Magna Entertainment has completed its acquisition of Multnomah Greyhound Park in Portland, Ore.
The racing conglomerate controlled by Frank Stronach has acquired the operations of Multnomah Greyhound Park for $5.97 million. Approximately one-third of the purchase price was satisfied by the issuance of 330,962 shares of Class A Subordinate Voting Stock of MEC, and the balance was paid in cash. Concurrent with its acquisition of the operating rights, Magna entered into a lease to occupy the real estate upon which the operations are conducted for up to five years.
Magna also is leasing the Portland Meadows Thoroughbred racetrack, which commenced its live meet Oct. 27. The opening of the Portland Meadows meet was delayed by MEC Oregon, a wholly-owned Magna subsidiary running the meet, due to environmental concerns relating to the storm water retention system utilized by the prior operator of the facility. MEC Oregon recently reached an agreement in principle with the U.S. Environmental Protection Agency regarding a new storm water retention system.
Portland Meadows traditionally runs a live thoroughbred meet from mid- October through April of each year. During its live meet, Portland Meadows acts as the hub which controls and processes all wagers placed at any of the fifteen off-track wagering facilities within the State of Oregon. Multnomah Greyhound Park operates its live greyhound meet from May through mid-October of each year, and acts as the Oregon hub during that time period.
Jim McAlpine, President and Chief Executive Officer of MEC, stated: ``We look forward to establishing MEC as an important member of the Oregon racing and business communities. We believe the State's established system of fifteen off-track wagering facilities and regulatory climate fit well with our ongoing initiatives in the account wagering and electronic media fields. Our plans for the future include the establishment of a new thoroughbred racetrack in the Portland area. We are anxious to continue to work with local horsemen and racing enthusiasts to develop a successful racing operation''.