Five southern Delaware residents are teaming up with a deep-pocketed Pennsylvania-based businessman to transform a rusted hulk on Route 9 – former home of the Georgetown Raceway – into a 78-acre, half-mile harness-racing track and gambling venue: Georgetown Downs.

“We want to restore the Georgetown Raceway to its once prominent position within the Delaware harness-racing community,” said Glenn Mandalas, attorney for the project.

Dover-based Mandalas sits on the Georgetown Downs Board of Directors, along with legislative lobbyist and former Sussex County Administrator Joe Conaway of Georgetown, Dover-based attorney Constantine Malmberg and Ruby Schaeffer, wife of former Smryna Mayor Mark Schaeffer.

According to an application filed with the Delaware Harness Racing Commission, Michael Pouls of Philadelphia owns 68 percent of the shares. Pouls, the only out-of-state investor, is also a Laurel-area property holder. Other investors, who hold 10 percent or less of project shares, include Mandalas, Malmberg, Ruby and Mark Schaeffer, Kevin Baird of the Dover-based law firm Baird Mandalas and Dover businessman Frank Fantini.

“Our team is committed to harness racing first – that is our first focus. If we are issued a harness-racing license, we will build a grandstand,” said Mandalas.

Last year, sports betting was OK’d at the state’s three existing racinos under House Substitute 1 for House Bill 100. An amendment also required a report by the Video and Sports Lottery Study Commission to be submitted to legislators by Oct. 15 about the feasibility and profitability of adding new gambling venues in Delaware; state officials announced last week the report is delayed. In the end, the General Assembly must approve adding more venues before any new gambling venue can be built.

“We’re, of course, watching with interest what the committee will ultimately say in this report. We are hopeful there will be an allowance for a track in Sussex County. The timing is right and Sussex County doesn’t have a track,” said Mandalas.

In preparation, Georgetown Downs’ principals filed on Aug. 28, an application with the Delaware Harness Racing Commission.

Georgetown Downs’ principals and the application are now undergoing an administrative review that would be followed by a formal hearing. Mandalas said Georgetown Downs would like to begin in 2010, soon after Harrington Raceway finishes its racing schedule in early July. He also said Georgetown Downs could race six days a week until Harrington races begin again in August.

“The dates are something to work out with the Delaware Harness Racing Commission and the other tracks,” he said.

“The Delaware Harness Racing Commission has the authority to issue overlapping dates, but traditionally, they haven’t done that in the past. But, we’re looking forward to moving forward in this new environment,” he said.

Georgetown Downs would be open year-round, said Mandalas, and would bring permanent jobs to Sussex County. Mandalas said at this time it’s unclear how much money it would take to build Georgetown Downs or how many jobs it would create.

The project is proposed for a 78-acre parcel outside Georgetown. Track buildings, stables and parking would be built on 44 acres. Plans also call for a 15,000-square-foot restaurant, bar and clubhouse similar to an upscale sports bar.

The clubhouse would have at least four wagering kiosks and four manned betting placement windows, according to the application.

A glass wall would overlook the track and include a 4,000-square-foot off-track betting parlor. Georgetown Downs’ principals say they expect several hundred patrons during the week, with about 500 visitors over the weekend. Plans also call for an area for rodeos and an amphitheater. The facilities will be modeled after and designed with the assistance of Evangeline Downs, a harness-racing track in Louisiana.

“Evangeline Downs is a paradigm for modern racing – compact and efficient for today’s attendance expectations and operating budgets,” said Mandalas. “Georgetown Downs is also unique in that it will not require commercial-bank financing to implement. We are confident that with prompt approval, the track could be operational by summer of 2010.” “We’re really excited about rebirthing this old raceway and making something special in Sussex County,” he said.