Developers jockeying for Hollywood park.

And they're off!

Some of the largest developers and investors in L.A. County are racing alongside national entrants to purchase 240-acre Hollywood Park in Inglewood from Churchill Downs Inc.

The dozen or so developers who submitted bids last week are waiting for Churchill Downs executives and the company's investment bank, Lazard Freres & Co., to winnow the list to the top five candidates. A decision is expected within the next few weeks--possibly sooner--said sources close to the deal.

Churchill Downs executives didn't turn their attention to the bidding process until after their Kentucky Derby horserace was run May 7, sources said. Now that it's over, officials are expected to refocus on selling the track.

The level of interest in the site is immense because it presents a rare opportunity to develop a large tract in central Los Angeles County. Bids are said to have ranged from $150 million to more than $200 million.

"Everybody threw their hat in," said one bidder. "How many times do you get the opportunity to acquire nearly 240 acres of urban infill in Los Angeles?"

A copy of Lazard's confidential Hollywood Park sales book obtained by the Business Journal doesn't list an asking price, but the bids are considered by some as being on the low-side. That may reflect the difficulty in gauging what can be built on the site.

"You're bidding in the dark on what you'll be able to build on the land," one bidder said. "You have to make sure you're not over-paying and that you'll be afforded enough entitlements to justify the price."

The list of bidders is dominated by homebuilders. Orange County-based tract home developers Standard Pacific Corp., Suncal Cos. and John Laing Homes each submitted bids. So did L.A.-based KB Home and Miami-based Lennar Corp., which one source pegged as a front-runner.

A number of well-heeled developers also put in competitive bids and a likely front-runner from this group will be a team led by the Canyon Johnson Urban Fund.

The Beverly Hills-based firm, which includes former Lakers star Earvin "Magic" Johnson, has teamed with Forest City West, a subsidiary of Cleveland-based Forest City Enterprises Inc., and publicly-traded Vornado Realty Trust. Paramus, N.J.-based Vornado teamed up two months ago with Bain Capital LLC and Kohlberg Kravis Roberts & Co. as equal partners in the $6.6 billion acquisition of Toys "R" Us.

Sources said another key contender is developer J.H. Snyder Co. LLC which has partnered with Credit Suisse First Boston. Los Angeles-based Snyder has $1.5 billion worth of California projects underway, including master-planning a new downtown center in Ontario.

Beverly Hills-based apartment mogul Alan Casden also expressed interest, and Rothbart Development Corp. aligned itself with local developer and financier Richard Weintraub to submit a bid. Last year, Rothbart Development bought a 60-acre parcel on the edge of Hollywood Park to build a shopping center anchored by a Wal-Mart Stores Inc. supercenter.

Former Housing and Urban Development Secretary Henry Cisneros bid on the project through his American City Vista firm, which was set up specifically to build and finance California infill housing. Lewis Operating Cos., an Inland Empire developer and owner of shopping centers, also is said to have bid.

Louisville, Ky.-based Churchill Downs bought the property in 1999 for $140 million. but attendance at the track has been declining for years.

Churchill Downs spokeswoman Julie Konig said the company wouldn't comment on the potential sale. But last week on a conference call, Churchill Downs Chief Executive Tom Meeker reiterated earlier comments about the company evaluating its options.

After the list of possible buyers is slimmed to a final group, the contenders will meet with Inglewood elected officials to discuss their proposals for the site, said Inglewood City Councilman Ralph Franklin, whose district includes the racetrack.

Several bidders said Churchill Downs and Lazard executives have asked them to not discuss their proposals with Inglewood officials until the list of competing bids is slimmed down.

Franklin and Mayor Roosevelt Dorn have previously said that the city would like to have a convention center that would be about two-thirds the size of the one in downtown Los Angeles and an adjacent four- or five-star hotel. They would also like a large retail development with upscale shops and restaurants, office buildings and housing--both market-rate and affordable homes.

Crowded Field

Partial list of bidders on Hollywood Park
racetrack in Inglewood.

Company                              Headquarters

American City Vista                  San Antonio
Canyon Johnson Urban Fund/           Beverly Hills/
Forest City Enterprises/             Cleveland/
Vornado Realty Trust                 Paramus, N.J.
Casden Co. Beverly Hills             Beverly Hills
Lennar Corp.                         Miami
J.H. Snyder & Co./                   Los Angeles/
Credit Suisse First Boston           New York
John Laing Homes                     Newport Beach
KB Home                              Los Angeles
Lewis Operating Cos.                 Upland
Rothbart Development Corp./          Los Angeles/
Weintraub Financial Services Inc.    Malibu
Standard Pacific Corp.               Irvine
Suncal Cos.                          Irvine

ANDY FIXMER Staff Reporter