2005 - Harness Tracks of America, Inc.

HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North America and beyondStanley F. Bergstein, EditorGURAL OFFERS VERNON PLANMajor New York City realtor and harness horseowner and breeder Jeff Gural has submitted a newVernon Downs plan to federal bankruptcy court.If accepted by the court and all creditors, Guralthinks Vernon could be back racing by late Julyor early August. Under the plan, Gural and TrackPower of Canada would invest some $15 millionto get the track out of bankruptcy. The pairwould purchase all of the stock of Mid-StateRaceway, Vernon’s parent, and eventually currentstockholders would be able to reinvest aslong as they are licensed by the New York StateRacing and Wagering Board. Gural explainedhis plan to the Oneida Dispatch, telling the paper,“It basically provides that we would be payingeveryone virtually 100 cents on the dollar tothe creditors; however, we would be stretchingout the existing mortgage on the property overeight years. Also, essentially we are buying allof the stock of Mid-State Raceway; however,we are allowing those stockholders who are interestedin buying back into the company anopportunity to acquire a portion of the stock ata very, very low discount rate, provided that theycan get a license.” For the plan to be acceptedby the bankruptcy court, it must be approved bya majority of the creditors, who have 30 days toreview the plan. Gural says he has some ideasabout Vernon, but “it’s premature to announceanything.” The track currently is open for training,and qualifying races are being held, but noracing has been conducted in the last year. Guralsays if his plan is accepted, it would provide immediatepayment to horsemen who received badpurse checks last July. He already has loanedthe track $1.2 million, and Mid-State acceptedGural’s offer of $8.5 million to reopen the track,but the bankruptcy court has not yet acceptedthat proposal. A court date of June 21now will be moved back to allow creditorstime to study the proposal.June 17, 2005SARATOGA MAY BUILD HOTELCity officials in Saratoga Springs, NY, announcedtoday that HTA member Saratoga Gaming andRaceway is considering building a 144-bed hoteland entertainment facility near the Jeffersonstreet entrance to the track property. Trackpresident Daniel Gerrity declined to commenton the report, but said, “We’re getting close toknowing what we’re going to do,” adding thathe already had met with architects and couldhave an announcement within two weeks.Saratoga Springs’ mayor Michael Lenz said ofthe project, “If it brings more people to our cityand our downtown, we want to see this happen.It tends to be a natural extension of the activitiesgoing on there, but we don’t want it to detractfrom our downtown.” The city has beenbriefed on the plans, which apparently also includean 18,000 square-feet arena with fixedseating. Gavin Landry, executive director ofthe Saratoga Convention and Tourism Bureau,called that idea “very logical,” adding that itcould be “very appealing, reaching out to nichesthat are not being served.” The racino, whichis drawing some 50,000 people a week to its1,324 VLT terminals, has created 300 jobs, andanother 200 are involved in the track operation.NOW THIS IS RACE CALLINGAs an old track announcer, the editor is qualifiedto pass judgment on good calls and quick thinking.Vic Stauffer, Hollywood Park’s racecaller, deservesfive stars. When an earthquake shook his boothand the press box yesterday, Stauffer, calling thesecond race, said, “We are in the midst of an earthquake.I want you to know that I love you all, andhorse racing was my first love.” He then added,“I better make this my greatest race call,” and hedid. As Dark Beauty and Pleasant Thunder battledto the wire, Stauffer said, “These two come tothe wire in the shaker. It’s a photo. I don’tknow who won, nor do I care.”