Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, May 9, 1995                   TAG: 9505090121
SECTION: VIRGINIA                    PAGE: A-8   EDITION: METRO 
SOURCE: Associated Press
DATELINE: RICHMOND                                LENGTH: Medium

RULING ON HORSE TRACK IS DELAYED

Circuit Judge Randall G. Johnson appeared at times impatient with the slow pace of the arguments offered by lawyers for Colonial Downs and the Virginia Jockey Club, which brought the appeal.

At issue is whether the Virginia Racing Commission, which awarded the licensing rights to groups headed by Ohio harness track owner Arnold Stansley, violated its own guidelines and ignored conditions of application.

Stansley Racing Corp., which now holds the operator's license, did not exist at the time of the award. Incorporation, according to Virginia Jockey Club lawyer Lawrence H. Framme III, was a condition of application.

``You can't apply if you don't exist,'' Framme said. ``The license to own a racetrack was granted to an entity. Colonial Downs was not eligible.''

Colonial Downs' representatives contend their intentions to incorporate at a later time were made clear throughout their application process.

Steven D. Gravely, lawyer for Colonial Downs, said flaws the Jockey Club has found in the process don't detract from the facts.

``I'm sure the Jockey Club was profoundly disappointed that they didn't get the license,'' he said. ``I think the particular errors that have come to the forefront through the briefing and oral argument are frivolous.''

Gravely said precedent also is on his client's side.

``Under Virginia law, the cases are clear that agencies make their decisions on the whole record, not just one little piece of it,'' he said.

Framme also said Stansley Racing Corp. is ineligible to own the track because it never applied. Under the strictest interpretation of the language of the law, he said, qualifications for application and award differ.