Frank Stronach, chairman of MI Developments, the owner of Santa Anita Park, says he is optimistic his company can work out a new deal with developer Rick Caruso to build an outdoor mall at Santa Anita Park, even though he voided a 2005 joint-venture agreement with Caruso in April to build the Shops at Santa Anita mall in the race track's parking lot.
Santa Anita Park's ownership changed hands on April 30 after Frank Stronach's Magna Entertainment Corp. (MEC) transferred many of its assets to Stronach's MI Developments (MID) (one of MEC's creditors), as part of a bankruptcy restructuring plan. Last week MI Developments, a real estate operating company, canceled its 2005 agreement with Caruso Affiliated to develop to the proposed mall known as The Shops at Santa Anita, but this week MI Developments hopes to work out a deal with developer Rick Caruso to build an upscale retail project in the track's parking lot.
Developer Rick Caruso and officials of Santa Anita Park met to discuss reviving The Shops at Santa Anita, a proposed upscale retail mall project. MI Developments (MID) had cancelled a 2005 contract with Caruso Affiliated to build the mall after bankruptcy restructuring at Santa Anita Park. Both parties hope to move forward with the mall.
Canadian billionaire Frank Stronach, who is about to become the sole owner of Santa Anita Park, said he hasn't ruled out talking to developer Rick Caruso about reviving a project to build an outdoor mall in the race track's parking lot. Last week Caruso announced that he is no longer pursuing a development deal with Santa Anita Park's outgoing owner, MI Developments, Inc. (MID), for the upscale Shops at Santa Anita. Stronach is the outgoing chairman of MID.
Developer Rick Caruso of Caruso Affiliated is no longer pursuing a deal with Santa Anita Park owners MI Developments to develop an outdoor mall in the race track's parking lot. The project was known as The Shops at Santa Anita. Caruso said, "We're not pursuing it, because of the (Magna Entertainment Corp.) bankruptcy...and everything else." Arcadia city councilman Mickey Segal said it's a loss of "a projected $2.5 million to $3 million of revenue (each year) to the city" in sales and property tax.
In a strongly worded letter to Canadian mogul Frank Stronach, Arcadia city officials urged Santa Anita Park's owner to work with developer Rick Caruso and finish the proposed upscale Shops at Santa Anita mall project that has been in the works for the last five years. Stronach's MI Developments (MID) voided its contract with Caruso following bankruptcy restructuring at Santa Anita Park. In a further flexing of city muscle, the letter stated that it "looks forward to working with the race track in future projects that require City approval."
Magna Entertainment Corp., owner of Santa Anita Park race track, which is in bankruptcy reorganization hearings, filed a plan that would cancel its 2005 agreement with Rick Caruso to develop the 830,000 square feet Shops at Santa Anita on the race track's south parking lot. Caruso filed an objection to the move in bankruptcy court, citing "substantial economic harm" to Santa Anita Associates, LLC, the legal entity that was going to develop the project. Santa Anita LLC has so far invested over $25 million to the project's development. Caruso is committed to developing the project in Arcadia. If the contract is indeed terminated between the parties, Magna would have to start from scratch with new plans, new environmental impact reports, and new hearings to propose another development.
Last year it seemed Santa Anita Park might be sold in a bankruptcy auction, but it appears owner Frank Stronach will keep an interest in the track. Under a deal arranged by Stronach's bankrupt Magna Entertainment Corp. (MEC) and its creditors in a Delaware bankruptcy court, ownership of the track would be transferred to MI Development, a real estate holding company controlled by Stronach. If a judge accepts the plan, Stronach would also retain ownership of Golden Gate Fields in the Bay Area, and Gulfstream Park in Florida. Also, it sets up developer Rick Caruso to proceed with building the Shops at Santa Anita mall that is proposed for the track's parking lot.
Frank Stronach, chairman of MI Developments Inc. (MID), the owner of Santa Anita Park, will reveal a plan for Santa Anita Park on Wednesday to horse owners and trainers and he plans to address the California Horse Racing Board (CHRB). He did not discuss details but his plan aims to revitalize the ailing horse racing industry.
