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International Speedway Forms Joint Venture With The Cordish Company
09/05/2007 |
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International Speedway Corporation Tuesday announced its wholly owned subsidiary, ISC Properties Inc., has entered into a 50/50 joint venture ("the Joint Venture") with The Cordish Company ("Cordish"), one of the largest and most respected developers in the country, to explore a mixed-use entertainment destination development to be named Daytona Live!, on the 71 acres ISC owns across from the Daytona International Speedway.
Preliminary conceptual designs call for a 200,000 square foot mixed-use retail/dining/entertainment area as well as a 2,500-seat multi-screen movie theater, a residential component and a 160-room hotel. Featuring the country's and region's leading entertainment and retail concepts, Daytona Live! will transform from a thriving lunch and retail destination during the day to a unique and exciting dining and entertainment experience in the evening hours. The potential redevelopment could also include approximately 200,000 square feet of office space to house the headquarters of ISC, NASCAR, Grand-Am and their related businesses, and an additional 22,000 square feet for other tenants.
Cordish is the leading developer of large-scale urban revitalization projects and entertainment districts. Notable developments include Power Plant Live! in Baltimore, Maryland; the Hard Rock Hotel and Casinos, Hollywood and Tampa, FL; Fourth Street Live! in Louisville, Kentucky; and Bayou Place in Houston, Texas. Cordish also recently unveiled its new NASCAR Sports Grille concept in Orlando, Florida.
"We're thrilled to partner with such an experienced and renowned developer to explore this important opportunity," said ISC President Lesa France Kennedy. "Cordish has seen tremendous success in other similarly styled developments across the country, and they bring a wealth of knowledge to our proposed project. It is our hope that Daytona Live! will serve as a new gateway to our community, creating an exciting entertainment center that will become an attractive year-round destination for tourists and area residents."
"We are extremely excited and honored to be selected as the developer to explore such a ground-breaking and important project," stated David S. Cordish, Chairman, The Cordish Company. "Given our relationship with NASCAR for the development of the NASCAR Sports Grille and other similarly-themed dining establishments, this partnership with ISC was a natural fit. We expect to leverage this experience with the popularity of Daytona Beach and the renowned Daytona International Speedway to create a unique environment and unparalleled entertainment experience for racing fans, visitors and Volusia County residents, which will serve as a catalyst for further quality growth in the Daytona Beach area."
Final design plans will be completed over the next several months and will incorporate the results of local market studies and further project analysis. If results of these analyses are favorable, ISC and Cordish expect to begin the permitting process over the next several weeks and are hopeful to receive all necessary approvals in the next twelve months.
Ms. France Kennedy concluded, "ISC is committed to having Daytona International Speedway remain the leader in cutting-edge motorsports entertainment. We believe this project will further enhance that reputation, while continuing to raise the profile of Daytona Beach and its various attractions. We look forward to working closely with our community and its leaders to make the project something of which we can all be proud."
Financial Implications
The current estimated cost for the redevelopment is approximately $250 million. Both ISC and Cordish will contribute an equal amount of equity to the Joint Venture. ISC expects its contribution to range between $15 million and $20 million in cash, as well as land currently owned, for the proposed redevelopment. The remainder of the project will primarily be privately financed by the Joint Venture. However, specific financing considerations for the Joint Venture are dependent on several factors including lease arrangements and availability of public incentives.
As previously announced, if ISC proceeds with the project, it is expected that several of its existing corporate headquarter offices and other buildings, which are not fully depreciated, will be razed during the next six to 24 months. This will result in a non-cash charge relating to additional depreciation of approximately $12 million in total, or $0.14 per diluted share after tax, over the remaining three quarters of fiscal 2007.
(Source: Sportsbusinessnews.com)
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