Hubbard Makes $40-Million Cash Offer for Los Alamitos

Dee Hubbard, whose estimated $160-million tender offer for Hollywood Park and Los Alamitos race tracks was rejected last December, has made a $40-million cash offer for 190 of the 300 acres at Los Alamitos.

The offer, which was delivered Friday to Marje Everett, Hollywood Park’s chief executive officer, was made by Hubbard and a partner, Dr. Edward C. Allred of Long Beach. Allred and Hubbard are prominent breeders and owners of quarter horses, and Hubbard is also chairman of AFG Industries in Irvine, the country’s fourth largest glassmaker. Allred is vice president of the Horsemen’s Quarter Horse Racing Assn. (HQHRA), which under a lease agreement runs a meeting at Los Alamitos.

Hubbard and Allred would like to buy the Los Alamitos race track property, plus 50 acres on the same tract that could be commercially developed. Through a spokesman, Hubbard said that he is not interested in buying the other 110 acres at Los Alamitos that include a golf course.

Neil Papiano, Hollywood Park’s chief counsel, could not be reached to comment on Friday’s offer.

Hubbard’s spokesman said that the offer is for property that cost Hollywood Park $27 million when it was purchased about four years ago.

Since then, Hollywood Park and Los Alamitos have had serious declines in business while operating thoroughbred, quarter horse and harness meetings at the tracks, and the company reportedly is in debt for about $100 million.

“The quarter horse business has faltered,” Hubbard’s spokesman said. “Mr. Hubbard and Dr. Allred are horsemen and they want to go into Los Alamitos and revive the sport.”

The Hubbard-Allred offer is contingent on rezoning of the 50 acres of non-racing property that would be purchased, and also contingent on modifications of racing leases that are currently held by the HQHRA and the Orange County Fair at Los Alamitos.