Just heard on the radio this morning that the pilots are worried that the grandstand/lights/etc. would be distracting during landings.[/b]
Anyone that's landed at a major city airport (Nashville, New Orleans, Providence, Logan, etc) at night knows that it's not a unique scenario. Besides, how many night lights are there going to be at a club racing facility?

And, it's a non-issue during daylight hours.

The FAA's (and AOPA's) major issue with it are in regards to encroachment. This country is losing an average of a small airport per week to residential and commercial encroachment. The FAA/AOPA want to make sure this is compatible use, and that it's not "the camel's nose under the tent" of future complaints and closure. the knee-jerk reaction from the pilot community - a reaction learned from years of encroachment - is "NO!" Disagree? Shall I mention Riverside and Ontario Motor Speedway, as two examples?

However, it is also understood that any thing that can created a barrier to incompatible encroachment is a good thing. Pilot's LOVE to have warehouses, commercial, railrods, highways, and factories nearby, as no one wants to build houses there...

We'll see how it goes.

http://www.aopa.org/whatsnew/region/2006/061130nj.html