Prime Inc.'s Robert Low has Derby Fever

Low, who owns trucking company Prime Inc., has owned about 150 horses since 1995, several of which have raced.

Steppenwolfer, however, is special. He has a legitimate shot at making the field for the Kentucky Derby, the first leg of America’s horse racing triple crown and “The Greatest Two Minutes in Sports.”

“It’s this thing they call ‘derby fever,’” Low joked. “It’s not a matter of life and death. It’s more important than that.”

To earn a spot in the hallowed race at Churchill Downs, Steppenwolfer must first have a strong showing in the 70th running of the Arkansas Derby, April 15 at Oaklawn Park in Hot Springs, Ark.

That may just happen. Steppenwolfer has garnered national attention, and three of five early handicappers on the Kentucky Derby’s Web site have pegged Steppenwolfer to make the Kentucky Derby field.

Just to make the field for the Arkansas Derby, Steppenwolfer had to beat out 115 other horses. He earned his spot based on his season racing record: two wins, one place and two shows in five starts.

Low said the top few horses from each of the major prep races usually make the Kentucky Derby, which boasts a field of around 20 horses, determined mostly by season earnings.

Steppenwolfer has won $30,000 so far this season, but Low and his racing team could pocket $600,000 with a win at the Arkansas Derby, which has a $1 million purse. Finishing second would land them $200,000 and finishing third would earn $100,000.

“Right now the colt’s doing great,” said trainer Dan Peitz. “I would say there’s a pretty good chance we will be first or second.”

It won’t be easy, though.

The Arkansas Derby is the biggest race that Steppenwolfer – or any other horse that Low has ever owned – has raced in. Of 46 Kentucky Derby prep races, it’s one of three only with a purse as high as $1 million.

“The Arkansas Derby is a very prestigious race,” Low said.

In Arkansas, Steppenwolfer will contend with Lawyer Ron, who along with Brother Derek is one of the early favorites to win the Kentucky Derby.

The last two Arkansas Derby winners – Smarty Jones and Afleet Alex – went on to win four of the last six Triple Crown races. Smarty Jones won the 2004 Kentucky Derby.

Running an empire

Low started breeding and racing horses for fun.

But owning a nearly $600 million trucking company and a slew of other businesses has allowed him to afford it. Steppenwolfer alone cost $375,000 at a public auction a year ago.

Low’s bread and butter is Prime, 2740 N. Mayfair Ave., which ships mostly food and pharmaceutical products.

Prime, which turns 36 this year, employs about 3,700 drivers and accounts for about 80 percent of Low’s wealth.

Revenues continue to grow at about a 12 percent clip, and Low said he’s finalizing details on an acquisition of an out-of-state motor carrier.

Prime has offices in Florida, Oregon, Oklahoma, Utah, California and Colorado and serves all 48 contiguous states, plus Canada and Mexico.

“This is what makes everything else possible,” he said.

“Everything else” includes Oasis Inn & Convention Center in Springfield; Palace Casino Resort in Biloxi, Miss.; Prime Floral LLC; and a burgeoning truck wash business.

Fire and Ice … and category-4 winds

Oasis Inn, 2550 N. Glenstone Ave., is already operational and in the third and final phase of renovations.

Low said the $10 million project has faced a few bumps, ballooning to $12 million and taking nearly 10 months longer than originally planned. It’s slated for completion June 1.

“When you’re remodeling an old building, you get into a lot of unknowns,” he said of the 40-year-old complex, formerly a Howard Johnson property.

But, he said, when it’s done it should rival any other hotel and convention space in town. He said the Fire and Ice restaurant and bar – named for its open-air kitchen and bar topped with a 12-inch sheet of ice – and unique secured parking would help the complex succeed.

Occupancy rates are 35 percent now, but Low projects they’ll be above 70 percent once construction finishes.

Another hotel Low owns under his Campus Inc. division is the $100 million Palace Casino Resort, which sits along the Gulf Coast.

During Hurricane Katrina in September, the resort’s water-based casino portion was totaled while the land-based hotel was only superficially damaged. Total damages were $65 million.

The Mississippi Legislature has since approved land-based gaming for coastal casinos. As a result, the Palace reopened Dec. 30 with 26,000 square feet of temporary gambling space in the hotel’s lobby and ballroom.

Reduced gambling capacity – just three of 12 casinos in the area have reopened – coupled with an influx of money from Federal Emergency Management Agency relief efforts has led to booming success for the Palace, which has been generating $2.5 million in weekly revenues, double its pre-storm “win.”

“(Southerners) like to gamble and eat and drink, and we accommodate them,” Low said.

Palace General Manager Keith Crosby said the reconstruction went flawlessly, thanks greatly to Low’s quick response to the damage.

“In typical Robert fashion, (he) bowed right up and said, ‘Let’s get after it,’” Crosby said.

Low said gambling competition would start coming back this summer, so he and his team couldn’t afford to sit on their laurels.

He said they’re planning a new 125,000-square-foot, land-based casino next to the hotel, with groundbreaking on a 6,000-square-foot starter space later this month. Low said they’re trying to acquire additional land and are reviewing several expansion plans. The new casino, with a yet-to-be-determined price tag, is slated for completion in about three years.

Sunflowers and suds

Low got into the floral assembly and distribution business in February 2004 with Prime Floral. The division generates about $15 million a year and operates facilities in Florida, Oregon and California.

He’s also testing the truck-washing waters with a facility he purchased for $1.2 million in Savannah, Ga., last summer.

Low built a $4 million truck wash on Springfield’s Prime campus in January and invested $900,000 to build a food-grade tanker washout at his Savannah truck wash that he uses for his tanker fleet.

Low said he would like to build more truck washes eventually, but no plans are set.

“It’s a model that’s kind of evolving for us,” he said. “Our strategy is to walk before we run.”

Steppenwolfer File

Age: 3

Gender: Male

Home state: Kentucky

Career record: Three wins, one place and two shows in seven starts

Earnings: $161,520

How he got his name: Mother’s name was Wolfer. Because Low is a “product of the 60s” the colt was named in honor of rock group Steppenwolf.

Arkansas Derby

When: April 15, post time undetermined (but probably 4 or 5 p.m.)

Where: Oaklawn Park, Hot Springs, Ark. (5 hours from Springfield)

Tickets: $2 at the gate

TV: ABC affiliate KSPR