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State Race Track Leasing Commission (Rtlc) Agenda

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State Race Track Leasing Commission (Rtlc) Agenda STATE RACE TRACK LEASING COMMISSION (RTLC) AGENDA March 30, 2021 11:00 A.M. Del Mar Fairgrounds Mission Tower via ZOOM 2260 Jimmy Durante Boulevard Del Mar, California 92014 As permitted by Executive Order N-25-20 (issued by Governor Newsom on March 12, 2020), the Del Mar Fairgrounds (DMF) will hold the State Race Track Leasing Commission Board Meeting on March 30, 2021 via ZOOM. If you wish to attend and participate in the meeting via teleconference, accommodations will be made. Please check the DMF website, www.delmarfairgrounds.com, later this week for updated information and instructions on how to participate in the meeting via ZOOM/teleconference. Items listed on this Agenda may be considered in any order, at the discretion of the chairperson. To view this agenda on the Internet, visit our 22nd DAA website: www.delmarfairgrounds.com PAGE 1. Roll Call 2 2. Public Comment 3. Approval of Minutes a. March 30, 2020 (Action) 3-4 4. Reports a. Del Mar Capital Improvement Account (Informational) 5-7 b. DMTC Operating Results for 2020 (Informational) 8-23 c. Racing Industry Update (Informational) VERBAL d. 2021 Summer Race Meet Dates – July 16 thru September 6 (Informational) 24-27 e. 2021 Fall Race Meet Dates – November 3 thru November 28 (Informational) VERBAL f. 2021 Breeders’ Cup Dates – November 5-6 (Informational) VERBAL 5. Recess to convene and hold the Race Track Authority meeting 6. Other Business 7. Adjournment 3/18/2020 1:59 PM ROLL CALL STATE RACE TRACK LEASING COMMISSION (RTLC) COMMISSIONERS & PARTICIPANTS Department of Finance (DOF) - Keely Bosler, Director; RTLC Chair Gayle Miller, Chief Deputy Director, Policy; Delegate Chair Department of General Services (DGS) Vacant, Director; RTLC Commissioner Jennifer Osborn, Acting Director for the Department of General Services, Delegate Department of Food and Agriculture (CDFA) – Karen Ross, Secretary; RTLC Commissioner Kevin Masuhara, Deputy Secretary Administration and Finance, Delegate 22nd District Agricultural Association (22nd DAA) Richard Valdez, RTLC Commissioner 22nd DAA Board President Lisa Barkett, RTLC Commissioner 22nd DAA Board Vice President Kathlyn Mead, RTLC Commissioner 22nd DAA Board Member Carlene Moore 22nd DAA CEO Office of the Attorney General California Josh Caplan, Deputy Attorney General OTHERS PRESENT Del Mar Thoroughbred Club Josh Rubinstein, President & COO Joe Harper, CEO Mike Ernst, Executive VP, CFO Page 2 STATE RACE TRACK LEASING COMMISSION MEETING Minutes - March 30, 2020 The State Race Track Leasing Commission (RTLC) met on March 30, 2020 via ZOOM/teleconference at the 22nd District Agricultural Association (22nd DAA) Board Room, 2260 Jimmy Durante Blvd., Del Mar, CA and the Department of General Services (DGS), 707 Third Street, 8th Floor Board Room., Sacramento, CA. 1. ROLL CALL RTLC Delegate Chair Gayle Miller called the meeting to order at 11:08 a.m. with a quorum present. Commissioners present in Sacramento Gayle Miller, Delegate Chair; Program Budget Manager the Dept. of Finance sitting in for Keely Bosler, Director, Dept. of Finance (via Zoom) Jim Martone, Delegate; Chief of the Asset Management Branch of the Real Estate Services Division for Dept. of General Services (via Zoom) Kevin Masuhara, Delegate; Deputy Secretary for Administration and Finance for Dept. of Food & Agriculture (via phone) Commissioners present in Del Mar Richard Valdez, President 22nd DAA Lisa Barkett, 22nd DAA Director (via phone) Kathlyn Mead, 22nd DAA Director (via ZOOM) Others present in Del Mar Josh Caplan, Deputy Attorney General (via phone) Timothy Fennell, 22nd DAA CEO Rita Walz, 22nd DAA CFO Carlene Moore, 22nd DAA Deputy General Manager Dustin Fuller, 22nd DAA Supervising Environmental Planner (via Zoom) Donna O’Leary, 22nd DAA Executive Assistant Josh Rubinstein, President Del Mar Thoroughbred Club (DMTC) Mike Ernst, CFO, DMTC (via phone) Chris Jaczko, DMTC Legal Counsel, DMTC (via phone) 2. PUBLIC COMMENT – No Public Comment 3. APPROVAL OF MINUTES – March 29, 2019 Commissioner Valdez moved to approve the March 29, 2019 Board meeting minutes. Commissioner Mead seconded. RTLC Delegate Chair Gayle Miller, Commissioners Martone, Masuhara, Valdez, Barkett, and Mead, were in favor and the motion carried. Page 3 4. REPORTS Del Mar Capital Improvement Account 22nd DAA CFO Rita Walz gave an update on the Del Mar Capital improvement account as of December 31, 2019, included in the Board packet on page six. Ms. Walz explained that the account is a pass through account used when DMTC makes their rent payment to the RTLC. It goes into the account and then right back out again. Racing Industry Update Josh Rubinstein, President and COO of the Del Mar Thoroughbred Club reported that COVID-19 is a top priority and they have been working with the Governor’s Office to make sure all of the mandated guidelines are followed. Currently, all of the state racetracks are closed to the public, but