70 million economic impact to the local economy over the three-year run of the race on the 1.5-mile downtown street course. A spokesman for the Marriott Hotel, in the centre of the course, said it was a boom to the local hotels. The Marriott was sold out during a 'characteristically slow time' and now other ways would have to be found to fill the rooms. Other downtown businesses closed or had slow business. The race had yet to break even.

After the fact, the SJGP released 2007 attendance figures of 81,538 for the three days, a drop from 102,097 in 2006. Attendance has dropped each year. The 2005 attendance was reported at 130,000.

"We're pleased that Champ Car will be able to maintain a strong event in Northern California," Champ Car president/CEO STEVE JOHNSON said, "While it's always tough to leave one city for another, it makes sense strategically for us and works for San Jose given the ongoing development of their downtown."

Champ Car, formerly known as CART, ran for 22 years at Laguna Seca. This year Champ Car's Spring Training drew 3000 fans for four days of Champ Car and Atlantics testing. The world-renown road course is celebrating its 50th Anniversary season at what used to be the US Army's Fort Ord.

"While we look forward to announcing our entire 2008 schedule soon, we wanted to share this exciting news with our fans as soon as possible," GILL CAMPBELL, the circuit's CEO/general manager said.

The loss of the SJGP street course is the second street course loss this summer for Champ Car. Last month, the inaugural Phoenix street race, slated to be the season's finale in December, was cancelled due to lack of corporate and title sponsorship. Champ Car also postponed its inaugural Chinese race, scheduled for late October. This year's SJGP was the penultimate race in the United States, and the two remaining races are on foreign soil, at Surfers' Paradise in Australia on 21 October and in Mexico City on 11 November.