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Arlington International going on the block

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Illinois

Long expected by racing industry observers and feared by horse owners, trainers and fans, Arlington International Racecourse’s status as a gem for the sport of kings is about to come to the finish line.

Churchill Downs Inc., owner of the storied Arlington Heights track where horses have raced since 1927, announced Tuesday it plans to put the 326 acres near Euclid Avenue and Wilke Road up for sale. Churchill will use Chicago-based real estate firm CBRE to market the “redevelopment opportunity,” officials announced in a Tuesday afternoon news release.

And after previously casting doubt on whether a 2021 race meet would be held, Churchill officials on Tuesday said they’re committed to running Arlington’s 68 live race dates, scheduled from April 30 to Sept. 25.

They said they don’t expect a sale to close before the end of the race meet, or that the sale process will affect Arlington’s racing operations this year.

* React from the Illinois Thoroughbred Horsemen’s Association…

Illinois thoroughbred owners and trainers appreciate the opportunity to race this year at Arlington Park, a world-class track, but are disappointed that Churchill Downs will renege on its longstanding promise to preserve and grow jobs in Illinois racing while also serving the best interests of Illinois taxpayers.

Churchill spent two decades lobbying Illinois lawmakers for the authority to develop a casino at Arlington. But since purchasing the majority stake in the nearby Rivers Casino, Churchill has all but abandoned any meaningful commitment to Illinois racing. Churchill abruptly reversed course, deep-sixed that Arlington development plan, and instead devoted itself to ensuring that Arlington could not become a gaming competitor to Rivers.

Churchill’s anticompetitive behavior was so brazen, in fact, that its CEO publicly dismissed the prospect that racing might continue at Arlington under another owner and insisted the property would “have a higher and better purpose for something else.” Even in its statement today, announcing its plan to sell the Arlington property, Churchill obviously is disingenuous when it claims that it will move the Arlington racing license to elsewhere in Illinois.

“The license is not Churchill’s to move,” said Mike Campbell, ITHA president. “Moreover, the notion that a seasoned gaming operator would relocate a racing license away from a state of the art, modern racing facility near the heart of the Chicago metropolitan region to some yet-to-be-determined location is absurd. Churchill is just trying to obfuscate from the fact that it cares only about maximizing profit and will gladly sacrifice the spirit of Illinois law and the livelihood of working Illinoisans to serve its greed.”

The Illinois gaming expansion law was intended to boost overnight purses and otherwise invigorate thoroughbred horse racing in this state for the purpose of creating jobs, sparking economic opportunity and diversifying the tax base for the state and local communities. Illinois owners and trainers are appalled by Churchill’s contempt for live racing and the working men and women, from backstretch workers to breeders, who have devoted themselves to Illinois racing and who depend on racing opportunities and overnight purses to support themselves and their families.

posted by Rich Miller
Wednesday, Feb 24, 21 @ 2:58 am

Comments

You have wonder if a flight from Chicago to the suburbs is fueling this opportunity/deal?

Comment by Gwen Wednesday, Feb 24, 21 @ 5:46 am
Attendance has been dropping for decades. Look at the size of the grandstands compared to who is physically there nowadays.

Before it closed Maywood wasn’t much different- huge stadium and people measured by the dozens.

And Sportsman’s before that. It’s becoming a bygone era.

Comment by jimbo Wednesday, Feb 24, 21 @ 6:39 am
= You have wonder if a flight from Chicago to the suburbs is fueling this opportunity/deal?=

I am not sure what you mean by this statement. Are you saying the migration of people from the city to the suburbs drove up the value of the property for new residential space and therefore Churchill Downs is looking to capitalize on that?

I think greed over casino profits and a decline in

Comment by John Lee Pettimore Wednesday, Feb 24, 21 @ 7:08 am
Oops, I meant to add a decline in interest in horse racing drove this decision.

Comment by John Lee Pettimore Wednesday, Feb 24, 21 @ 7:09 am
What’s going to happen to the city of people who live there, the people who take care of the horses and the grounds. I don’t think they make much money.
Where will they go? Will Arlington Heights build homes for them?

