BALTIMORE − It's official: the Baltimore Grand Prix is on next year in Maryland.

Baltimore Racing Development officially announced Wednesday that the Baltimore Grand Prix will be part of the IZOD IndyCar Series for at least five years under contracts with the Indy Racing League and the city.

The race will be held on a 2.4-mile temporary street circuit around the city's Inner Harbor area downtown.

“This three-day festival of speed will not just include car racing, but will feature family friendly activities, offer great entertainment and much, much more,'' said Jay Davidson, CEO of the Baltimore Grand Prix and Baltimore Racing Development.

The race will be the Indianapolis-based league's only event in the mid-Atlantic region.

The announcement was made after a Baltimore City Council resolution and a vote by the Maryland Stadium Authority to formally support the race in Baltimore.

Indy Racing League commercial division president Terry Angstadt said Baltimore was chosen because the city is located in the mid-Atlantic region, and he noted the Inner Harbor will provide a spectacular setting for the race.

Organizers are planning a variety of activities to go along with the contest, including go-karting, beer gardens, extreme sports demonstrations and professional beach volleyball. The event is scheduled for Aug. 5-7, 2011.

The racetrack will be built around the streets of downtown Baltimore, including sections by Oriole Park at Camden Yards.

City officials estimate it will draw 100,000 spectators and generate nearly $50 million in annual economic impact.

The city approved using $7.75 million in state and federal grants to make necessary road improvements before the inaugural race.

Baltimore Racing Development LLC was formed in 2008 with the intention to bring a grand prix street race to Baltimore in 2011.