Justin Schneider, Herald Bulletin
justin.schneider@heraldbulletin.com
INDIANAPOLIS - The prospect of slot machine gaming has placed high expectations on Hoosier Park.
The race track's ownership is making moves to fulfill those expectations.
On Friday, the Indiana Horse Racing Commission approved a request by Centaur Inc. to acquire 19 acres adjacent to Hoosier Park for additions and improvements.
"Since the passage of House Bill 1835, we need additional land to build a new facility," said Centaur Attorney Bill Hagemier. "This is 19 acres adjacent to and north of the current site. Given the press of time, we would urge this commission to approve this."
In April, the Indiana General Assembly approved a bill bringing slot machines to Indiana's two pari-mutuel horse racing tracks: Hoosier Park in Anderson and Indiana Downs in Shelbyville. The bill requires both tracks to invest $100 million in their facilities to ensure the success of the venture.
According to documents provided by Centaur, the company will pay $1 million for the 19.1-acre site belonging to Virgil Cook, a familiar figure to those who know Hoosier Park.
"Mr. Cook has been a partner in Hoosier Park since the beginning," Hagemier said. "He donated the land to the city of Anderson for lease by Hoosier Park."
According to documents provided by Centaur, the closing of the sale is expected no later than July 31. At that time, Centaur will pay $50,000 in "earnest money" to Cook and begin an investigative period, which will allow Centaur to terminate the sale within 45 days.
Last month, the commission approved a request by Indiana Downs to purchase adjacent land for new stables.
"It is anticipated that, subject to commission approval of the purchase, the additional land will be used for expansion purposes," read documentation provided by Centaur. "To-wit: creation of additional parking areas and construction of new barn(s)."
Hoosier Park President Rick Moore said any renovations were still in an exploratory phase and it remained unclear how the new real estate would best service the facility.
"We've gone through 10 to 15 different scenarios trying to find the best fit," Moore said. "We may build new stables, we may expand the stables. But with the addition of slot machines, parking will be our biggest need."
Hagemier reminded the commission that any alterations to Hoosier Park must first meet with their approval.
Also on Friday, the commission approved the issue and sale of 45,903 shares of Centaur stock, valued at around $740,874.
According to documents provided by the commission, the shares will be issued "in order to raise equity for (Centaur's) projects in the state of Pennsylvania and elsewhere, and to provide funds for general administrative purposes."
New shareholders Craig Huse and James Wurstler will each purchase 17,655 shares, while existing shareholder Peter Korellis will be offered 7,062 shares and David Randall Blank 3,531. In addition, shareholder Michael S. Leckner has asked for permission to transfer 5,296 of his 10,593 shares to Blank.
Commissioner Doug Grimes called for a closer relationship between the Indiana Horse Racing Commission and the Indiana Gaming Commission in such matters.
"I have no problem with what's being suggested," Grimes said. "In this new era in which we operate, I raise the question of whether we should investigate with the gaming commission the entry of individuals into the industry.
"It's just a question I have. The interests of the horse racing industry have merged with the interests of the gaming commission, and I wonder whether or not there needs to be some collaboration."
Hagemier voiced his opinion that the two agencies are already working closely and clarified that the shares were sold at the pre-legislation price of $16.14 per share.
According to a shareholder summary provided by Centaur, the company has issued more than 4.6 million shares of stock worth over $74 million. The completion of pending sales will push the number of shares to more than 5.3 million, with a combined value of around $86.5 million.