Changes Planned for Los Alamitos : Race track: Arnold wants remodeled or rebuilt facility. Cost might reach $25 million.

Lloyd Arnold, who headed a group that recently bought Los Alamitos for $71 million, has outlined an ambitious plan that would include a new or remodeled racing facility, a refurbished golf course, office buildings and a hotel, all on the Cypress site.

Arnold plans to formally announce his three-step plan later this year.

The biggest step is the remodeling or rebuilding of the racing facility. Arnold has already decided to tear down the turf club and clubhouse areas of the track. He then may rebuild the turf club above the grandstand area.

He said, however, that he prefers a second option, an entirely new facility that would be built on the parking lot. Then, the current facility would be demolished and the new one would be moved onto the foundation where the current facility stands.

The race track and parking lot are part of a 128-acre parcel.

The building of a new facility would cost $23 million-$25 million. If Arnold decides to simply reconstruct the grandstand and clubhouse, the cost will be half. A decision will be made in the fall, based on the success of racing this year. So far, the track is doing very well, with both attendance and handle up 20-25%.

“We’ve already made up our mind after running this thing a month that we are going to do one of the two,” Arnold said. “If we come back here this fall and average a million dollars a night (betting handle) on harness and a million on the quarter horses, we’re willing to take the risk. I have no doubt we’ll obtain the million easy.”

After 40 days of the current harness racing meeting, the overall handle is almost $800,000 and climbing.

Arnold has already sent the plans for the new facility out for estimates. He figures that racing would be interrupted for only four to six weeks and that construction would start within two years.

Other plans for the racing strip include moving the paddock to the spectator side of the track and a new $2-million matrix board. Both should be in place before the end of the year and are not contingent on the other plans.

A second step of the Los Alamitos plan is the refurbishing of the 93.5-acre golf course. The old clubhouse has already been destroyed and a new 15,000-square foot building will be under construction soon. In addition, a double-deck driving range will be built.

Cost of the golf project is pegged at $2 million-$3 million and will be finished by mid-September. Arnold says he expects the golf course to average 100,000-125,000 rounds a year.

The third step is the development of 75 acres of frontage property on Katella Avenue and Walker Street. To do that, though, Arnold needs rezoning approval from the citizens of Cypress. He said a referendum will probably be added to the April 24 ballot and he expects it to pass, unlike a previous one. He says he has the support of Concerned Citizens of Cypress.

“The one bid that got recalled included the redevelopment of the golf course,” Arnold said. “That was more than the citizens of Cypress wanted. But we’re only asking for one-fourth of the property to be rezoned, where the other group wanted two-thirds of the property.”

The property would house a business park and professional offices all along Katella, except where the golf course is, and along Walker between Katella and Cypress Avenue. A hotel and restaurants would be built on Katella near where the Vessels Stallion Farm used to be. Arnold said there has been interest shown by several major hotel chains but declined to name any.

Arnold said he prefers to sell the property but that most of the decisions in the redevelopment will be handled by one of his partners, Buzz Oates. Oates is the biggest warehouse builder in Northern California.

“I believe this is the greatest spot in the world for a race track,” Arnold said. “Orange County has everything. It has the population. It has the affluent population. It’s a low crime area. It’s clean and the weather is unbelievable.

“There is a tremendous need in Orange County for night entertainment and it’s my dream to make this a place you can come at night.”

Arnold expects most racegoers to come from within a 15-20 mile radius of the track.