Say goodbye to Hollywood
Say goodbye to Hollywood
Churchill Downs sells historic Hollywood Park to Bay Meadows Land Company
Ending months of speculation, Churchill Downs Inc. announced an agreement to sell Hollywood Park to Bay Meadows Land Company LLC.
Located in Inglewood, Calif., Hollywood Park was acquired by Churchill for $140 million in 1999, and the $260 million sale to the Northern California track operator should be completed in the next three months. Bay Meadows will take over the racetrack operations; the card room casino at the track will continue to be operated by Pinnacle Entertainment under a long-term lease. Churchill retains the right to reinvest in the property during the next eight years should the gaming landscape change in California.
The failure of Proposition 68 last year and the continued inability to obtain alternative gaming legislation in the state was a prime motivator in the sale, along with other problems currently faced by California's racing industry. Bay Meadows has committed to keeping the racetrack open for three years, during which time all the state's tracks will continue to lobby for gaming machines and other relief from competitive pressures and the skyrocketing costs that have led owners and trainers to exit the state.
"The transaction will put Hollywood Park in the hands of an owner that is already active in California racing with a strong interest in finding solutions to the many competitive challenges in that jurisdiction," said Tom Meeker, Churchill's president and CEO, in the announcement.
"We will work diligently with all segments of the horse racing industry, California's elected officials and racing enthusiasts to find long-term solutions to the economic challenges facing the horse racing business in California today," explained Bay Meadows president Terrence E. Fancher in the joint statement.
That said, he added that Bay Meadows will also explore options for development of the Hollywood property should there be no progress along those lines.
"We also will seek alternative uses for the current racetrack site, in collaboration with the City of Inglewood, in the event that our best efforts are unable to improve the underlying economics of the horse racing industry and to stem the tide of horses leaving the state," Fancher said.
The Bay Meadows site in San Mateo has also been the subject of development talk in recent years. That track was leased to Magna Entertainment until January 1 of this year, when owner Bay Meadows Land Company took over its operation. The company has continued to operate the racetrack while developing parts of the property. For example, an award-winning mixed-use development called Park Place was built on a 79-acre portion of the Bay Meadows site that previously encompassed a stable area and training track.
-Patricia A. McQueen
Churchill Downs sells historic Hollywood Park to Bay Meadows Land Company
Ending months of speculation, Churchill Downs Inc. announced an agreement to sell Hollywood Park to Bay Meadows Land Company LLC.
Located in Inglewood, Calif., Hollywood Park was acquired by Churchill for $140 million in 1999, and the $260 million sale to the Northern California track operator should be completed in the next three months. Bay Meadows will take over the racetrack operations; the card room casino at the track will continue to be operated by Pinnacle Entertainment under a long-term lease. Churchill retains the right to reinvest in the property during the next eight years should the gaming landscape change in California.
The failure of Proposition 68 last year and the continued inability to obtain alternative gaming legislation in the state was a prime motivator in the sale, along with other problems currently faced by California's racing industry. Bay Meadows has committed to keeping the racetrack open for three years, during which time all the state's tracks will continue to lobby for gaming machines and other relief from competitive pressures and the skyrocketing costs that have led owners and trainers to exit the state.
"The transaction will put Hollywood Park in the hands of an owner that is already active in California racing with a strong interest in finding solutions to the many competitive challenges in that jurisdiction," said Tom Meeker, Churchill's president and CEO, in the announcement.
"We will work diligently with all segments of the horse racing industry, California's elected officials and racing enthusiasts to find long-term solutions to the economic challenges facing the horse racing business in California today," explained Bay Meadows president Terrence E. Fancher in the joint statement.
That said, he added that Bay Meadows will also explore options for development of the Hollywood property should there be no progress along those lines.
"We also will seek alternative uses for the current racetrack site, in collaboration with the City of Inglewood, in the event that our best efforts are unable to improve the underlying economics of the horse racing industry and to stem the tide of horses leaving the state," Fancher said.
The Bay Meadows site in San Mateo has also been the subject of development talk in recent years. That track was leased to Magna Entertainment until January 1 of this year, when owner Bay Meadows Land Company took over its operation. The company has continued to operate the racetrack while developing parts of the property. For example, an award-winning mixed-use development called Park Place was built on a 79-acre portion of the Bay Meadows site that previously encompassed a stable area and training track.
-Patricia A. McQueen
