Churchill Buying Property Near its Louisville Track

Churchill Downs Inc. has bought property surrounding Churchill Downs racetrack at an unprecedented pace recently, a Louisville television station’s website reported May 7.

The Louisville-based company said April 27 that proceeds from last year’s $26.5 million sale of excess property at Calder Casino & Race Course in South Florida was used to buy property surrounding its namesake Louisville track, a move that would defer taxes on the Florida sale proceeds.

The Sunday report on television station WDRB’s website said its analysis showed Churchill spent almost $13 million in the past six months to buy nearly three dozen properties around the Central Avenue track. Those include a bank at the corner of Fourth Street and Central, a commercial strip mall across from the barn area and next to the old church where the track’s racing office had been, and the privately owned parking lot at the corner of Ninth Street. The story said Churchill spent more in the past six months on neighborhood property than it had in the prior decade.

Plans for the properties have not been announced, although Churchill historically has used similar land for parking. During an April 27 conference call with investors and others, company officials said they were considering adding historical gaming at the Churchill racetrack property or the Churchill-owned Trackside Training Center located a few miles away.

Based on what the company said April 27, it appears nothing major will be done with the purchased property until at least next year.

CDI chief financial officer Marcia Dall said Churchill’s major capital projects for the remainder of the year are to finish the $37-million construction of the new Starting Gate Suites and complete a $25-million hotel at a CDI casino in Mississippi. The company also has plans for "smaller strategic projects" at other CDI properties, she said. 

Dall said CDI spent $27 million on capital projects for the three-month period ending March 31, including $10 million in that time on property around Churchill. CDI is able to defer taxes on $14 million of the gain from the Calder property, which included a barn area. The remainder of the $27 million was spent finishing a $16 million clubhouse renovation at Churchill and starting the Mississippi hotel, she said.