By Perry Lefko
Fort Erie Racetrack, famous as the site of the Prince Of Wales S.–the middle leg of the Canadian Triple Crown–is up for sale, but it is not expected to impact the track's 2018 schedule of 40 race dates. In fact, the “for sale” sign has interested the Fort Erie Live Racing Consortium (FELRC), which leases the racetrack and may consider buying it.
“We have a lease and anybody that purchases the property has to accept the assignment of the renewable five-year lease,” said FELRC Chief Executive Officer/Secretary Jim Thibert, who is also General Manager of Fort Erie's Economic Development and Tourism Corporation. “They would have to give us certain notices, but for the most part we're not concerned by this. It opens doors for us. We once tried to buy this track.”
Current owner, Carl Paladino, a Buffalo businessman who purchased the entire 338-acre site in August, 2014 from Nordic Gaming for an undisclosed price, has put a price tag of $7.2 million for the 144-acre racing property, the clubhouse and the barn area.
Paladino bought the land with the intention of developing the property with a $280-million investment that would include a hotel, hoping to capitalize on the prospect of a motorsport track park being built by another company. Ground has not been broken on the track.
Thibert said Paladino is prepared to put the 144 acres that comprise the racing portion of the property up for purchase, which might make it financially appealing to the FELRC.
“We're looking at that now,” Thibert said. “The whole deal [previously] was you had to buy all 338 acres. We only need about 144 acres, which is the track and parking and things like that. Now it's become a manageable chunk.”
The recent announcement by the Liberal government to commit $105 million annually for 19 years to the Ontario horse racing industry as of 2019 is appealing to the FELRC, because the financial commitment provides some long-term stability, according to Thibert.
“Given that we pay out rent to this property and more so pay all the costs associated–what is called the Triple Net Lease–we can afford to run 40 days and we can afford to pay off a mortgage based on $7.2 million,” Thibert said. “That's why we are looking at options now that we will present to the FELRC Board of Directors and hopefully present to the government. What are the advantages? The advantages are huge. The (government commitment) is the biggest thing that has happened to racing in the last five to six years. This government has been trying to rebuild racing.
“I think the horse industry should look at this and say, 'wow.' Instead of taking our rent money and paying it to somebody else, suddenly we're building our own asset base, and with that, we can invest in the track and improve the horse facilities, the stall facilities and the fan facilities.”
Fort Erie has been operating on a modest budget since a decision was made by the province to remove slots from its premises in 2012, the first step as part of a move by the government to end the lucrative Slots At Racetrack Program. It annually netted the province $1.1 billion a year and gave the horsemen and racetracks $330 million a year. The province ended that agreement after an auditor deemed that the horse racing industry had become a subsidy. Instead of renegotiating the deal, the government scrapped it and it resulted in lost jobs and racetracks closing.
The venerable “Fort,” which is the only other plant in Ontario beside Woodbine that offers Thoroughbred racing, was once on death's door, but has been sustained by the FELRC in recent years.
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