Canterbury Park Holding Corporation Announces Real Estate Transactions and Related Developments
May 19 2016 - 5:00PM
Business Wire
Canterbury Park Holding Corporation (NASDAQ: CPHC) (the
“Company”) today announced it has completed two significant,
previously announced real estate transactions. The Company also
reported progress on related initiatives to facilitate its real
estate development plans.
On May 13, 2016 the Company sold 23.8 acres of land on the north
side of its Racetrack property to United Properties for
approximately $4.3 million. Approximately $1.1 million of the
purchase price was paid in cash, and the remaining approximately
$3.2 million will be paid by United Properties to the Company under
the terms of two promissory notes. The promissory notes provide for
payment over a three year period at an interest rate of 1.43% and
are secured by a mortgage on the property sold.
Also on May 13, 2016 the Company purchased approximately 32
acres adjacent to the Racetrack for a purchase price of $4,881,000,
which completed previously announced arrangements under a December
2015 contract. This property, known as the “Hauer Farm” is
immediately southwest of the Racetrack property and is also the
site of the area attraction known as “Sever’s Corn Maze.”
Management Comments“We are
pleased to complete the purchase of the Hauer Farm property as we
have always considered it a strategic fit for our development
plans,” commented Mr. Randy Sampson, Canterbury Park’s President
and Chief Executive Officer. “We are actively working on plans for
the eventual development of this 32 acre parcel for an upscale
multi-family residential project. However, for the near term we
will continue to rent the property to the Peterson family for
Sever’s Corn Maze, which draws thousands of visitors to RiverSouth
every weekend during its fall season.
Mr. Sampson continued: “The 23.8 acre parcel on Fourth Avenue
East that we sold to United Properties is immediately across the
street from the new Amazon distribution center, making it most
suitable for development as a business park. We are pleased to have
the opportunity to work with United Properties, one of area’s top
developers on this transaction. Also, an important feature of this
sale is that, by combining the transaction with our purchase of the
Hauer farm, we were able to structure it as a tax deferred exchange
transaction using a qualified intermediary pursuant to IRS Code
Section 1031. As a result, the majority of the approximately $3.9
million gain on the sale of the United Properties parcel will be
deferred for income tax purposes.”
Mr. Sampson added: “I am also pleased to report progress we are
making on two key initiatives that will enable us to more
efficiently develop approximately 146 acres of our land that are
not needed for our core businesses -- what we call 'underutilized
property.' First, we recently completed a platting process for all
of our land by filing the final Canterbury 6th Addition plat with
Scott County. Under this plat, Canterbury Park’s land is now
organized in an orderly series of lots and outlots which will
facilitate the sale, lease and ultimate development of the
Company’s underutilized property.”
Mr. Sampson concluded: “We are also making progress on the
reorganization of our business structure to facilitate development
of our underutilized land (the 'Reorganization'). The
Reorganization is a key element to our future development plans
because it will create the legal framework that will enable the
Company to separate its regulated gaming businesses from its real
estate development activities. We have made necessary filings with
the Securities and Exchange Commission to enable us to include the
proposed Reorganization on our Annual Shareholders Meeting agenda.
Subject to completion of the SEC review process, we currently
expect that our Annual Meeting will be held on Tuesday, June
28.”
About Canterbury
Park:Canterbury Park Holding Corporation owns and
operates Canterbury Park Racetrack, Minnesota’s only thoroughbred
and quarter horse racing facility. The Company’s 69-day 2016 live
race meet begins on May 20 and ends September 17. In addition,
Canterbury Park’s Card Casino hosts “unbanked” card games 24 hours
a day, seven days a week, offering both poker and table games. The
Company also conducts year-round wagering on simulcast horse racing
and hosts a variety of other entertainment and special events at
its facility in Shakopee, Minnesota. For more information about the
Company, please visit www.canterburypark.com.
Important Information Regarding
Information Filed with the SECThe Company has filed a
Registration Statement on Form S-4 and a preliminary Proxy
Statement/Prospectus with the Securities and Exchange Commission
with respect to the Reorganization described above. The Company
will make a copy of the definitive Proxy Statement/Prospectus
available through our website when it is available, and will
transmit to all of our shareholders information regarding how to
access the definitive Proxy Statement/Prospectus. The Proxy
Statement/Prospectus and other information filed with the SEC
contain important information about the Reorganization.
Shareholders are urged to read the Proxy Statement and the other
relevant materials carefully when they become available before
deciding how to vote on the Reorganization.
When available, investors and shareholders may obtain free
copies of the Proxy Statement/Prospectus and relevant other
documents filed with the SEC by the Company through the EDGAR
website maintained by the SEC at www.sec.gov. In addition, shareholders may obtain
free copies of the Proxy Statement/Prospectus and the other
relevant documents filed by the Company with the SEC by contacting
David C. Hansen, Secretary, Canterbury Park Holding Corporation
Dhansen@canterburypark.com.
Cautionary
Statement:From time to time, in press releases
and in other communications to shareholders or the investing
public, the Canterbury Park Holding Corporation may make
forward-looking statements concerning possible or anticipated
future financial performance, business activities or plans based on
management’s beliefs and assumptions. These forward looking
statements are typically preceded by the words such as "believes,"
"expects," "anticipates," "intends" or similar expressions.
Shareholders and the investing public should understand that these
forward-looking statements are subject to risks and uncertainties,
including those disclosed in our periodic filings with the
Securities and Exchange Commission, which could cause actual
performance, activities or plans after the date the statements are
made to differ significantly from those indicated in the
forward-looking statements when made.
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version on businesswire.com: http://www.businesswire.com/news/home/20160519006708/en/
Canterbury Park Holding CorporationRandy Sampson,
952-445-7223
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