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.
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.
Employees at Santa Anita Park fear bankruptcy of its parent company Magna Entertainment Corp (MEC). Chairman Frank Stronach said the horsemen would not have to worry about any of their monies. Paymaster accounts total $11 million at Santa Anita Park. The accounts contain money earmarked for winning owners, who must pay a percentage of those earnings to jockeys and trainers. Magna Entertainment Corp. has lost $500 million in the past 5 years.
Magna Entertainment Corp. (MEC), owner of Santa Anita Park, has filed for Chapter 11 bankruptcy protection. Santa Anita Park may be sold to pay off Magna's debts. Frank Stronach paid $126 million for Santa Anita Park in 1996. The track has three potential buyers, including a group from Asia.
Although Magna Entertainment Corp. (MEC) , the parent company of Santa Anita Park race track, filed for bankruptcy protection yesterday, the fate of the track's paymaster accounts remains uncertain. The bankruptcy judge could declare the $15 million, which was placed in the joint trust account, an asset of MEC and order it frozen.
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.
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.
Santa Anita Park's parent company, Magna Entertainment Corp., faces the threat of bankruptcy amid mounting losses and a $600 million debt burden. The current racing season and status are unaffected. Frank Stronach of Magna Entertainment Corp. said he was looking for partners for the track.
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."
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.
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.
Magna Entertainment Corp. (MEC) attorney Greg Scoggins appeared before a special meeting of the California Horse Racing Board to explain the impact of its bankruptcy. Track employees and horsemen will likely be protected. Satellite wagering locations that receive 2% commission on bets placed through their facilities will likely have to line up in court with other creditors to collect what is owed to them.
Since he purchased Santa Anita Park in 1998, Frank Stronach has added five tracks to his stable and grouped them under a spin off company called Magna Entertainment Corp.
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.
Developer Rick Caruso said he is in the process of finalizing a new deal with Santa Anita Park's owners to build an outdoor mall at the race track's south parking lot. MI Developments (MID) (owner of track), voided a 2005 joint-venture development agreement with Caruso Affiliated in April 2010 for the proposed 825,000 square feet The Shops at Santa Anita, as part of MID's bankruptcy reorganization. MID and Caruso have been renegotiating since, and the development will be similar with some minor variations.
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.
Since Magna Entertainment Corp., the owner of Santa Anita Park, has filed for Chapter 11 bankruptcy. The race track will be auctioned off in September. That land is zoned for horse racing. Jason Kruckeberg, Arcadia's Development Services Director, said it will remain as a race track.
Developer Rick Caruso's $400 million open-air mall at the Santa Anita Park race track may be stiff competition for retailers at Westfield Shoppingtown. City leaders hope the two malls can coexist.
Westfield, Santa Anita Shoppingtown, and Santa Anita Fashion Park, are the three plaintiffs in a lawsuit against the City of Arcadia, the City Council, and developer Rick Caruso, aimed at stopping the new mall The Shops at Santa Anita. Plaintiffs allege the environmental study done was flawed. Assistant City Manager Don Penman said the study was the most thorough one he had ever seen.
Magna Entertainment Corp, owner of Santa Anita Park, is the plaintiff in a lawsuit filed against the State of California. The lawsuit alleges that the compacts between Governor Schwarzenegger and five Indian tribes is illegal.