I do not believe that KK's comments are merely a public 'threat' to Long Beach. The event by definition is a public event - if those spectators, local commercial sponsors, representatives of the tourist industry who are involved are concerned about losing the Champ Car event then their opinions and comments would be valued and important in the decision-making process.
Perhaps KK is trying to spark a more public debate than would occur if the chosen route was closed doors negotiations where either side could effectively 'promise' whatever they want to secure the deal.
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