- 700: The number of jobs Churchill Downs and Delaware North Companies say could be created at a new venue in Lebanon.
- $60 million: Purchase price — $10 million paid in cash plus a $50 million promissory note delivered at closing.
- 2,500: Video lottery terminals that could be allowed at the site.
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COLUMBUS — A $255 million development that could create 700 jobs was announced Thursday after Delaware North Companies and Churchill Downs Inc. struck a deal to buy Lebanon Raceway and develop a racino with up to 2,500 video lottery terminals.
The joint venture creates Miami Valley Gaming & Racing LLC, which will develop and operate the facility. The new company plans to acquire the harness racing licenses and assets now held by Lebanon Trotting Club Inc. and Miami Valley Trotting Club.
Lebanon Raceway, on Ohio 48 north of downtown Lebanon, currently operates at the Warren County Fairgrounds. Harness racing will continue there until the new facility is built.
Lebanon Trotting Inc. and Miami Valley Trotting Inc. announced last month plans to buy approximately 120 acres of land at the corner of Ohio 63 and Union Road, near the Lebanon Correctional Institution site for $4.5 million.
It was not confirmed Thursday night if that could be the location of the proposed racino.
The new owners will ask the state for a 10-year VLT license, which costs $50 million, and invest $175 million in the new facility and video lottery terminals.
The sale is expected to bring $60 million to the Carlo and Nixon families, which currently own the assets. And the agreement calls for another $10 million payment to the sellers if the VLT facility performs as expected.
The Ohio Lottery Commission and the State Racing Commission need to approve the deal.
Delaware North Companies and Churchill Downs said they aim to begin construction of the new facility this year and open it in 2013.
Lebanon Raceway officials have previously said that they need to be able to add video slot machines and construct a new facility in order to make their operation profitable.
The Carlo and Nixon families have owned the Lebanon Raceway since 1951. Both families will remain as consultants to the new operators.
C. Keith Nixon Jr., vice president of Miami Valley Trotting, said in a written statement: “After all these years of having the track in our families, we wanted to be certain the new owners would have the resources and the experience to operate a successful facility. We’re confident that we are placing our families’ legacy in good hands with both a global hospitality company, Delaware North Companies, and the legendary Churchill Downs racetrack.”
John Carlo could not be reached for comment Thursday night.
The new owners say the racino will bring $24 million a year to the area.
Delaware North Companies Gaming & Entertainment and Churchill Downs will each own a 50 percent interest in the new venture.
How the Lebanon deal would impact Penn National’s plans to move a harness-racing track to Dayton was not clear Thursday night.
Bob Tenebaum, spokesman for the gaming company, would not comment on the Lebanon deal.
Penn wants to build a $200 million racino in north Dayton at the site of a former Delphi plant at Needmore and Wagner Ford roads. Penn also is investing about $400 million on a casino in Columbus and $200 million for a new casino in Toledo.
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