Track Owner Plans Cypress Redevelopment
By JENNIFER BELLANTONIO
You could say it’s in God’s hands now.
Edward C. Allred, owner of Los Alamitos Race Course, said he has plans to redevelop the Cypress Golf Course, possibly with homes and shops. Allred bought the 92-acre property next to his horse-racing track last year.
But first he has to wait until the city of Cypress and Cottonwood Christian Center church hash out their plans.
The two have been working on details of a plan for the church to build on a 28-acre portion of the golf course. The church plans to buy most of the land it needs from Allred for about $17 million.
Allred, owner of Long Beach-based gynecological practice Family Planning Associates that’s been picketed by antiabortion activists, said he’s donating the rest of the land the church needs.
Once Cottonwood gets the green light on its design, the church plans to sell the city its existing 18 acres of land at Walker Street and Katella Avenue for about $18 million.
The land has been a source of controversy for years.
It’s where the church had planned to expand its campus. But the city has something else in mind: a Costco.
David Belmer, Cypress community development director, said the city is working to finalize “the agreement we will use to sell the 18 acres to Costco.”
In the next few months, the city plans to take public comments and send the Costco pact to the City Council, he said.
About the same time, the church’s plan, which is undergoing an environmental review, is set to be presented at a public hearing for final approval, Belmer said.
Allred is waiting.
Once the land swap is a go, “we could close the golf course finally,” he said.
Beyond the church’s 28 acres, Allred said he plans to develop the rest of the course “in stages.” Redevelopment will require a zoning change, public hearing and City Council approval, he said.
“There’s huge interest,” Allred said. “We’ve got all kinds of people calling.”
Plans are undecided but likely would call for homes and stores alongside the proposed Costco, Allred said.
“There’s been strong interest by another major retailer,” Allred said, declining to give specifics.
“It’s a pretty hot area from a retail perspective,” the city’s Belmer said.
Residential plans could include standalone houses and apartments or condominiums, Allred said.
“The city fathers are very desirous for additional residential,” he said. “If we were to do this in the next two or three years, the (homes) would be in the $600,000 to $700,000 range,” Allred said. “By present standards, that’s what decent housing costs.”
Allred and Chris Bardis, former partner of Los Alamitos Race Course, likely would oversee the redevelopment, according to Allred.
Bardis is a residential developer in Sacramento and Reno, Nev., he said.
The closure of the golf course would mark another shift for the area.
Originally the land housing the racetrack and the golf course started out as a 435-acre farm called Vessels Ranch run by the Vessels family.
Allred and a partner, which he later bought out, acquired the racetrack in 1989. A Japanese investor ran the public golf course.
“They were choking on it,” Allred said.
Last spring, the Japanese investor asked Allred if he wanted it.
“We bought it for not very much money,” he said.
Allred said he knew about the spat between the city and Cottonwood church, and he was “in the church’s camp.”
He talked to both sides about his plan.
“We’re happy,” Allred said.
The redevelopment plan also brings into question Los Alamitos Race Course and its future, as land around it keeps getting gobbled up for residential and retail uses.
The racetrack now is about 200 acres, down from its old 400.
“If the track ever closes, the land is so valuable,” Allred said. “If I didn’t love racing so much, I would close it soon.”
Allred, one of the largest quarter horse owners in the country, said he has no plans now to close the track.
But he has had initial talks with the city about the facility’s future.
“We have a conceptual master plan that does show potential development of new homes, some additional retail and public uses,” such as a large community park, the city’s Belmer said. “We aren’t doing anything to encourage the closure of the racetrack. But if it does close, we want to have a plan.”
Back at the Track
Los Alamitos Race Course is betting on Internet and phone wagering to help it stay alive.
Jeff True, general manager of the racetrack, said account wagering,people betting on races via the Internet or by phone,”has steadily grown” since Gov. Gray Davis OK’d it for California horseracing about two years ago.
Account wagering now accounts for about 10% of Los Alamitos’ $1.2 million in daily bets, according to True.
Betting at the track overall hasn’t grown, True said. But electronic wagering has helped offset losses, he said.
“The fervent belief and hope is that at some point the losses on-track will be widely overtaken by the expansion off-track,” True said.
Each day, Los Alamitos races are broadcast live for people in other states to bet on.
“It’s had a huge impact on Los Alamitos in terms of exposure,” True said.
There still are challenges.
Internet wagering only is legal in 13 states. And racing broadcasts aren’t available to everyone.
Los Alamitos could use the help.
Through the years, the track has seen its crowds dwindle from 17,000 per race in its heyday to about 5,000.
A big factor: Indian casinos are nabbing business.
“It’s tough for us,” said Edward C. Allred, owner of Los Alamitos Race Course.
Los Alamitos and other racetracks are exploring the prospect of installing slot machines to compete with casinos, Allred said.
Slots were added at Ruidoso Downs Race Track in New Mexico (where Allred is an investor) and “it saved our fannies,” he said.
“We have a lot of Indian competition next door, and we still do well,” Allred said. “It’s going to leave California racing high and dry without it.”
But getting slots isn’t easy and requires state approval. It likely would face local opposition.
“We tried once before to have a card room,” Allred said. “It got beat pretty soundly. It would not be a local option.”
Plus, there are other issues, including competition from card clubs.
Another: Los Alamitos’ horsemen find it tough to do business in California because of rising costs, such as workers’ compensation insurance premiums, True said.
“Our purses have increased a few percentage points over the past few years, but they haven’t kept pace with the overall cost of doing business in California,” he said.
But Los Alamitos has no plans to throw in the towel.
“We’re not in any imminent danger of closure,” True said. “Dr. Allred says we’re in for the long haul. We have to continue to be smart about our business.”
Los Alamitos has made some upgrades to its facilities.
They include opening a new sports bar, The Charger Bar, which is named after a horse Allred owned back in the 1960s. It’s also upgraded its broadcasting gear.
,Jennifer Bellantonio
