Baymount Incorporated is pleased to announce that its wholly-owned subsidiary Belleville Racetrack Development Corporation has entered into a $14.2 million Construction Loan Term Sheet (the 'loan') with a third party for construction of the new Quinte Exhibition and Raceway.
The loan will be secured as first mortgage on the project lands and it does not include Baymount's excess lands located adjacent to the new QER location. The loan, which is subject to final due diligence and documentation, bears interest at prime and has a term of 15 years.
Mr. Graham Simmonds, President and Chief Executive Officer of Baymount stated, "This is a significant milestone for our company and this loan represents substantially all of the funds required to complete this exciting new facility."
He added, "We remain very excited to be bringing this significant new development to the City of Belleville. Our management team continues to work closely with the OLG and the City of Belleville to ensure that the new QER is a centre for growth and expansion of the local economy."
The new QER is the eighteenth Ontario racetrack to receive a slot machine allocation under OLG's Slots-at-Racetracks program.
The new facility will be constructed on BRDC's Belleville property which is located on Bell Boulevard near the Wallbridge-Loyalist Road and Highway 401 interchange.
The planned 75-acre development will feature the new racino and includes 25 acres for the future location of the new Quinte Exhibition. The cost to complete the construction of the new Slot and Clubhouse facility is budgeted at approximately $15 million.
BRDC also owns an additional 63 acres of future commercial development land adjacent to the new QER development with 10 of these acres bordering Highway 401.
The company is currently evaluating potential development opportunities for these lands, which may include an outright sale of these additional lands.