Comment by Da Big Bad Wolf Wednesday, Feb 24, 21 @ 7:42 am
Yes it’s going to be a really nice development like the housing they built for auto workers in Detroit when they were laid off in the 80s.

Comment by Sonny Wednesday, Feb 24, 21 @ 7:49 am
The Bears are crazy if they don’t buy it

Comment by DuPage Saint Wednesday, Feb 24, 21 @ 8:14 am
That location is directly across the street from the Rolling Meadows courthouse. With that across the street and a rail station on site, I have to think that a mixed use development would attract a decent amount of law firms, even it it just one of those shared spaces deals.

A real Loop office and then a space there to use a conference room or just to do things like revising jury instructions would a good deal for a lot of us.

Comment by Crash Wednesday, Feb 24, 21 @ 8:14 am
I haven’t known anyone who bet the ponies since I was a kid.

Comment by Flyin' Elvis'-Utah Chapter Wednesday, Feb 24, 21 @ 8:20 am
Churhill Downs Inc played the State Racing Board , Gaming Commission and the Horseracers for Suckers.
Unfortunately , blame also falls on the Goverment Officials, Politicians , and the Horsemen for buying the baloney and phony promises.
RIP AP

Comment by Red Ketcher Wednesday, Feb 24, 21 @ 8:41 am
The gaming board took a license away in the past. I think the gaming board should revisit their policies on taking a license away again. Absent that the General Assembly should take action. Arlington fought for years to get gaming at Arlington and then turned tail to protect another business interest. Sleep in the bed you made.

Comment by Nagidam Wednesday, Feb 24, 21 @ 8:42 am
Would like to see a development like the Glen in Glenview. Also Palatine, Rolling Meadows and Arlington Heights needs to share the new taxes.

Comment by Big Mike Wednesday, Feb 24, 21 @ 8:42 am
As long as Neil Bluhm got his we should all be happy and why not just let them move ve the license where they want they’ve been such honest and open brokers on gaming. sn/

Comment by Frank talks Wednesday, Feb 24, 21 @ 8:53 am
I always went to Arlington at least a few times a year and always had a great time. The place was one of the most beautiful race tracks in the country. The Arlington Million was a must event for thousands of Illinois residents every year that packed the track and brought in people from all over the world
While Illinois insiders got casino licenses, Arlington got rejected year after year.
It is certainly true that horse racing is declining in popularity, but Arlington employed a lot of people and our region is going to lose those jobs forever. Other states added some casino games and those tracks survived.
Trying to be objective in this, I think Illinois politics contributed more to the closing of Arlington than any other single cause.

Comment by Back to the Future Wednesday, Feb 24, 21 @ 8:59 am
This is about the decline of horse racing. This is about a real tough go of it for horse racing in Illinois as compared to other states. But it’s really about land values and the asset value of a business vs operating income.

The most valuable thing about Arlington is the land it sits on. The business is declining or all but gone - so sell out and pocket the best part of the portfolio.

I’m reminded of when WBBM-AM sold their tower site in 2018. The 42 acres that their AM stick sat on was worth $46 million. That’s probably more than the entire station is worth right now. So you had to sell, even if that means you can’t get 780 AM in downstate clear as a bell anymore.

Times change. For the owners of Arlington, it was time to cash out on the last winning bet slip they had.

Comment by Cool Papa Bell Wednesday, Feb 24, 21 @ 9:01 am
Maybe some people will go Duch on it

Comment by Ok Wednesday, Feb 24, 21 @ 9:02 am
So many memories at AP. As a kid, we would go on big weekends like the 4th or mothers day day - I would go right to Dave Feldman’s page in the sun-times for his racing coverage. Million day was huge - I can still see/hear Teleprompter win at 14-1 with Phil Georgeff calling him home in 85

Comment by Donnie Elgin Wednesday, Feb 24, 21 @ 9:07 am
@Cool Papa Bell

Arlington fought for years to get what they knew would save the track, gaming. They produced statistics across the country on how gaming saved the horse industry in other states. They finally got gaming at Arlington right at the time the parent company bought a casino nearby. The decision to sell Arlington has nothing to do with land prices and everything to do with competition. It’s a great soundbite to talk about highest and best use of the land but there is nothing honorable about what Arlington is doing.

