ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Tuesday, January 14, 1997 TAG: 9701140059
SECTION: VIRGINIA PAGE: C1 EDITION: NEW RIVER VALLEY
DATELINE: RICHMOND
SOURCE: ASSOCIATED PRESS
MEMO: shorter version ran in the Metro edition.
But the request for an off-track betting parlor in Hampton was put on hold. The word is out that the push by colonial downs has made some lawmakers uneasy.
The Virginia Racing Commission on Monday approved Colonial Downs' plan to sell up to $35 million in stock to help finance its $62 million track under construction in New Kent County.
But it delayed a decision on Colonial Downs' plans for an off-track betting parlor in Hampton.
The racing group wants to sell up to 4.4 million shares of Class A stock to the public to cover construction costs and pay off loans made by Colonial Downs' three main investors - company chairman Jeffrey Jacobs, Arnold Stansley and James Leadbetter.
James Weinburg, Colonial Downs' legal counsel, said the stock offering will be made in the next two weeks after Securities and Exchange Commission approval. No single individual will be allowed to buy 5 percent or more of Class A stock.
The owners will retain 3 million shares of Class B stock, which generally is not transferrable, except to family members.
The Class B shares give the owners five ``votes'' per share - Class A shares are equal to one vote each - to give the three primary investors management control.
Weinburg said underwriters also will allow for the issuance of preferred stock, but only in extreme circumstances, such as to raise capital on an emergency basis or to thwart a takeover attempt.
The commission said it needed another month to consider Colonial Downs' request to build the $3.3million Hampton betting parlor, which would accommodate 600 people.
Off-track betting parlors allow patrons to wager on live races at major horse tracks throughout the country.
Weinburg said the racing group probably will ask for a fourth license to build a betting parlor in Brunswick County before its thoroughbred and harness course opens this summer.
Commissioner Arthur W. Arundel cautioned Colonial Downs that its aggressive campaign to build up to six off-site betting shops has made some lawmakers uneasy.
Arundel suggested Colonial Downs delay the opening of the Hampton parlor until the track opens. There has been growing speculation that the New Kent County racetrack won't open on time.
``They've got to proceed with grading and awarding of some of those contracts or their ability to make the completion date is in jeopardy,'' said Daniel Shockey, a commission consultant on construction matters.
Weinburg told the commission that delays in specific phases of construction were within the construction timetable. Legislation passed during the last session mandates that the state's first pari-mutuel track open by July 1 or lose its licenses for off-track betting parlors.
But Weinburg acknowledged that Jacobs had sent a letter to the General Assembly asking that the opening deadline be pushed back to Sept. 1 without risking the betting parlor licenses.
LENGTH: Medium: 66 lines KEYWORDS: HORSE RACINGby CNB