Authority selects management team for racino

By Chelle Delaney: Quay County Sun

The Quay County Gaming Authority placed their bets on the Las Vegas management team of Navegante Group and the Friedmutter Inc.
Authority members voted to negotiate with the management team regarding eventual fees and the selection of a horsetrack management company.

The competing group, Whitesands, Inc., was equal in many respects, executive director Warren Frost said. The selected group, however, was not going to charge any costs for putting together the authority’s application, except for expenses. The authority expects to have its application together for a racetrack and casino by July 15.

Application preparation expenses are expected to be at least $80,000 to cover items such as a feasibility and other studies.
The authority also agreed to hire:

l the law firm of Greenberg Traurig out of Houston to assist in contracts and applications
l the financial consultant and investment banker, Michael Newman of Dallas-based First Southwest Co.
The authority was disappointed that neither applicants had provided a good racetrack management component.
“The racing license is key,” Frost said.

The selected group noted in their proposal that they would hire a racetrack management team.