Comment by Nagidam Wednesday, Feb 24, 21 @ 9:21 am
Can the state and the taxpayers stop paying for this nonsense? no one cares about horse racing and if they did, it’s not something the government should subsidize. That money would be better spent on people who are in need, or to help fulfill the contractual promises the State has made to its employees

Comment by Merica Wednesday, Feb 24, 21 @ 9:36 am
The sport is not declining, Illinois is. Horse racing continues to attract enormous crowds:

https://en.m.wikipedia.org/wiki/American_thoroughbred_racing_top_attended_events

The problem is IL doesn’t pay purse $$$ for talented thoroughbreds to race in IL.

Comment by Jockey Wednesday, Feb 24, 21 @ 9:41 am
Not sure where they would “move” the license to, if they even can move it (and the racing board says they can’t.) There are no population centers around the state that don’t already have a casino or are slated to get one soon. It would cost a pretty sum to build a money-losing track just open a money-making casino in it. Is it worth it?

Springfield has a track at the fairgrounds, maybe they want to take over that. But the racing board doesn’t need Churchill Downs Inc to give the fairground racing dates.

Comment by Tom S. Wednesday, Feb 24, 21 @ 9:43 am
The old Sheraton Hotel’s condos and apartments blocks from Arlington aren’t fully sold or leased after years on the market yet many condo and apartment units are being built next door. That can’t help the sale value of their 326 acres.

The gaming board should strip CD’s racing license and somehow a fair market sale of the property and a straight state gaming board transfer of the racing license to the horse owners group who tried to buy the track and racing license from CD last year should be made. Let that group the buy the land at fair market value. Take a look at Gulfstream Park handle and attendance if you think horse racing is dead. Maybe CD would then reconsider its position and simple seek tax breaks to stay with AP. If not, a new owner and casino at AP shouldn’t hurt their Des Plaines facility too much.

Comment by D Wednesday, Feb 24, 21 @ 9:49 am
===The problem is IL doesn’t pay purse $$$ for talented thoroughbreds===

Because we didn’t have racinos, which Arlington has demanded for years and years. And then they got racinos and poof they gone.

Comment by Rich Miller Wednesday, Feb 24, 21 @ 10:15 am
I haven’t been there for years, but will miss it.

Comment by Lincoln Lad Wednesday, Feb 24, 21 @ 10:18 am
Churchill is in the gambling business, not the horse racing business. The tracks have become a nostalgic cover, where they can be leveraged for other gambling. They finally went with Rivers as the better location, for a variety of reasons, including the state’s multi-year delays, and Chicago’s ineptness as a competitor.

Loved the place. Sorry to see it go, and the jobs associated with it around the state.

Comment by walker Wednesday, Feb 24, 21 @ 10:36 am
It was a pretty track, but pretty is as pretty does, as my grandmother used to say. Arlington & CDI did a lot of ugly stuff.
Illinois has 2 other thoroughbred tracks ready and willing to pick up the slack. Both Hawthorne and Fairmount have been honest in their dealings with the state, the IRB and most importantly, open and generous with the people who care for horses at their tracks. Both are locally owned and applied immediately for racino licenses once the bill was signed as all the tracks had promised to do. Neither receives the huge real estate tax credit from the state that Arlington alone has gotten for decades,nor the prime racing dates from the IRB that Arlington has hogged.
I hope these two little tracks thrive. It’s nice to see them get the opportunity.

Comment by northsider (the original) Wednesday, Feb 24, 21 @ 10:37 am
Very sad to see it go. I spent many Fridays there over the years. I am sure that the sharp increase in gambling facilities have affected the amount of people going to the track. I didn’t go there for the gambling. I enjoyed the experience of being at the track on a beautiful day. I was probably not in the majority I guess.

