“We have four, possibly five, potential buyers talking to Colliers, who are handling the negotiations for us,” says ATC president Jamie Mackinnon.
“We haven’t had those final offers and their details presented to us yet but that shouldn’t be too far away.”
With changes in the property market and interest rates, ATC is not expecting to get the $100m of the previous offer but needs to accept a realistic offer to pay off the crippling loan.
“Our bank has been very good to deal with and they are in constant contact,” says Mackinnon.
“They knew we have assets that will enable us to pay the loan off and once Franklin Park is sold, we still have other assets if we need to service more debt heading forward.”
Those assets include another block of land at Alexandra Park that has road frontage and could be developed, while the ATC also own the leases to the commercial levels of the apartment buildings already built, which are occupied and operating.
The end result of a disastrous decade of development for the club, and northern harness, will hopefully be all debt paid with at least some non-racing income left, but the damage done to harness racing and the “what could have beens” will haunt the industry in Auckland, potentially for decades.
There is no suggestion any of the current ATC staff or board are responsible for the debacle, which started when trusted sponsor and business partner Canam Construction was awarded the contract to build the first development.
It ended up with one apartment complex needing to be partially rebuilt by another developer and then a lengthy court case against Canam.
That resulted in a judgment awarding $86m to ATC but it received none of that money after Canam Construction went into voluntary liquidation in 2021.
While most in harness racing acknowledge the need to move on, there are still two major questions to be answered. Mackinnon is adamant about the answer to one.
He says sale of the remaining property ATC owns at Alexandra Park, including the racetrack and stabling area, and moving out of the Auckland metropolitan area, is not even being considered.
“That will not be happening while I am president or while any of this board are here,” he told the Herald.
“We have no appetite for that and have seen what it has done in other cities where harness racing has moved out of the main metropolitan area.
“In my opinion it becomes just a broadcast sport after that and it it is too hard to attract people to the track.”
But while Alexandra Park looks certain to remain the home of Auckland harness racing, the industry will almost certainly need to build another training centre to replace Franklin Park, otherwise younger trainers could be forced out of the industry, being unable to afford to buy their own properties.
“One of the conditions of the sale we will be looking at, apart from the price obviously, is the lease-back period for Franklin Park,” says Mackinnon.
“We’d like to think that could be several years, which would give us time to find the right property to look to build a new facility.”
Mackinnon believes Harness Racing New Zealand is sympathetic to the need for a training track in the north and hopes the national body will be able to help at least partially fund one.
Michael Guerin wrote his first nationally published racing articles while still in school and started writing about horse racing and the gambling industry for the Herald as a 20-year-old in 1990. He became the Herald’s Racing Editor in 1995 and covers the world’s biggest horse racing carnivals.
