The Town of Hanover is playing a much bigger role in the Hanover Raceway Banquet Hall project than originally anticipated.
In fact, Hanover has seven million reasons to hope the Banquet Hall project is a complete success.
After originally agreeing to guarantee three million dollars of the Raceways loan, the town has now consented to backing the total seven million dollar loan.
Raceway General Manager Gord Dougan says this will save the Raceway almost a million and a half dollars in financing costs.
Because the Raceway leases the land from Hanover, is doesnt have any collateral to use against the loan resulting in higher interests rates.
Hanovers backing of the project will allow the Raceway to secure a much better lending rate.
Dougan says there is no need for Hanover to lose any sleep over the matter, saying he is very confident they will meet their financing goals.
He says the Raceway has budgeted for the project and has contingency funds set aside. (3.5 million in GIC’s)
Construction is set for September for Phase One of the 12 million dollar project.
The first phase will total 9.2 million dollars, it includes the construction of a 600 seat Banquet Hall and private dining area.
Phase II which wont get underway for another year or two involves renovating the grand stands, and constructing a new restaurant, simulcast room and betting area.
