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

DATE: Thursday, November 10, 1994            TAG: 9411100616
SECTION: LOCAL                    PAGE: B5   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   54 lines

RACE TRACK LICENSEE DEFENDS HIS FINANCING A REJECTED APPLICANT QUESTIONED THE WINNER'S FUNDING.

An Ohio track operator who was awarded a contract to build Virginia's first pari-mutuel race track defended himself Wednesday against allegations that he lacks the needed capital.

Arnold Stansley, head of Stansley Management and president of Raceway Park in Toledo, appeared before the Virginia Racing Commission to dispute a letter written Tuesday by R. Brian Ball, lawyer for Virginia Racing Associates.

The commission last month selected Stansley's bid for Virginia's sole horse-racing track license over applications from four other organizations, including Virginia Racing Associates.

Ball alleged that inconsistencies in Stansley Management's financial reports indicate it has less than 100 percent committed equity.

``We have some serious concerns about this project,'' Ball said.

Stansley said construction of a $40 million, 6,000-seat track in New Kent County - to be named Colonial Downs - is moving ahead as planned. He agreed to produce a detailed finance report at the commission's Dec. 14 meeting.

``I saw that there was some serious concern,'' Stansley said after the meeting. ``We'll take care of that, and everyone will be well satisfied.''

Stansley did not discuss the specifics of the letter but said all of its allegations are false.

Also Wednesday, Ball asked the commission members to set a deadline for a second round of racetrack applications. ``It would help bring out interested parties if they knew the commission was open to a second round of applicants,'' he said.

Commission chairman John Shenefield said state law requires the commission to consider any application, but ``none would get a second look'' until Colonial Downs is in operation.

Meanwhile, lawyers for another spurned applicant said they plan to file a lawsuit this week in Richmond Circuit Court appealing the commission's decision.

Greg TenEyck, spokesman for the Jockey Club in Prince William County, said the commission falsely cited community opposition as a reason to reject the group's bid.

TenEyck said a referendum Tuesday on the issue - in which 65 percent of Prince William voters said they supported the idea of a pari-mutuel betting - ``really shoots down'' the commission's reasoning. ILLUSTRATION: Photo

Stansley

by CNB