Mystery Bidder on Hawthorne Race Course Could end Racino

An unknown corporate buyer represented by a shell company is set to purchase the Hawthorne Race Course in Stickney for $90 million, unless another buyer steps in to save the racetrack from likely being closed by the entity.

The suburban racetrack submitted a proposal in bankruptcy court to sell its assets to ALLIMAC 2023 LLC, according to the Chicago Tribune. Previously, Hawthorne president Tim Carey stated that proposals for the site’s redevelopment included data centers, a hot-button issue in city planning across the nation, as well as a $107 million offer. The track is the last remaining professional horse racing track in the Chicago area, according to the outlet.

Bankruptcy judge Timothy Barnes will decide whether ALLIMAC has obtained the “stalking horse” bid, the first formal bid on the property, on Monday. Other potential bidders will have until Tuesday, June 30, to submit bids.

Hawthorne filed for Chapter 11 bankruptcy in February while attempting to sell the track to pay off over $100 million in debt. Hilco Real Estate and Province have had contact with close to 8,000 potential buyers, according to the outlet, and 40 have conducted due diligence on the track. The track’s heavy industrial zoning and proximity to the city have been key in enticing potential buyers for Hilco.

Hawthorne received state approval to build a “racino,” or hybrid race track and casino, at the site in 2019. The development never materialized after years of political opposition, liens filed against the owners and financial woes. The gambling income was meant to bolster the struggling track and horse racing in Illinois at large, but without the financing and a January revocation of the track’s racing license. If the track is sold, the racino style development is still in play, but the property’s zoning opens it up to a variety of possible developments.

— Hunter Cooke