Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, June 2, 1994 TAG: 9406020080
SECTION: VIRGINIA PAGE: B3 EDITION: METRO
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
But the report done for the Virginia Racing Commission said the need for road and utility improvements could slow the construction schedule.
``We see no fatal flaws that would prevent any of the applicants from completing the design and securing the requisite approvals for their facility,'' said the report by RUST Environment and Infrastructure Inc. of Glen Allen.
The report pointed out key concerns for each of the six applicants. Two propose to build on the same site in New Kent County and the rest are looking at sites in Virginia Beach, Portsmouth and Loudoun and Prince William counties.
The key concern for the Virginia Beach track is the water supply, the report said. The site is likely to get approval for wells in the interim but the long-term supply depends on the Lake Gaston pipeline, which has yet to be built.
The report found ``some potential problems'' with water supply and wastewater treatment for the Prince William site. It also cited uncertainty about how a proposed Disney theme park nearby would affect traffic.
At the Loudoun site, the report noted the need for highway improvements and some citizen opposition to the track. A second referendum on whether to allow the track is set for August.
The key concerns for the Portsmouth track are road improvements and the time needed to abolish existing buildings on the site. The track is proposed for a low-income residential neighborhood.
The New Kent site needs wastewater and road improvements for the track, the report said.
Another consultant's report released Wednesday showed the variations among the applicants in their estimates of attendance, costs and revenues.
The report by the New Jersey firm of Deloitte & Touche analyzed data submitted by the applicants but made no recommendation on which is the strongest.
The commission did not ask for the applicants to be ranked, said Donald R. Price, the commission's executive secretary.
``The ultimate decision lies with the commissioners and the commissioners wanted to be presented factual information that they could review and help them render a decision,'' he said.
The commission will conduct three days of hearings on the applications next week and plans to award a license by the fall.
The report found that the applicants generally project higher income and lower operating costs than tracks in other states.
``This may be explained by lower costs in Virginia, but is more likely attributable to the applicants' optimism,'' the report said.
The construction costs ranged from $21 million for the New Kent track proposed by Virginians, Inc., headed by Covington dentist Jeffrey Taylor, to nearly $46 million for the Portsmouth site eyed by Virginia Racing Associates. That partnership is headed by former state Sen. Elmon Gray and horse breeder William M. Camp Jr.
The Loudoun track planned by Maryland track owner Joe De Francis would have the highest total revenue at $52 million while Taylor's New Kent proposal projected the lowest at $26 million.
The Prince William track proposed by Middleburg businessman James J. Wilson would rely on debt financing for 99 percent of its costs while Taylor said estimated a debt of 52 percent of costs. De Francis estimated a debt of 91 percent on his Loudoun track while the other three had debt financing from 67 percent to 75 percent.
Only the Prince William track would offer live racing almost all year. The rest would have live races about 150 days a year. Simulcasting of races from out-of-state tracks would be offered at other times.
Seating capacity would vary from 3,460 at Taylor's track in New Kent to 9,500 for the New Kent proposal made by Toledo, Ohio, racetrack operator Arnold Stansley.
But Stansley projected the lowest annual attendance for live races - 501,760. The Prince William track expects the most annual visitors for live races - 946,600.
Either Northern Virginia site would face competition from tracks in West Virginia and Maryland, but also would have the largest population within a 50-mile radius, the report showed.
But if the population figures are adjusted to account for competition from nearby tracks, the six applicants are more even. The adjusted populations ranged from 1.2 million around the Prince William track to 1.6 million around the Portsmouth site.
The Northern Virginia sites still have an edge in disposable income of the nearby population even when the figures are adjusted to account for track competition from other states.
The highest disposable income was $27 million for the Loudoun track and the lowest was $21 million for the New Kent site.
by CNB