Arlington Heights Votes to Ban No-Gaming Clause in Sale

The village of Arlington Heights, Ill., has tossed a potential monkey wrench into the planned sale and presumed demolition of Arlington International Racecourse.

The Arlington Heights village board at a May 3 meeting voted to prohibit the track's owner, Churchill Downs Inc., from including in any sale agreement a provision the new owners could not use the property for gaming or certain other uses.

The village legal and planning department, which drafted the ordinance, said the intent is "to preserve all options for the property whether it includes complete redevelopment through a long-term master plan or continued use as a horse racing facility with additional redevelopment."

"We want to make sure that when this property is sold that there is still a possibility of horse racing here," the Arlington Heights Daily Herald quoted village trustee Robin LaBedz. "It's such a beautiful site. It's world renowned."

CDI announced the sale of the 326-acre site, including Arlington's iconic cantilevered-roof grandstand, after declining the opportunity to add casino gaming at the track. CDI cited adverse tax provisions of the new casino legislation—provisions that would have diverted part of a casino's adjusted gross revenue to the track's purse account.

The Louisville, Ky., company also has a majority ownership stake in Rivers Casino, Illinois' most successful gaming facility, which is located less than 15 miles from Arlington, and is bidding for at least two other proposed new casinos in the northern Illinois area. An Arlington casino could compete with any or all of those.

Two horsemen's groups, led by Illinois Thoroughbred Horsemen's Association president Mike Campbell and Arlington's perennial leading trainer, Larry Rivelli, are spearheading efforts to put together bids to buy the track and preserve racing. Rivelli said on opening day of the current Arlington meeting April 30 he is confident he can put together financing for a bid but dubious CDI would sell to horsemen under any circumstances.

"I just don't think they want to sell it to us," he said.

"Usually, I'm the favorite around here," Rivelli said. "In this thing, I'm the longest shot on the board."

While the village's legal action might constrain CDI's ability to prohibit gaming on the facility, the issue might be moot as there has been no public interest by anyone other than the horsemen in saving racing at Arlington with or without a casino.

CDI has set a June 15 deadline for submission of bids, severely restricting the window of opportunity for a new bidder interested in gaming and racing to cobble together a plan to acquire the facility and a campaign to win approval. 

The village staff itself sounded a note of caution in transmitting the proposed ordinance to the village board.

"Though it is not yet known whether any of these uses are realistic possibilities or financially viable, village staff desires to preserve all reasonable options in order to ensure the best possible re-use of the site," the transmittal document said.

Other options discussed for the well-placed parcel have included mixed-use developments of various types or a new stadium for the Chicago Bears football team.