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, EditorMAGNA, GCGC IN THE NEWSMagna Entertainment and Great Canadian GamingCorporation were in the news yesterday. Firstthey jointly announced closing of Magna’s saleof Flamboro Downs to Great Canadian, withMagna getting $23.6 million in cash and assumptionof existing debt by Great Canadian. Magnaalso announced it had increased its capital budgetfor construction at Gulfstream Park to $171.5million (all numbers in U.S. dollars) much of whichwill go to clubhouse construction costs in the hugerebuilding project. Magna also is borrowing upto $13.5 million for the clubhouse constructionfrom BE&K, parent company of the general contractoron the Gulfstream project, and pledgingland owned by Magna in Ocala as security forthe loan. Magna also announced the retirementof Jim McAlpine, vice chairman of corporate development.McAlpine, former CEO at MagnaEntertainment, had been the company’s longestservingchief executive, serving in that capacityfor four years, as well as being a member of thecompany’s policy making executive committee.Magna said McAlpine will continue to make himselfavailable as a strategic advisor and consultant.On the GCGC front, its completely refurbishedFraser Downs operation was unveiled after$35 million and 22 months of construction.GCGC’s vice president of racing operations,Chuck Keeling, said “not one square inch” of thefacility -- which GCGC bought along withSandown Park on Vancouver Island for $42.5million Canadian last March -- hasn’t beentouched by a hammer or screwdriver, from thegrandstand to the far reaches of the parking lot.Included in the package are more than 400 slots,which will give Fraser a new lease on life. GreatCanadian president and COO Anthony Martin,enthused over both developments, called the acquisitionof Flamboro “an ideal propertyfor our continued expansion into centraland eastern Canada.”October 20, 2005OH NO! SHAWN SCOTT AGAINThe latest in the seemingly never-ending perambulationsof Shawn Scott takes place in Maine,where Scarborough Downs has sued the Las Vegas-VirginIslands promoter, saying he manipulatedvoters, state laws and horsemen to create a monopolyon slot machines in the state. The suit,according to Scarborough Downs owner SharonTerry, is an attempt to ensure that Scott “doesn’twalk away from this a rich man after doing whathe did.” We’re not sure Ms. Terry can preventthat, or may be a little late in doing so. Ms. Terry’ssuit says Scott, although professing to helpScarborough Downs secure slots, always intendedto block the track from getting them. A Scott attorneysaid the suit had no merit, and that neitherScott nor his Capital Seven company had doneanything wrong. A judge refused on Oct. 3 to freezean upcoming final payment to Scott by Penn NationalGaming, which bought Bangor Racewayfrom Scott for a reported $50 million after Scottgot slots legalized there.KEY VOTE AT NORTHLANDSMembers of the board of directors of HTA memberNorthlands Park are scheduled to make a decisionnext Wednesday on the fate of a $21 millionexpansion project. The decision -- called “historic”by Dr. David Reid, chairman of Horse RacingAlberta, involves expanding Northlands’ currentfive-eighths mile track to seven furlongs. Reidsays the expansion would make Northlands competitivein selling simulcast signals and promotingmajor races. Dr. Reid also said the new $80 millionracing facility near the Calgary airport still isscheduled to open in spring of 2007.ACTION OFFICERS: PLEASE!Four new HTA surveys, on revenues v. expenses,player rewards, handicapping tournaments andcomparative pricing, are in your hands.Please return ASAP.