Settlement of the sale of Gisborne's century-old Makaraka Racecourse has saved the district's oldest sport and marks another change in what is believed to be the biggest residential development which will transform the township of Makaraka.
The deal is regarded as a win-win situation by Poverty Bay Turf Club president Tim Burke and Citrus Grove Investments Ltd owner David Meban.
The club can continue to use the course for at least the next 35 years and Makaraka can move ahead with the massive Citrus Grove development extending over 100 hectares.
"There is no doubt we would have gone down if we had not done this," said Mr Burke.
While racing has been popular in the past few years, the club has been losing money.
"Quite a few other racing clubs would be envious of us," he said.
The sale means the club has a 35-year lease which could be extended to 90 years.
There will be no development in the centre of the track so race patrons will have a full view of all races.
Mr Meban said the company was happy to be able to help the racing club and continue its major development.
The club would be charged only a peppercorn rental.
Citrus Grove Investments has bought the adjoining property on the western side of the racecourse.
"We are negotiating with two national retirement villages to develop a retirement village on site," he said.
The company's main push continues to be on Citrus Grove which will be developed in stages and will include sections and retail sectors.
Gisborne's first race meeting was held in 1870 on a property at Matawhero.
In racing's heyday there were five courses in the district , including East Coast tracks at Tolaga Bay and Te Araroa. There was a full circuit of race meetings.
Mr Burke believes the Poverty Bay Turf Club came to the Makaraka course in 1908.
