May12, 2014
Via Hand Delivery
Dear SenatorX
Churchill Downs Incorporated(CDI)is committedto theFair Grounds,city ofNew Orleans and thestate of Louisiana.WhileCDIhas made significant investments in our Louisianaoperations sincewe acquiredtheFair Groundsin 2004,we recognize theneedfor continued investment.Outlined below are thefourareaswe will addressover the course of the next year.
Turf
CDI will continue to make improvements to the turf course.In 2012,CDIengaged Michael “Mick”Peterson,Ph.D.,a professor in the College of Engineering at the University of Maine and a nationally recognized expert in racing surface design, safety, and maintenance, toevaluatethe Fair Grounds turf courseandissuerecommendations forcapital investmentsrelated tosurface maintenance.In 2013,CDI engaged Meyers Engineers, LTD (Meyers) to evaluateand make recommendations regardingthe drainage infrastructure of theturfcourse.Dr. Peterson’sassessment of the course and recommendations for maintenancecoupled with Meyers recommendations for drainage improvementsled to CDI budgeting$690,000(to be spent in phases)towardvarious surfaceand drainagerepairs.Prior to the 2013-2014 Thoroughbred meet,wecompletedthe first phase of recommendationsand invested$200,000incapitalimprovementstoturns three and four of theturfcourse.WewillcompleteDr. Peterson’sandMeyersrecommendations withan estimated $490,000ofsurface anddrainageimprovementsto the turf courseprior to the start of the next Thoroughbred meet on November 21, 2014.
Guest Experience
We wantourguestsinLouisianatohavepositivecustomer experiencesat the Fair Grounds and our OTB locations.Improvementsrelatedto enhancingthecustomer experience at Fair Groundswill be madepriorto the start of the2014-2015Thoroughbredmeet, and willinclude;installation ofanew infield video board,repair or replacement ofthe video board in the paddock(estimated combined totalof the two boards$200,000-$250,000), alive bugler on weekendsandan increase in the numberofmutuel tellerspresentduringlive racing.Inaddition,to improvetheOTB customer experience,TV’s at our OTBs andat Fair Groundswill be repaired or replaced,when they reach a point of disrepair.
CDIunderstandsthe value ourcustomersbringto our business, whether at the Fair Grounds or at one of our OTBlocationsand in effort to better demonstratethis, wewill hostadditionalcustomer appreciation events as well as increasethe number ofpromotionsofferedthat directly benefit ourracingguests.
Marketing
In an effort to attract and increase the number of local and non-local guests at theFair Grounds who participate inpari-mutuel wageringwe will increase marketing efforts related to attracting pari-mutuel customers.Not only will weintegrateracing relatedmarketing toolsinto advertising and marketing campaigns that have beenfocused onslot and video pokeroperations, we will work withlocal hotels and tourism associations to identify strategic partnershipsdesignedtoattract tourists to the Fair Grounds while theyare in New Orleans.Theseenhanced and strategicmarketingchangeswillrepresent $100,000inadditionaladvertisingexposuretoentice pari-mutuel customers to visit the Fair Grounds.
Additional events such asconducting regular handicapping tournamentsduring the 2014-2015 live meetas well asofferingLundiGrasracingwillbedonein an effort to increase the number of guests at FairGroundswho participate in pari-mutuel wagering.
We will alsocontinue to work withleading on-line and export media partnerssuch asTwinspires.comand the Daily Racing Formin an effort to increase the amount of handle generated on Louisiana races.
Facilities
We will continue to improve thebackstretch facilitiesat Fair Grounds.While there is an existing checklist process to ensure each of our barns are in working order prior to the start of a live meet, we have enhanced thisprocess and havealreadystarted preparing barns on the backstretch for the 2014-2015 Thoroughbredmeet. In addition,we will beimplementing awork order processtohelp prioritizemaintenance items on the backstretch. This willallow our team tostayon top of general maintenance issuesaswellas ensurethe safety ofour equine population and those individuals thattrain andprovide careto the horses during their stay on the Fair Groundsproperty.Weestimate$100,000 in additional operating and capitalexpendituresonour backstretch prior to thestart of the2014-2015Thoroughbredmeet.
Churchill Downs Incorporated iscommitted to the continued improvement ofFair Grounds. I hope this letter will provide you with assurances thatCDI willcontinue to invest in thehistoric racetrack,the city ofNew Orleans and the state of Louisiana. My team at the Fair Grounds will workwith and maintain a dialogue with the Louisiana State Racing Commission theLouisianahorsemen, legislators and other associations in an effort to achieve what is best for horse racing in Louisiana.
Respectfully,
______
William Carstanjen
President& Chief Operating Officer