Canterbury Park Holding Corporation reported today that, pursuant to a Letter of Intent announced November 25, 2014, Kraus-Anderson Incorporated has notified the Company that they have successfully completed extensive due diligence regarding the feasibility of a proposed mixed-use complex adjacent to the racetrack and are prepared to move forward with the next phase of the development process. The parties will now proceed to negotiate the terms of a formal Development Agreement that would guide financing and construction of the proposed project. The process of negotiating the formal agreement is expected to take three months or more to complete. The mixed-use complex that is contemplated by Canterbury Park and Kraus-Anderson would be built on Canterbury's excess and underutilized land with the goal to create year-round synergies to its racetrack and card casino, as well as nearby entertainment venues, while serving the needs of the community and region. The components of the project could include destination and local retail shops, restaurants, entertainment, sports venues, multi-family housing, and other compatible uses. "Canterbury's vision of a destination lifestyle retail and entertainment center on our property is one step closer. While there is still much work ahead of us to make this a reality, I am very encouraged by the results of the due diligence performed by Kraus-Anderson, a proven development company that has considerable experience with similar mixed-use projects," said Canterbury Park President and CEO, Randy Sampson. Mike Korsh, Vice President and Director of Real Estate Development for Kraus-Anderson Realty, commented: "Kraus-Anderson is pleased with the results of its due diligence regarding the commercial feasibility of a dynamic and multi-faceted mixed-use development at Canterbury Park. We are also excited about the energy this proposed development has created, and the positive reception we have received from the community as well as potential tenants and mixed-used development partners."
About Canterbury Park:Canterbury Park Holding Corporation (NASDAQ:CPHC) owns and operates Canterbury Park Racetrack and Card Casino, Minnesota's only thoroughbred and quarter horse racing facility. The Company's 70-day 2015 live race meet will run from May 15 to September 12. Canterbury Park's Card Casino hosts card games 24 hours a day, seven days a week, offering both poker and table games. In addition, the Company conducts year-round wagering on simulcast horse racing and hosts a variety of other entertainment and special events at its facility in Shakopee, Minn. For more information about the Company, please visit us at www.canterburypark.com.About Kraus-Anderson:Kraus-Anderson has transformed the American landscape for more than a century. Established in 1897, Kraus-Anderson provides strategic services including commercial real estate development and management, construction, equipment financing and risk management to clients nationwide. Kraus-Anderson ( www.krausanderson.com) is an EOE AA M/F/Vet/Disability Employer. Cautionary Statement:The commencement of negotiations regarding a formal Development Agreement announced today may not result in a comprehensive development plan and signing of a binding Development Agreement between the parties. Also, if the parties enter into a Development Agreement, there can be no assurance that a mixed-use center will be constructed or that it will operate successfully. Finally, from time to time, in press releases and in other communications to shareholders or the investing public, the Canterbury Park Holding Corporation may make forward-looking statements concerning possible or anticipated future financial performance, business activities or plans based on management's beliefs and assumptions. These forward looking statements are typically preceded by the words such as "believes," "expects," "anticipates," "intends" or similar expressions. Shareholders and the investing public should understand that these forward-looking statements are subject to risks and uncertainties, including those disclosed in our periodic filings with the Securities and Exchange Commission, which could cause actual performance, activities or plans after the date the statements are made to differ significantly from those indicated in the forward-looking statements when made.