ARE.L Regulatory News (ARE)

1 Aug 2007 07:02

Arena Leisure PLC01 August 2007 ARENA LEISURE PLC Wolverhampton Racecourse - Planning Update Arena Leisure plc ('Arena'), the UK's largest operator of horseracing fixtures,is pleased to announce that Wolverhampton City Council ('the Council') hasresolved to grant planning permission for significant improvements toWolverhampton Racecourse. These improvements include an expansion of the hotelfrom 54 to 170-bedrooms, the construction of a new conference, exhibition andbanqueting suite, a new leisure facility including a swimming pool, and theincorporation of a casino within the Racecourse, thereby creating the UK's first'racino'. This decision by the Council is a significant and important step forward forArena in terms of its plans to maintain Wolverhampton Racecourse as an importantleisure facility. The integrated nature of the proposal, together with the jobsthat would be both safeguarded and indeed created, would make an expanded hoteland casino at Wolverhampton Racecourse a very exciting addition to the City. This planning application incorporates a fundamental redesign to overcome thereason for a previous proposal at the Racecourse having been refused by theSecretary of State in 2005 following a Call-In Inquiry; principally the impacton the openness of the Green Belt. The concept of the extension, the synergybetween the component parts and the benefits for the City of Wolverhampton werepreviously supported by the Local Planning Authority, the Call-In InquiryInspector and the Secretary of State. As a result of the Racecourse's Green Belt designation, the application will nowbe referred to the Government Office for the West Midlands ('GOWM'). Acting onbehalf of the Secretary of State, GOWM will decide whether to call theapplication in for consideration and determination by the Department ofCommunities and Local Government Minister, or leave the Council to determine theapplication. Arena is hopeful that GOWM will advise in the next month or twothat the Secretary of State does not wish to intervene, and that the Councilwill be able to issue full planning permission shortly thereafter. The development will cost an estimated £23 million and will generate up to 280additional jobs in total once fully operational. In January, the City of Wolverhampton was recommended as a location for a'small' casino by the Casino Advisory Panel. The Panel commented that: "if thecasino happens to end up at the racecourse it would add to its uniqueness andprovide an interesting and unusual social impact test". The Panel'srecommendations require the endorsement of Parliament and this has been delayedby the issues surrounding the 'regional' casino. Arena is nevertheless reassuredby the Secretary of State for Culture, Media and Sport's written statement inJuly 2007 that: "there was a clear consensus across all parties that the eightlarge and eight small casinos should be awarded to the authorities identified bythe Panel". Wolverhampton City Council has been asked to confirm its continueddesire to license a new casino and Arena is optimistic that this will beforthcoming and that Parliament will give its approval after the summer recess.Should the City's application be successful, it is hoped that WolverhamptonRacecourse will be chosen as the best site for the casino. Arena will update the market in due course. Mark Elliott, Chief Executive of Arena commented; "We are delighted that the Council has resolved to grant planning permission forthese significant improvements to Wolverhampton Racecourse. "The proposed expansion of facilities will play a crucial role in securing thelong-term future of Wolverhampton Racecourse and further enhance its status as aleading racing, conferencing and leisure destination for the West Midlandsregion. "This proposal has evolved considerably since the earlier scheme that wasrejected by the Secretary of State in 2005 and we believe that it has addressedthe cause of that refusal, whilst still providing all of the benefits previouslyacknowledged by the Secretary of State. We hope that the Council's decision willbe confirmed by the Secretary of State within the next few months." For further information please contact: Mark Elliott, Chief ExecutiveArena Leisure Plc Tel: 020-7495-2277 e-mail: contact@arenaleisureplc.com Olly Scott / Victoria GeogheganBell Pottinger Corporate & Financial Tel: 020-7861-3232 www.arenaleisureplc.com This information is provided by RNS The company news service from the London Stock Exchange