(09-11) 15:14 PDT SAN JOSE - San Jose will no longer host a grand prix car race, organizers said today, citing the problems of fitting the race course into a growing downtown.

The race, part of the Champ Car World Series, will return to the Mazda Raceway Laguna Seca in Monterey. The racetrack hosted the event for 22 years before it moved to San Jose in 2005.

Champ Car and San Jose Grand Prix organizers said development around the 1.5-mile course had limited their options for expanding the race and making more money.

Among the downtown projects under way is one that would have forced organizers to move the main grandstands off Almaden Boulevard, race officials said. A housing development on Balback Street would have affected the race's back straightaway, they said.

Money has also been an issue for the grand prix: San Jose has subsidized the race over the past two years, pouring $4 million into the event even as it was facing budget deficits of as much as $70 million.

Mayor Chuck Reed criticized his opponent in last year's mayoral race, Vice Mayor Cindy Chavez, for voting for the subsidy as a member of the City Council.

Reed's spokeswoman said today that he had always believed the race needed to bring as much money into San Jose's economy as it took out of city coffers.

Champ Car World Series officials said they were happy the event could be held on the 2.2-mile track at Laguna Seca.

"While it's always tough to leave one city for another, in this case, it makes sense strategically for us and works for San Jose," said Champ Car President and CEO Steve Johnson. "We enjoyed three great years in San Jose and certainly anticipate that the fans will head south to enjoy Champ Car racing."