remain open so the horses can receive the care they need and the workers housing remains uninterrupted. Mr. Rubinstein is hopeful that there will be somewhat of a normalcy to the current situation but is working on a contingency plan and will continue to update the District of these plans. Mr. Rubinstein reported that for the second consecutive year Del Mar was ranked the safest racetrack in North America. In 2020, they will be adding a PET scan machine, which is nuclear 3D imaging. DMTC Operating Results for 2019 President and COO Josh Rubinstein referred to their report included on pages 7-29 of the Board packet. The 2019 racing season was a challenging year due to Santa Anita and Los Alamitos having to cancel 27 race days. Mr. Rubinstein said that due to the Ship & Win program instituted to incentivize horse owners and trainers to bring their out-of-state horses to California by providing bonuses, they were able to conduct the 36-day race meet without a cancellation. Mr. Rubinstein reviewed their 2020 budget as submitted to the 22nd DAA on January 31, 2020. He said they will adjust projections and reductions due to COVID-19 and applicable expenses based on marketing conditions for the 2020 summer and fall race meets. 2020 Summer Race Dates - July 18 through September 7 The summer meet runs for 36 days. 2020 Fall Race Dates – October 31 through November 29 The fall race meet runs for 15 days. The Breeders’ Cup, the super bowl of horseracing, will be held during the fall race meet at Keenland Race Course on November 6 and 7. The Breeders’ Cup is the second largest two-day wagering event of the year. 5. RECESS TO CONVENE AND HOLD THE RACE TRACK AUTHORITY MEETING The Commission recessed to the RTA meeting. 6. OTHER BUSINESS – NONE 7. ADJOURNMENT – The meeting adjourned at 12:04 p.m. Page 4 Item 4-a. STATE RACE TRACK LEASING COMMISSION DEL MAR CAPITAL IMPROVEMENT ACCOUNT December 31, 2020 Checking Balance $0 Local Agency Investment Fund $0 Total Cash and Cash Equivalents $0 Page 5 RTLC Item 4-a. Race Track Leasing Commission Statement of Operations For the Twelve Months Ending December 31, 2020 Unaudited 2020 2019 YTD Actual YTD Actual Variance (Unaudited) (Audited) Fav/(Unfav) Revenue DMTC Operating Agreement 700,000 390,000 310,000 Interest & Other 1 - 1 -------------------- -------------------- -------------------- Total Revenue 700,001 390,000 1,090,001 Expenses Operating Expenses - - Administration - - -------------------- -------------------- -------------------- Total Operating Expenses - - - Operating Transfers Pledge Revenue 700,000 390,000 (310,000) Addional Rent Projects 0 - - Funds transferred to RTA 157 - (157) -------------------- -------------------- -------------------- Total Operating Transfers 700,157 390,000 (310,157) Net Income $ (156) $ - $ (156) ============ ============ ============ Page 6 RTLC Item 4-a. Race Track Leasing Commission Balance Sheet For the Twelve Months Ending December 31, 2020 Audited 12/31/2020 12/31/2019 Assets Current Assets: Cash and Cash Equivalents $0 $152 Due from other funds 700,000 335,000 Total Assets 700,000 335,152 ============ ============ Liabilities Current Liabilities: Due to RTA 700,000 335,000 Fund Equity Current Year Income/(Loss) - - Retained Earnings 0 152 Total Fund Equity 152 Total Liabilites and Equity $ 700,000 $ 335,152 ============ ============ Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 3/18/2021 Del Mar Looking Forward to Fans Returning Del Mar Thoroughbred Club Tuesday, March 16th, 2021 ( 2 days ago ) Return to All News Del Mar Looking Forward to Fans Returning Summer Meet To Open Friday, July 16 With improving trends in public health data, growth in vaccination rates and the gradual relaxation of limits on attendance at sporting and performance venues in the state, Del Mar Thoroughbred Club officials are looking forward to a return of fans to the seaside track when it opens for its 82nd summer season on Friday, July 16, track officials said today. Track personnel are planning for spectators on site when the racetrack kicks off a 31-day season that will feature 34 major stakes, a substantial increase in purses and a return to the sun and fun vibe that has been part of its culture since it first opened its gates in 1937. https://www.dmtc.com/media/news/del-mar-looking-forward-to-fans-returning-1790 Page 24 1/2 3/18/2021 Del Mar Looking Forward to Fans Returning “We will continue to follow the guidance of local health officials and our medical advisors, but based on what has been announced for other local attractions such as the San Diego Padres and SeaWorld, we are optimistic we will have fans in the stands this summer at some level,” said Del Mar president and COO Josh Rubinstein. “We have the advantages of a 350-acre site and a facility that can host people quite comfortably with appropriate social distancing as needed.” With its traditional opening day feature – the Runhappy Oceanside Stakes – topping the bill, the Friday, July 16 kickoff will initiate a Friday-Saturday-Sunday beginning to the first two weeks of the season.
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