UPDATE 2-International Speedway to sell NY land for $80 mln

* To sell 676 acres in Staten Island to KB Marine Holdings

* Deal to result in $110 mln-$115 mln in 2010 cash flow

* To use proceeds to bolster cash reserves, reduce debt (Recasts; Adds CFO comments)

By Abhishek Takle

BANGALORE, Nov 12 (Reuters) - Racetrack operator International Speedway Corp (ISCA.O) said it agreed to sell 676 acres (273.6 hectares) of land in Staten Island, New York, where it had earlier planned to build a racetrack, to KB Marine Holdings LLC for $80 million.

The proceeds from the sale will be used to bolster the company's cash reserves and to pay down debt, Chief Financial Officer Dan Houser told Reuters.

International Speedway, whose tracks include the home of the popular Daytona 500 NASCAR race, had to abandon plans to establish a New York beach-head following local opposition, and has been looking to sell the land for a little over two years now.

"Like a lot of companies right now, we are keeping probably 10-12 percent of our assets in cash and we will be using (the rest) to pay down debt," Houser said.

The CFO also said some of the sale proceeds could go toward a casino that the company is planning to build, with partner Penn National Gaming Inc (PENN.O), at its Kansas Speedway facility in Kansas City.

"But for the time being, we will use it to pay down debt on our revolving credit facility, most likely, and to keep in cash reserve," he said.

Total net proceeds from the sale, including a tax benefit of about $39 million to $42 million, will provide incremental cash flow of about $110 million to $115 million in 2010, ISC said in a statement.

The transaction is scheduled to close no later than Feb. 25, 2010, the company said.

Shares of the Daytona Beach, Florida-based company closed at $27.12 Thursday on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Unnikrishnan Nair)