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                        The Houston Chronicle

                    August  7, 1993, Saturday, 2 STAR Edition

SECTION: A; Pg. 31

LENGTH: 446 words

HEADLINE: Horse racing site gearing up for groundbreaking

BYLINE: STEPHEN JOHNSON; Staff

KEYWORD: Houston

 BODY:    As crews prepare the site for the Sam Houston Race Park, a 
spokesman says an official groundbreaking ceremony will be held later 
this month for the $ 75 million project.

   The horse racing complex is to be completed and in operation by April 
29, 1994, said Scott Lamb, spokesman for  Maxxam  Inc. Charles Hurwitz,  
president  and chief operating  officer of Maxxam, has taken control of 
the project and is credited with accelerating its development.

   Sam Houston Race Park was the first track to get a Class I license -- 
one of only three granted in the state -- and appears destined to become 
the first to operate in Texas.

   Racing dates for the track were approved Monday by the Texas Racing 
Commission with thoroughbred racing scheduled from April 29 through June 
19.  Quarter horse racing will take place from July 1 through Sept. 18.

   Track owners are also hoping to secure approval for a fall racing 
schedule.

   Funding for the track was raised by a private offering of at least $ 
75 million in bonds promising a return of 11.75 percent interest, a rate 
confirmed by Lamb.

   Lamb declined to give other details on the amount of funding raised by 
the bond sale but confirmed that shareholder investments will be secured 
by the 300-care site and the improvements financed by the bonds.

   ""We're gearing up for a groundbreaking later this month,'' Lamb said.  
""We're doing some grading and some site preparation work. ''

   Although some contacted about the bond offering referred to the 
securities as ""junk bonds'' -- considered highly speculative while 
promising a high rate of return -- Lamb said the investment is a secure 
one.

                                                                       
PAGE   60                      The Houston Chronicle, August 7, 1993                      


   ""Actually, this was a private placement of debt and we aren't going 
into a whole lot of details on this,'' Lamb said.

   ""We hope to be operating by April 29, 1994.  That is the target date 
and it's an aggressive construction program. ''

   The track will be located northwest of Texas 249 on the south side of 
Sam Houston Parkway West.

   An attempt had been made to fund the racetrack with Harris 
County-issued revenue bonds that would carry a disclaimer that the bonds 
would not be secured by public funds.

   This was disputed by County Attorney Mike Driscoll who said this 
""legal veil'' would not hold up should the racetrack fail to provide a 
return on the investments.

   When this plan collapsed, the stockholders of the track obtained 
funding through a private bond sale.

   In May, Hurwitz purchased additional stock in the racetrack venture 
from former Houston Astros owner John McMullen and the Houston Sports 
Association.  Hurwitz and his family reportedly now control about 40 
percent of the stock.


                                                                       
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