CrazyCanuck
October 22nd, 2005, 06:52 PM
http://www.thestar.com/images/thestar/img/051022_magna_complex_250.jpg
Courtesy of Toronto Star
Magna's $1 billion racetrack
Florida project includes sports, entertainment, gambling
U.S. developer signs on for the residential-commercial phase
TONY VAN ALPHEN
BUSINESS REPORTER
Frank Stronach's vision to revolutionize the horse-racing industry took another step toward reality yesterday.
Aurora-based Magna Entertainment Corp., which Stronach indirectly controls, announced a joint venture with Forest City Enterprises to develop the critical second phase of the racing and gambling company's $1 billion (U.S.) Gulfstream Park project in Florida.
The Forest City venture, which will cost $350 million, entails construction of about 250 high-end condominiums and development of 400,000 square feet of retail shops, restaurants, entertainment venues and offices on land adjacent to the existing racetrack just north of Miami. There could be further expansions of the 22-hectare site, which Forest City calls "the village of Gulfstream Park."
"This is a state-of-the-art lifestyle, retail, entertainment opportunity for us," said Will Voegele, Forest City's regional director of development. "What is exciting is the integration and synergies of these retail and entertainment uses."
Cleveland-based Forest City, a leading U.S. real estate company, owns, develops and manages properties that generate $1.04 billion annually in revenues.
The Gulfstream project is Stronach's and MEC's $1 billion bet on turning the signature track into an around-the-clock entertainment, wagering and shopping mecca.
Stronach, who built Magna International Inc. into the world's fourth-largest auto-parts maker before embarking on his horse-racing vision, said he believes Gulfstream Park will be "one of the greatest destination locations" on the continent.
If it works, Aurora-based MEC plans to use Gulfstream as a prototype for other major tracks it owns across the U.S.
MEC is currently working on a $170 million overhaul of Gulfstream's grandstand, clubhouse, barns and track so it can reopen in early January after an eight-month shutdown. The second phase with Forest City should open in the fall of 2007.
MEC also wants to build a 500-room hotel and casino that will cost about $400 million in a third phase of the project.
MEC vice-chairman Dennis Mills said the company estimates final project spending will reach about $1 billion.
Mills said industry players have called Stronach's vision "crazy" in recent years and wondered if he would ever rebuild any track.
"It has taken some time but it is going to happen."
MEC is contributing the land to the venture while Forest City will secure financing, develop the land and manage it.
Stephen McCasey, director of architecture and development for MEC parent MI Developments, said the company is simply reinventing the sport of horse racing so it is more relevant to today's marketplace.
"We're not doing anything different than anyone else in the sports industry," he said. "We're bringing it into a new era. It started with the NBA (National Basketball Association) when they put something in between whistles."
Most horse racetracks operate from 11 a.m. to 7 p.m. but MEC wants to stretch that to 18 hours daily through numerous other activities ranging from betting on simulcast races, dining, shopping and entertainment such as live shows and concerts.
"There's not a significant inch that we won't be using," McCasey said.
MEC is already lobbying to change state laws to allow night horse racing at Gulfstream. It expects approval soon to install slot machines at the track.
The current overhaul involves building a smaller grandstand with seating for about 1,100, 20 corporate skyboxes, an 800-seat entertainment and sports theatre with a huge screen and Las Vegas revue stage, betting desks for individuals, "horse wizard" machines to make wagering easier, restaurants and a poker room.
The track will be able to handle more than 12,000 people at one time but MEC says it could easily increase that with temporary seating to accommodate traffic for a special race day.
Courtesy of Toronto Star
Magna's $1 billion racetrack
Florida project includes sports, entertainment, gambling
U.S. developer signs on for the residential-commercial phase
TONY VAN ALPHEN
BUSINESS REPORTER
Frank Stronach's vision to revolutionize the horse-racing industry took another step toward reality yesterday.
Aurora-based Magna Entertainment Corp., which Stronach indirectly controls, announced a joint venture with Forest City Enterprises to develop the critical second phase of the racing and gambling company's $1 billion (U.S.) Gulfstream Park project in Florida.
The Forest City venture, which will cost $350 million, entails construction of about 250 high-end condominiums and development of 400,000 square feet of retail shops, restaurants, entertainment venues and offices on land adjacent to the existing racetrack just north of Miami. There could be further expansions of the 22-hectare site, which Forest City calls "the village of Gulfstream Park."
"This is a state-of-the-art lifestyle, retail, entertainment opportunity for us," said Will Voegele, Forest City's regional director of development. "What is exciting is the integration and synergies of these retail and entertainment uses."
Cleveland-based Forest City, a leading U.S. real estate company, owns, develops and manages properties that generate $1.04 billion annually in revenues.
The Gulfstream project is Stronach's and MEC's $1 billion bet on turning the signature track into an around-the-clock entertainment, wagering and shopping mecca.
Stronach, who built Magna International Inc. into the world's fourth-largest auto-parts maker before embarking on his horse-racing vision, said he believes Gulfstream Park will be "one of the greatest destination locations" on the continent.
If it works, Aurora-based MEC plans to use Gulfstream as a prototype for other major tracks it owns across the U.S.
MEC is currently working on a $170 million overhaul of Gulfstream's grandstand, clubhouse, barns and track so it can reopen in early January after an eight-month shutdown. The second phase with Forest City should open in the fall of 2007.
MEC also wants to build a 500-room hotel and casino that will cost about $400 million in a third phase of the project.
MEC vice-chairman Dennis Mills said the company estimates final project spending will reach about $1 billion.
Mills said industry players have called Stronach's vision "crazy" in recent years and wondered if he would ever rebuild any track.
"It has taken some time but it is going to happen."
MEC is contributing the land to the venture while Forest City will secure financing, develop the land and manage it.
Stephen McCasey, director of architecture and development for MEC parent MI Developments, said the company is simply reinventing the sport of horse racing so it is more relevant to today's marketplace.
"We're not doing anything different than anyone else in the sports industry," he said. "We're bringing it into a new era. It started with the NBA (National Basketball Association) when they put something in between whistles."
Most horse racetracks operate from 11 a.m. to 7 p.m. but MEC wants to stretch that to 18 hours daily through numerous other activities ranging from betting on simulcast races, dining, shopping and entertainment such as live shows and concerts.
"There's not a significant inch that we won't be using," McCasey said.
MEC is already lobbying to change state laws to allow night horse racing at Gulfstream. It expects approval soon to install slot machines at the track.
The current overhaul involves building a smaller grandstand with seating for about 1,100, 20 corporate skyboxes, an 800-seat entertainment and sports theatre with a huge screen and Las Vegas revue stage, betting desks for individuals, "horse wizard" machines to make wagering easier, restaurants and a poker room.
The track will be able to handle more than 12,000 people at one time but MEC says it could easily increase that with temporary seating to accommodate traffic for a special race day.