Race tracks could form partnership

Suffolk Downs and Wonderland in talks

Suffolk Downs and Wonderland Greyhound Park race track could become partners within days in a deal that has been hammered out under intense negotiations over the past month, according to several people briefed on the negotiations.

The two sides have been close to signing a deal several times over the last two years, though these talks are said to be much closer than they have been before.

"The deal could close any day," said one person directly involved in the negotiations. "Everyone wants it." A second person said the deal could come as soon as Monday. All parties talked on the condition of anonymity because of the fragile state of negotiations.

Still unclear, even to the parties involved, is whether Wonderland, which is financially struggling, would remain open or be shuttered if a deal is struck. One person familiar with the discussions said Wonderland might remain open in the short term until a decision is made by state officials about granting slot machine licenses to race tracks. If that bid fails, the property could well be converted into a commercial or residential development, that person said.

By joining forces, the tracks would gain significant economic benefits they lack as separate entities. Wonderland would gain the greater financial strength of its East Boston counterpart, while Suffolk would gain access to potentially lucrative development opportunities in Revere.

Any partnership would probably continue to involve horseracing at Suffolk Downs.

Combining the two tracks could also make a clearer case for a casino license in Greater Boston, if Governor Deval Patrick decides in January to refile his legislation to license three casinos in Massachusetts. The two tracks, located just 2 miles from one another, positioning themselves for the same casino license was a constant distraction during the debate and contributed to the proposal's defeat in March, according to proponents. Track owners have exchanged documents outlining the terms they would agree to and spelling out areas that need negotiating.

Still, several issues are outstanding, especially the ownership structure of the new partnership. Discussions over a partnership between the principal owners at the two tracks - Charles Sarkis at Wonderland and Richard Fields at Suffolk Downs - have been ongoing for nearly two years but issues have come up each time to halt the discussions.

Last November the two men agreed on terms before other Suffolk officials opted out because they thought the agreement was too generous to Sarkis.

Previous discussions have involved bringing Sarkis into a casino development at Suffolk, while tearing down the Wonderland track and redeveloping that site as a hotel or something unrelated to the casino. This scenario would have eliminated dog racing.

Sarkis and Fields both declined to comment yesterday. Joseph J. O'Donnell, one of the owners of Suffolk Downs, did not return phone calls.

Suffolk Downs was seen as the leading contender for a Boston-area casino, with a politically connected ownership group and a large tract of land within minutes to Logan International Airport. Wonderland has a much smaller plot of land - 36 acres at Wonderland compared with 163 acres at Suffolk - and Suffolk also has an aggressive lobbying team and support from Boston Mayor Thomas M. Menino.

But Wonderland was a pesky second option, and owners held casino partnership discussions with a wide number of investors, including Donald Trump, Foxwoods, Mohegan Sun, and the Aquinnah Wampanoag tribe of Martha's Vineyard. In the end, the track did not strongly support the casino legislation and put its weight instead behind an ill-fated plan to provide slot machines at the state's four race tracks.

Several legislators, as well as Menino, have suggested one upside to an agreement is that it would allow the owners at the two tracks to focus on the bill's passage instead of on battling one another.

"If this happens, it's a tremendous . . . help in the casino debate," said Representative Martin Walsh, a Dorchester Democrat who was one of the chief advocates for licensing casinos.

Dog racing in Massachusetts faces an uncertain future, with a ballot question in November proposing to ban the business.

The track has also run into financial problems. Last week, Wonderland owners expressed regret over a two-year, $789,293 tax delinquency that triggered foreclosure proceedings and took to arranging a payment plan.

Until both sides agree to a payment plan, the city will continue foreclosing and consider revoking liquor, restaurant, and parking licenses.

Andrea Estes of the Globe staff contributed to this report. Matt Viser can be reached at maviser@globe.com. Casey Ross can be reached at cross@globe.com.