The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Sunday, October 16, 1994               TAG: 9410150092
SECTION: VIRGINIA BEACH BEACON    PAGE: 13   EDITION: FINAL 
TYPE: Cover Story 
                                             LENGTH: Long  :  118 lines

THE QUESTIONS BEGIN: WHY? WHY? WHY NOT US?

Thomas H. Meeker, president of Churchill Downs, was clearly disappointed and maybe a little wounded Wednesday, after the Virginia Racing Commission decided to award the state's only racetrack to his competitors in New Kent County. Meeker, whose Louisville track is home to the Kentucky Derby, had hoped to build Princess Anne Downs, a $54 million facility, in Virginia Beach.

In a series of interviews and speeches Wednesday, Meeker said he still thinks a track in Virginia Beach would be more successful than one outside of Richmond. He also answered many of the criticisms the racing commission had raised about his track proposal and his choice of a site in Virginia Beach.

Here are a few of the topics he tackled:

The commission's decision to pick a site in New Kent County instead of Virginia Beach or Portsmouth:

``Through the course of the announcement there were a couple of things that sort of struck me: One, there was a very strong sentiment expressed by (Commissioners Ernest M.) Oare and Arthur W. Arundel to have the thing located in Northern Virginia. . . . For whatever reason they couldn't come to closure on Mr. Wilson's proposal (for Prince William County) and that left them with New Kent as the most proximate site.

``The other thing that kind of came to the front was, there wasn't a very strong sentiment to bring the thing into the Tidewater area.''

The commission's complaint that Virginia Beach is too far from horse country in Northern Virginia:

``It's clear that this commission wants to get as close as they can to the horses. We disagree with that,'' Meeker said. ``I think it's more important to have a fan base and support from the patrons than from the horsemen. The horsemen will come.

``Our philosophy is we needed to get to the major population centers and we needed to find a nexus with another industry that would afford us a better possibility of success - and that industry was tourism.''

The commission's suggestion that Colonial Downs will be up and running faster than Princess Anne Downs would have been:

``I think our experience has shown that we can do what we say we can do (fast and under budget).''

The commission's complaint that Meeker's business plan placed too much emphasis on simulcasting races from other parts of the country.

``Apparently, what they thought was important was that they wanted to concentrate on live racing. . . Sixty percent of (the horse racing) business last year was simulcast. . . I think even the staunchest opponents of simulcast have fallen by the wayside because they see the impact it can have on purses and the quality of horses.''

The commission's praise for the New Kent proposal and the management capabilities of horse track owner Arnold Stansley:

``I was a little nonplussed when there was no favorable finding whatsoever about our management and they went on about management of the New Kent folks. Obviously, we did not impress the commission for whatever reason.''

The commission's response to Stansley's cooperation with Maryland race track owner Joseph DeFrancis:

``Joe (DeFrancis) has had problems over the last several years. . . . I think things are turning around and hopefully they will, but it's going to be a delicate balance trying to get this thing off the ground while you're trying to solve problems (at home).''

The commission's rationale for picking Colonial Downs over Princess Anne Downs:

``What we've got is a situation that our business plan and philosophy of growth was inconsistent with what the commission wanted, which was a quick construction schedule with a large number of thoroughbred days - and that may work. Our analysis would tell us it won't, but that doesn't make the commission wrong, that may make the commission smarter than we are.''

His choice of Virginia Beach as the site of his proposed track:

``When we came to Virginia Beach, a couple of things became clear to us. Number one, the site was correct. But more important than that, the environment here for the business community is by far the best that I have ever seen. I mean, you can come into this community and access your political system, your political leaders, your economic development people, and at every turn, you're going to get a positive response. And a response not couched in delay, or couched in problems or couched in all sorts of hoop jumping. It's a response that, `we're going (to get it) done,' and two seconds later, it's done. And that's the response that we've had throughout this process here, and that's what convinced me early on, when we were deliberating as to what community to hook our wagon to, to go through this process (in Virginia Beach).

``I continue to believe that Virginia Beach was the correct site for this thing. It has in my view the best chance for success.''

Churchill Downs' future in Virginia Beach:

``If we could figure out a way to do some sort of thing here, I mean, within our industry, we'd be here in a heartbeat. I just think this a wonderful community.''

His advice for Beach residents:

``I would encourage the community not to get too upset about this. They have a lot of things to be proud of. And they have a lot of things about this project to be proud of. . . . They can be proud of their political leadership, and the leadership in general here in the community. Something big's going to happen in this community. I don't know what it is, but something big is going to happen.'' MEMO: Compiled by staff writer Karen Weintraub and correspondent Greg

Goldfarb.

ILLUSTRATION: Staff photo by PAUL AIKEN

Mayor Meyera Oberndorf and Thomas Meeker, president of Churchill

Downs, enjoy a moment before the decision.

KEYWORDS: HORSE RACING

by CNB