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2005 - Harness Tracks of America, Inc.

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HARNESS TRACKS OF AMERICAExecutive NewsletterA daily fax and e-mail report on racing and gaming developments in North <strong>America</strong> and beyondStanley F. Bergstein, EditorQUEBEC PRIVATIZES TRACKSThe long-expected hammer fell yesterday in Quebec,where the Minister <strong>of</strong> Finance, Michal Audet,announced the transfer <strong>of</strong> management <strong>of</strong> theprovince’s four racetracks to private ownership.Winner in the competition is AttractionsHippiques Quebec, owned by Senator PaulMassicotte, currently attending the World TradeOrganization summit meeting in Hong Kong.Under the transfer, $100 million will be spent onrelocating Hippodrome de Montreal from itspresent in-city location to the northern suburbanring surrounding Montreal. Purses will receive$153 million over five years, raising them from$17 million to $25 million in the first year <strong>of</strong> theagreement, and increasing them each year afterthat to $35 million in the fifth year. Another $5million a year will be allocated to promotion andmarketing <strong>of</strong> the racing industry in the province.No mention <strong>of</strong> the fate <strong>of</strong> SONACC, which hasrun racing in the province, was made, butSONACC’s chairman, Gilles Dubreuil, a member<strong>of</strong> the independent committee that workedout the transition plan, said, “Thanks to today’sdecision, the entire horse racing industry, whichemploys 3,000 people in Quebec’s regions, willbenefit from the injection <strong>of</strong> these new investments.”The Minister <strong>of</strong> Finance added that theagreement met the government’s objective <strong>of</strong>doing everything possible to secure the long-termviability <strong>of</strong> the racing industry in Quebec, and theinfusion <strong>of</strong> purse money could signal a new erafor harness racing in the province. The minister,Michal Audet, will determine the role <strong>of</strong>SONACC in the reorganization. Massicotte, amember <strong>of</strong> the Liberal Party <strong>of</strong> Canada, is in additionto his senatorial duties the president andCEO <strong>of</strong> Alexis Nihon Real Estate InvestmentTrust and a board member <strong>of</strong> a number <strong>of</strong> civicgroups in the Montreal area. An accountant,he was lead director <strong>of</strong> the Board <strong>of</strong>Directors <strong>of</strong> the Bank <strong>of</strong> Canada.December 15, <strong>2005</strong>He also has been a major real estate developer inMontreal. A rival bidder for the tracks <strong>of</strong> Quebec,Remstar corporation, filed for the tracks <strong>of</strong>Quebec, Remstar corporation, filed for a temporaryinjunction blocking the government’s announcement,but a Quebec Superior Court judgedenied that request. Andre Marier, a former president<strong>of</strong> Blue Bonnets, the predecessor <strong>of</strong> Hippodromede Montreal, is associated with the Remstargroup.DISSENT REARS ITS UGLY HEADMore troubles all over the map:In Massachusetts, Raynham/Taunton dog trackowner George Carney stormed out <strong>of</strong> the StateHouse summit meeting with other track owners, justweeks before a looming legislative deadline thatthreatens Massachusetts racing. Carney wantsexpanded simulcasting at his Brockton Fair. Thethree other track owners in the state want a rollover <strong>of</strong> the current law. Plainridge president andHTA director Gary Piontkowski said <strong>of</strong> Carney’scarnage, “What you have here is a singleperson...stopping a billion dollar industry.”In Illinois, the Illinois <strong>Harness</strong> Horsemen’s Associationand Balmoral and Maywood Park managementhave been meeting on contract negotiations,but despite exchange <strong>of</strong> various proposals an impasseis reported and no compromise has beenreached.In Utica, New York, a federal bankruptcy judge hasscheduled final hearings tomorrow morning at 9 a.m.to determine whether Jeff Gural and his NevadaGold backers <strong>of</strong> Vernon Downs Acquisition, or EricSpector’s Oneida Entertainment and his PlainfieldAsset Management <strong>of</strong> Connecticut, get VernonDowns. Mid-State Raceway, the track’s parent,paid $107,000 in county taxes today, forestallingpossible foreclosure proceedings.

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