THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, November 7, 1995 TAG: 9511070318
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Short : 44 lines
An investor developing a casino in the Denver area has purchased a 50 percent interest in Virginia's parimutuel racetrack for $5 million, the investor said Monday.
Colonial Downs, which holds a license to build Virginia's thoroughbred and harness racetrack on a 345-acre site in New Kent County, reached the deal with developer and financier Jeffrey P. Jacobs.
``Colonial Downs is the model for highly successful racetracks of the future and we view it as an excellent investment opportunity,'' Jacobs said in a news release.
Jacobs agreed to provide an immediate infusion of $2.25 million, and the remaining $2.75 million will be paid pending the resolution of a court appeal over the state license awarded to Colonial Downs.
The investment will represent a 50 percent ownership interest in Colonial Downs, which plans to open the first of its six statewide satellite wagering facilities in Chesapeake by late December.
The court appeal, involving another applicant who sought the sole license issued by the Virginia Racing Commission, was rejected by the Richmond Circuit Court and is pending in the Virginia Court of Appeals.
Jacobs is chairman, president and chief executive officer of Jacobs Investments Inc., an investment holding company with offices in Cleveland and Palm Beach.
An affiliate company, Jacobs Entertainment, will be making the Virginia investment. Jacobs Entertainment is developing a $60 million casino in the Denver area.
The company is perhaps best known for urban commercial and residential real estate development projects, including ``The Flats,'' an abandoned industrial area of downtown Cleveland that was converted into a mixture of restaurants and entertainment businesses that attract more than 2 million visitors annually. by CNB