A planning tribunal report recommending the approval in principle of a rezoning application said the intention was "to provide an economically viable model that sustains continuation of the racing industry".
The site is in the southwestern corner of the 95ha racecourse, bordered by Rosmead Avenue and Wetton Road.
Phumelela Gaming, which manages the course on behalf of its owner, Kenilworth Racing, did not respond to requests for comment.
Detailed designs for the proposed buildings have not yet been done but, according to documents filed in support of the rezoning application, the proposed development will include:
There will also be two new roads: Royal Kenilworth Avenue and Metropolitan Avenue.
"The proposed redevelopment will revitalise the existing racing facilities that will be retained, and will create a functional, attractive edge to Rosmead Avenue," said a report to councillors. "The additional development... will result in a greater pool of levies available for the maintenance of the biodiversity area."
A 52ha conservation area in the middle of the racecourse is regarded as the best example of Cape Flats sand fynbos on the Cape Peninsula. It has 16 seasonal wetlands, 310 plant species and nine amphibians resident, including the critically endangered micro frog and Cape platanna.
Objectors called for a ban on further "one-off music events". The applicants responded: "With the proposed development reliance on these events [for] income will no longer be necessary."
Kenilworth, established in 1881, is the country's oldest racecourse. It has three tracks: an "old" course 2,700m in circumference with a 450m run-in; a "new" course of 2,800m with a 600m run-in; and a 1,200m straight.
Approval of the development by the full council is needed.
Source: The Times
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