Comment by Tom More Wednesday, Feb 24, 21 @ 10:39 am
People can gamble all over IL now. They no longer have to go to the racetracks to gamble. New gambling laws has hurt Arlington International Racecourse the most.

Comment by M Wednesday, Feb 24, 21 @ 10:41 am
Now Hawthorne will become the new racino palace of the midwest and take over the prime summer dates. They must be smiling ear to ear.

Comment by DEE Wednesday, Feb 24, 21 @ 10:46 am
Now you get on your phone and bet on all sports. The demise of horse racing is similar to the demise of stock car racing (Santa Fe Speedway, Raceway Park). And yes, wagering was taking place there.

Comment by bogey golfer Wednesday, Feb 24, 21 @ 11:16 am
“People can gamble all over IL now.”

No disrespect intended. People can watch sports from their homes too, but they still spend lots of money to be there live. There is something different about watching events in person, and fans are willing to spend lots of money to do it.

Comment by Steve Polite Wednesday, Feb 24, 21 @ 11:30 am
@ Steve =There is something different about watching events in person, and fans are willing to spend lots of money to do it.=

Honest question - Do you think that remains in the post pandemic hangover of the next few years? And while Wrigley Field is packed - The “Rate” or Sox Park never is… So that only goes so far in some places or sports.

(Now maybe with a very exciting looking team the Sox would draw in normal times)

Comment by Cool Papa Bell Wednesday, Feb 24, 21 @ 11:37 am
Illinois thoroughbred and harness racing has been a circular firing squad between the state govt., track owners, horseman’s groups, and a lack of proper marketing which has all combined to destroy a significant industry. The primary beneficiary .. the casinos, which were happy to see a competitor die on the vine. Since Edgar, who was an equine enthusiast, governor after governor have shared responsibility as well. Particularly Quinn.

Comment by WillREz Wednesday, Feb 24, 21 @ 11:38 am
While the biggest events (Kentucky Derby, Breeders Cup) still attracked crowds pre-Covid, overall interest in the sport is negligible.

“According to the 2015 Harris Poll of America’s Favorite Sport, Pro Football easily ranked as the most popular, distantly followed by baseball and college football. Horse racing? After experiencing a 3% overall decline in the poll from 1985–2015, horse racing now ranks as tied with women’s soccer, women’s college basketball, women’s pro basketball and men’s tennis in overall popularity.”

https://medium.com/@tpbesq/the-decline-of-americas-first-pastime-horse-racing-s-descent-into-irrelevance-bdd6866f3e24

Comment by Friendly Bob Adams Wednesday, Feb 24, 21 @ 11:42 am
@Cool Papa Bell

This is my own uninformed opinion, but I think, because of the pandemic, there is a huge, pent up demand for live events. The only thing that will hold back attendance is government covid restrictions.

“And while Wrigley Field is packed - The “Rate” or Sox Park never is… So that only goes so far in some places or sports.” I agree. Not every venue is well attended in normal times.

Comment by Steve Polite Wednesday, Feb 24, 21 @ 11:52 am
===Maybe some people will go Duch on it===

I see what you did there.

Comment by CEA Wednesday, Feb 24, 21 @ 1:51 pm
== overall interest in the sport is negligible. ==

From the end of the 19th Century until the 1960’s, baseball, boxing, and horse racing dominated the sports landscape. Baseball is hanging in there (but is nowhere near as popular as football.) Boxing and horse racing are almost dead.

Comment by Roman Wednesday, Feb 24, 21 @ 1:54 pm
Example #479 as to why government should generally stay out of supporting private industry.

Comment by Jughead Wednesday, Feb 24, 21 @ 2:32 pm
@Da Big Bad Wolf- They don’t live there year round. They are employed by the horse owners, not Arlington and they go where the horses go.

Comment by Littleblue Thursday, Feb 25, 21 @ 9:33 am