Herefordshire Council have offered the operators a new 'improved' 125 year lease on the racecourse.
Speaking to the BBC, council leader John Jarvis says the lease offer comes with the chance to build a 'four star business hotel' and conference centre:
"When you think Celtic Manor in the south, Chester in the north and nothing in-between. Go down the A49, not only haven't we got a bypass, we
haven't got a four-star business hotel. We need that and we need a
conference centre."
Jarvis also told the BBC that if the current operators, Arena Leisure and Northern Racing, confirmed their decision to pull out then another operator for the course would be sought. He also ruled out putting housing on the site.