Unlike the previous race that was held in downtown Denver in 1990 and 1991 before going bankrupt, the Grand Prix of Denver will be privately funded.

Except for the customary traffic, police and fire services provided for any major sporting event, the city's only expenditure will be repairing Auraria Parkway to bring the street up to city code.

The temporary, 1.65-mile circuit will meander around the Pepsi Center.

The agreement is for seven years with a five-year option.

The event is being backed by a partnership including Championship Auto Racing Teams Inc.; Dover Downs Entertainment, which stages the annual Long Beach Grand Prix in California; sports mogul George Gillett; and Kroenke Sports, owner of the Colorado Avalanche, Denver Nuggets and Pepsi Center.

Next year's inaugural event will be held on either Labor Day weekend, Sept. 1-2, or the previous weekend, Aug. 25-26.

"The decision will be made by CART very shortly as to which of those two weekends it will be," said Christopher Pook, founder of the Long Beach Grand Prix. "We can't wait to be back here."

The three-day event weekend is expected to attract more than 100,000 fans in its first year.

A similar race in Vancouver earlier this year generated a $42 million economic benefit, said CART chairman Joseph Heitzler.

"We feel it will be a great economic generator for the city at a time when we need it," said Wayne Cauthen, chief of staff to Denver Mayor Wellington Webb.

Gillett, the Colorado businessman who owns the NHL's Montreal Canadiens, will serve as race chairman.