MI Developments, the new owners of Santa Anita Park, defended canceling Oak Tree Racing Association's lease for fall racing, saying the contract did not account for the true economic cost of running the race track, according to Dennis Mills, vice chairman and chief executive officer of Canada-based MI Developments. On the other hand, Oak Tree's director and executive vice president Sherwood Chillingworth said the race track was getting the better deal, as Santa Anita Park got 75% of Oak Tree's profits. Chillingworth is talking about running Oak Tree at Hollywood Park or Del Mar.
Ron Charles, 61, who has been president of Santa Anita Park for 5 1/2 years, is resigning. His final day is today. General Manager George Haines will take over as interim president while MI Developments (MID) searches for a replacement.
The Oak Tree Racing Association lost its lease to operate its fall horse racing meet at Santa Anita Park. Oak Tree has operated a fall meet at the track since 1969. Due to bankruptcy restructuring, Frank Stronach's company MI Developments took control of Santa Anita Park from Stronach's Magna Entertainment Corp (MEC). MI Developments wants to negotiate a new lease agreement with Oak Tree for fall racing.
Arcadia officials will meet with Santa Anita Park's majority owner Frank Stronach, to talk about the mall project that fell through with Caruso Affiliated, and to see if Stronach still envisions a high end retail project to develop on the track parking lot.
Frank Stronach, chairman of MI Developments (MID), is requesting the California Horse Racing Board (CHRB) to allow additional racing days at Santa Anita Park and at his other track Golden Gate Fields. He wants the number of racing days to increase from 85 to 140 days per year, to run races when he thinks he'll get the most customers. In order for MID to maintain its license and run thoroughbred racing at Santa Anita Park and Golden Gate Fields, the CHRB has asked the company to submit a business plan. The plan has been a secret even to some of the company's board members. In the meantime, repairs are being made at Santa Anita Park in preparation for the fall Oak Tree meet (photo).
Santa Anita Park's owner MI Developments canceled a meeting with the Oak Tree Racing Association last week and said they could not meet the association's June 4 deadline to agree on terms for a new lease. Sherwood Chillingworth of Oak Tree Racing Association would prefer to stay at Santa Anita Park but has to consider Hollywood Park and Del Mar.
The California Horse Racing Board authorized Oak Tree Racing Association to have its traditional fall meet at another thoroughbred venue in Southern California since the association's use of Santa Anita Park is still uncertain. MI Developments, which is chaired by Frank Stronach, recently voided Oak Tree's contract after acquiring the race track from Stronach's Magna Entertainment Corp (MEC) through federal bankruptcy proceedings. Oak Tree's director Sherwood Chillingworth said, "If we can't make a deal with Santa Anita...we can take our dates and run them in Hollywood or Del Mar."
Dennis Mills, vice chairman and CEO of Canada-based MI Developments, which owns Santa Anita Park, said the company will be unveiling a new business plan. This new business plan has many horse racing industry people worried about the future.
Frank Stronach, chairman of MI Developments, is scheduled to address the California Horse Racing Board to address a number of issues, including a potential new racetrack surface for Santa Anita Park and the recent cancellation of its lease with the charitable Oak Tree Racing Association. Dennis Mills, MI Development's CEO and vice chairman has said Santa Anita Park might replace its synthetic track soon, which could jeopardize hosting Oak Tree's meet there.
Santa Anita Park will host the Oak Tree Racing Association's fall meet one last time. Oak Tree's five-week fall meet has been held at Santa Anita Park since 1969. Frank Stronach, chairman of MI Development (owner of Santa Anita Park), said he doesn't want to have a tenant (Oak Tree) in the long run and talked about deregulation of the horse racing industry.
Medical offices to be built adjacent to Arcadia Methodist Hospital. Developer Dick Hale will create a new 4 story, 72,000 square feet, state of the art medical office building. It is a joint venture between Hale Corporation and The Stronach Group, owner of Santa Anita Park Race Track. Groundbreaking slated for 2013, with space available for tenants in 2014.