Assiniboia Downs’ ownership is betting on a $100 million deal with Peguis First Nation.
Both groups announced a partnership to build hotels and stores on the racetrack’s parking lot.
The plan, however, could be putting its betting licence in jeopardy.
In a deal with Peguis First Nation, two hotels, a conference centre and retail stores will spring up on the parking lot between the racetrack and the MTS Iceplex.
"I think the traffic, in terms of the development itself, is going to increase and I think it will be a destination point,” said Chief Glenn Hudson of Peguis First Nation.
"I think the sky is the limit out here for what can be done…the site is large,” said Darren Dunn from Assiniboia Downs. The area spans about 40 acres in size.
The deal includes a $15 million mortgage on the Downs, fronted by Peguis, which would be interest free and with no payments for 25 years.
Earlier this week, the Manitoba Horse Racing Commission threatened to yank the jockey club’s betting licence by Jan. 1 over concerns this was a back-door attempt by Peguis to take control of the racetrack.
“Disappointing - I think it was an overreaction to the situation,” said Dunn.
In a meeting Thursday evening, the Manitoba Horse Racing Commission granted a temporary license to the Manitoba Jockey Club, to allow simulcast betting continue until February 28, 2014.
Both parties have agreed to let courts determine the MHRC’s request to review the joint venture agreement. A hearing is set for February 25.
The Commission says construction of the proposed development won’t start until the matter is resolved.
"We're obviously intending to sit down with them and try to resolve the outstanding issues," said Jeffrey Rath, lawyer for the jockey club.
Peguis Chief Hudson admits his community does want to eventually own the Downs and said the ultimate goal of the development is a casino at the location.
“There's definitely discussions that need to go on in terms of establishing a facility here," said Hudson.
Those discussions would have to take place with the province. So far, the NDP government’s finance minister is dismissing the casino idea.
"If a casino is part of that plan, that is something we have said repeatedly over the last several years we are not going to approve,” said Jennifer Howard.
Even without a casino or betting licence, Peguis and the jockey club want shovels in the ground by summer.
- with a report from Jeff Keele
