It would also enable clubs south of the Waitaki River to invest in tracks and facilities, Forbury Park Trotting Club chairman Lex Williams said.
The club would no longer have a home venue, but it remained keen to run events in Otago, particularly at Wingatui, he said.
Harness Racing New Zealand (HRNZ) announced yesterday an agreement had been reached between it and the club "after much discussion".
The last race was held at Forbury Park in July 2021 after the racing industry had deemed the St Kilda venue surplus to requirements.
A legal wrangle connected to a proposed housing development on part of the site was resolved in November last year and the Dunedin City Council bought the bulk of it, almost 12ha, in February this year.
About 0.5ha had been obtained last year by the Ministry of Education to give St Clair School more space.
Legislation from 2020 effectively turned HRNZ into the vendor, but it had to negotiate with the Forbury Park Trotting Club about use of venue sale proceeds.
Mr Williams said it had been "quite a journey".
"It has taken us a while to get to this point," he said.
"I am pleased it’s over.
"We worked hard to get a reasonable result for the club."
The council paid $13.2 million and the total value of sale proceeds from the full site was just over $14.4m, HRNZ said yesterday.
Two funds would be set up — one in the name of the club and a fund for the remainder of the sale proceeds.
Mr Williams said the amount ring-fenced for the club fund was about $1.5m and interest from it would provide income.
"The club is pleased to invest its share of the sale proceeds and will use the income generated for racing initiatives in the Otago region."
HRNZ chief executive Brad Steele said parties would make applications to use income from the larger fund.
