The United Horseman of Alberta’s (UHA) hopes are back on track as the organization plans a scaled down version of its proposed racetrack, hotel and grandstand in Balzac.
On Aug. 23, the UHA came out from under creditor protection, which it first entered in September 2009 after racking up $95.5 million in debt.
Since then, UHA has eliminated 67 per cent of its debt by selling off land to CrossIron Mills developer Ivanhoe Cambridge. Today the debt sits at $32 million.
“We spent last year scaling down the vision and getting our finances back under control,” said Darcy Marler, president of the UHA. “We realize we may have been guilty of over promising in the past so we are not making any promises…but we are in the best financial spot we have been in in the past three years.”
The old plan included a large grandstand with bleacher seating, a five star hotel, concert hall and two racetracks with a projected cost of about $220 million.
The pared down version includes one track and no grandstand. The projected cost is $65 million.
“That is much more realistic,” said Marler. “Now we are looking for financing in three ways: partner with a gaming company, or a hotel group, or looking for equity investors and bank financing.”
The UHA still hold an Alberta Gaming and Lottery Commission license in an area where no other gaming facilities exist, which makes the possibility of a joint venture with a casino group likely, said Marler.
In fact, UHA is now in “serious” discussions with several casino and hotel groups, he added.
“We have this very large territory with a license, so that makes us appealing to gaming companies, so we have seen a lot of activity,” said Marler. “We have received three calls in the last week. There are lots of signs for increased optimism.”
The UHA also owns 112 acres of land, 75 of which are not required for racing operations and can be sold. That should cover the cost of the remaining debt, according to Marler.
A one-year option signed with Ivanhoe Cambridge gives UHA the chance to buy back the land from the developer at a cost of $30 million. The group has until Feb. 1, 2011 to get its financing in place.
“If we find our financing by Feb. 1, we will be ready to race spring of 2012,” said Marler. “If we don’t, the dream dies with it. It is either Feb. 1 or bust.”
According to Marler, the timing is good for the group as the needed infrastructure is in place and Stoney Trail, which he expects will bring Calgarians to the casino, is almost complete.
“We really see this area as being the convention spot for Calgary in the future,” said Marler. “Having the track there is going to be the catalyst for having this area explode. We are trying to use more common sense and be realistic and not get everyone’s hopes up, but we are fairly confident.”
Rocky View County Reeve Lois Habberfield is hopeful UHA will be able to realize their plan.
“It was always part of the bigger picture for the development of East Balzac,” said Habberfield. “It has a lot of positives to it.”
The development would have economic spin-offs, such as jobs at the hotel and casino, and niche markets for area farmers interested in stabling horses or growing high-grade hay to feed the race horses.
Habberfield said the track at the Stampede Grounds has been sorely missed since it was shut down in 2008.
“I haven’t met much opposition to it, people are more anxious about when the track is coming,” said Habberfield. “I certainly hope they can solve their financial needs.”
