Hawthorne Race Course Faces Financial Strain Amid "Racino" Development
A multimillion-dollar racino development plan at Illinois' Hawthorne Race Course, owned by the Carey family's heirs, has encountered a major setback with contractors filing liens for unpaid work amounting to $6.7 million. This turmoil has sparked concerns over the track's capability to secure funding for the long-anticipated project.
Lawmakers are contemplating the possibility of rescinding Hawthorne's exclusive rights to construct racinos in the region, citing the track's track record of failing to fulfill financial obligations. The filing of liens involves prominent entities such as W.E. O’Neil Construction, Milburn Demolition, and Gurtz Electric Company, seeking payments of $5 million, $430,000, and $1.1 million respectively. As Hawthorne grapples with financial turmoil, rival developers like Greenway Entertainment and Roy Arnold have expressed readiness to intervene, potentially revitalizing the struggling horse racing industry in Illinois.
Key Takeaways
- Contractors have filed liens worth $6.7 million against Hawthorne Race Course for unpaid work.
- The sizable financial tension casts doubts on the track's $400 million racino development plan.
- Lawmakers are contemplating the withdrawal of Hawthorne's exclusive rights to construct racinos in the area.
- W.E. O’Neil Construction has filed a lawsuit against Hawthorne for $5 million in unpaid demolition and construction costs.
- Greenway Entertainment and Roy Arnold stand poised to step in if the track's exclusive rights are rescinded.
Analysis
The financial strain, with liens totaling $6.7 million, poses a significant risk to Hawthorne Race Course's ambitious $400 million racino development. This predicament might prompt lawmakers to revoke its exclusive rights, providing an opportunity for competitors such as Greenway Entertainment and Roy Arnold. The heirs of the Carey family face potential reputational damage and setbacks in their casino development plans. In the short term, contractors like W.E. O’Neil Construction, Milburn Demolition, and Gurtz Electric Company endure the consequences of unpaid work. Meanwhile, the long-term implications could potentially usher in a new era for Illinois' horse racing industry through the involvement of new developers, leaving Hawthorne to confront its history of unmet financial commitments.
Did You Know?
- Liens: In this context, liens represent legal claims asserted by contractors against Hawthorne Race Course. These contractors have filed liens totaling $6.7 million for unsettled work. Liens serve as a mechanism for the contractors to secure payment for their services by asserting a legal right to the property until the debt is resolved.
- Racino: A racino integrates a racetrack, for horse or dog racing, with a casino. Hawthorne Race Course's $400 million racino development plan aims to establish a facility offering gambling opportunities alongside horse racing events. The financial strain resulting from contractors' unpaid bills raises concerns about the project's feasibility, potentially impacting the track's funding prospects.
- Exclusive rights: This term denotes the privilege granted to Hawthorne Race Course to construct and operate racinos in the region. Nevertheless, considering Hawthorne's record of unmet financial commitments, lawmakers are weighing the option of revoking these rights. If revoked, other developers like Greenway Entertainment and Roy Arnold would have an opening to enter the market and potentially breathe new life into Illinois' struggling horse racing industry.