Everett Decries Hubbard Plan : Hollywood Park: Former chief executive officer complains at stockholders’ meeting that track is over-expanding.

Several Hollywood Park shareholders, including former chief executive officer Marje Everett, said Monday that the track is over-expanding in its efforts to rid the company of $63 million in debt.

At Hollywood Park’s annual stockholders’ meeting Monday, Everett led an attack on chairman R.D. Hubbard’s plan to diversify the use of the track’s 335 acres by adding a card-playing club, a concert hall, a golf complex, a gourmet restaurant and retail shops. The $100-million expansion, which could be completed by 1995, will combine with the racing operation to produce $177 million in revenue in three years, according to Hubbard’s estimates. Revenues at Hollywood Park were $62 million in 1991, with the company announcing net income of $1.5 million.

“I am very much concerned about the form of expansion that is going on,” said Everett, who is one of Hollywood Park’s largest stockholders. “These things are not kindred to the business we’re in. The music center is a foolish investment and will not make any real money. The luxury restaurant is a bad bet. To build an entertainment center at a time when we don’t know where the economy is going is very dangerous. It wouldnot be a good idea even if there was a goodeconomy.”

She predicted that “probably what will follow the card club is a casino, then slot machines, then dog racing. We should be developing quality racing.”

Everett also opposes Hollywood Park’s 24% involvement in a new race track in the Dallas area.

“The climate isn’t good for racing now,” Everett said. “Santa Anita was involved in Canterbury Downs (in Minnesota), and by the time they got out, it had cost them $17 million. New tracks like Remington Park (in Oklahoma) and Birmingham (in Alabama) haven’t been successful, either.”

After almost 20 years, Everett lost control of Hollywood Park in a $10.5-million proxy fight that left Hubbard in charge in February of 1991. Under Everett, the track’s debt reached $118 million in 1988.

According to the recent proxy statement, Hubbard owns 15.6% of the Hollywood Park stock, followed by Everett with 10.6%. In recent months, however, Everett has been selling large chunks of stock. According to Securities and Exchange Commission records, she sold 76,000 shares during a one-week period in June for more than $600,000.

Hollywood Park needs approval of Inglewood voters on Nov. 3 before it can open a card club. The card club would be located in the six-story pavilion that was built during Everett’s administration.

“That building cost $40 million and it’s been a total disaster,” Hubbard said.

“We are trying hard to get some return out of something that’s been a total disaster. All of these things are intended to eliminate the small return that we’re getting on our facilities. There should be 3,000 new jobs, 2,500 of them in the card club.”

Everett questioned Hubbard’s $400,000 annual salary, which was approved by the board in April. “It’s astronomical and unconscionable,” said Everett, who never took a salary from the track.