THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, June 28, 1995 TAG: 9506280491
SECTION: LOCAL PAGE: B3 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: NEW KENT LENGTH: Medium: 62 lines
Legal battles may delay the opening of Virginia's first pari-mutuel horse track by more than a year, the track's project manager said.
The Virginia Jockey Club, one of the losing applicants, has taken the Virginia Racing Commission to court over its decision to award the track license to Colonial Downs. Colonial Downs plans to build a track on 345 acres in New Kent County.
The litigation, ongoing since December, has put a virtual freeze on the $40 million in bonds promised to Colonial Downs by various investors, project manager Mike Johnson said.
``We're held up as long as they're in court,'' Johnson said Monday. ``Nobody will invest while there's any uncertainty.''
The track was scheduled to open in December. But Johnson said it will take 14 months after the litigation is wrapped up before work on the track can be completed.
``The answer to `When will it be done?' is `When's it going to be out of court?' '' he said.
Not soon, according to Lawrence Framme III, the Richmond-based attorney for the Jockey Club.
Last week, the Jockey Club, which wanted to build a track in Prince William County, filed a notice of appeal with the Virginia Court of Appeals. An earlier appeal, filed last December in Richmond Circuit Court, was denied in late May.
``It could be three to four months after this appeal is filed before oral arguments are scheduled,'' Framme said. ``Then it'll probably be another two months after that before a decision is made.''
The Jockey Club will file a formal appeal within 40 days, Framme said.
That means the matter may not be settled until early 1996 - and that's assuming the Jockey Club chooses not to appeal the case to the Virginia Supreme Court. ``There's no way to tell at this point, but it certainly is an option,'' Framme said.
The battle began last October when the Racing Commission voted 4-0, with one abstention, to award the license to Colonial Downs.
The Jockey Club, the only one of four losing applicants to challenge the decision, has argued that the decision goes against Virginia law, which stipulates that only corporations can receive a track license, Framme said.
Colonial Downs is a limited partnership of Ohio track owner Arnold Stansley and Maryland track owner Joe De Francis.
``We believe the Circuit Court blatantly ignored clear language in the statute which disqualifies Stansley Racing from holding a license to operate,'' Framme said.
In denying the first appeal, Circuit Court Judge Randall G. Johnson ruled that while state law does say the commission could only award a license to a corporation, ``such statements cannot be read literally.''
In New Kent, workers have built a road to the track and have cleared close to 200 acres, Johnson said.
``This track will be built, it's just a question of when,'' he said.
KEYWORDS: HORSE RACING RACE TRACKS by CNB