Thoroughbred Breeders’ Association of New Jersey
Darby Development, which has operated Monmouth Park for the past 12 years, has assumed full custody of the property under a new 85-year lease agreement, it was announced Aug. 29. Darby, which is under the leadership of Monmouth Park CEO and chairman Dennis Drazin, has plans for expansion of the property that includes an already under construction sports book, hotel, housing, and more.
The New Jersey Thoroughbred Horsemen's Association, in conjunction with the New Jersey Sports and Exposition Authority, has transferred the racetrack to Darby Development effective immediately.
"Racing needs that kind of opportunity. You can't just rely upon your racing products at this point in time to be successful," Drazin said.
He added, "You have to make it a destination for people to come to. It's not just for horse racing. You have to bring people into the area with all the other entertainment aspects that you're going to create in order to get them to cross over into horse racing and sustain the product, that revenue stream for horse racing."
Darby will work with developer Morris Bailey to bring the vision for a new Monmouth Park to life. Work on the new Caesars Sportsbook began in May. Drazin said groundbreaking on other elements could happen within six to nine months.
Drazin said this plan has been in the works for the better part of the 12 years in which Darby operated the racetrack for the NJTHA.
"The horsemen really weren't able to sustain all the obligations to keep the track open, so Darby has, in effect, been funding it for the past 12 years. We got to a point where the horsemen asked Darby to take over the obligations on the lease going forward; they recognized that they couldn't make it sustainable, and so we entered into a partnership back in 2012 with Morris Bailey."
Drazin said that in 2012 Bailey hired the architectural firm Populous, which worked on projects with Churchill Downs and is involved with the Belmont Park redesign, and it put forth a vision for what Monmouth Park could be in the future. The timing wasn't right, but over the past two years Darby, Bailey's JEMB Realty, the NJSEA, the governor's office, and the town of Oceanport, N.J., have shaped a concept that is starting to become a reality.
Plans call for 298 over-55 apartments that will be built over what is currently surface parking that goes unused except on Haskell Day.
In addition, JEMB Realty will develop 80 acres that will see construction of a 200-room, high-end hotel that will likely overlook the racetrack, a sports complex that can help draw youth tournaments to the area, and an entertainment complex. There will be an option to grow beyond that initial acreage as there are more than 300 acres to the property.
"The racetrack will receive a share of the revenues so that it will be sustainable for the future," Drazin said. "In order to enable that, we needed to extend the lease, because our lease was 40 years, and we're 12 into it. ... Now we have an 85-year lease, which makes the property much more sustainable for developers."
Said Bailey, in a release, "We have always been staunch advocates for returning the area to its rightful place as the premier destination for horse racing and family entertainment while including important components that serve the community at large. After an intensive, complex, and lengthy process, our plans will create a vibrant lifestyle destination for future generations and will put the racetrack on a trajectory for enormous growth."
Work is already underway on a new sportsbook, but Drazin said that sports betting alone does not provide enough revenue in a state where casinos and slot machines are confined to Atlantic City while neighboring states don't face the same hurdles. However, he said New Jersey may consider casino expansion in the next year or two, and if that happens, he would look to bring a casino or a racino to Monmouth Park.
More than $20 million has been invested in the new sportsbook, which is about a year from completion. Betting at the sportsbook is key to drawing a younger audience.
"We've also done a lot of things technology-wise. ... We've had TVG (which operates 4NJBets) as a partner, and they've been a good partner for many years. But now we're expanding that so that NYRA Bets is going to come in, and they're going to be like the gatekeeper to bring in every sportsbook, every online casino operator, every ADW, so you're going to have 20 times the amount of eyes that are on your product," Drazin said.
"Monmouth Park Racetrack is an iconic New Jersey attraction," New Jersey Gov. Phil Murphy said in a release. "We are thrilled to see this project move forward, which will bolster the local economy and ensure that the area is a popular destination for generations to come.
"Through this important development, the history and legacy of this racetrack will not only be solidified but expanded and enhanced so that more New Jerseyans can experience its excitement."