THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Thursday, October 19, 1995             TAG: 9510190394
SECTION: LOCAL                    PAGE: B4   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Short :   36 lines

NEGOTIATIONS FOR CONTRACT STALLED, RACING PANEL IS TOLD

One of the partners in a proposed two-state horse racing circuit said he is so frustrated by stalled contract negotiations that he is willing to submit to binding arbitration by the Virginia Racing Commission.

``We're exasperated enough to be bound by your decision,'' Maryland track executive Joseph De Francis told the commission Tuesday.

The proposed Maryland-Virginia circuit, which De Francis would manage, was crucial in the decision a year ago to award a license for Virginia's first pari-mutuel track to Arnold Stansley of Toledo, Ohio.

The deal between De Francis, whose Maryland Jockey Club owns Pimlico and Laurel Park tracks, and Stansley appeared to be completed a few weeks ago. Talks stalled after Stansley reopened negotiations on several points.

``We are as frustrated and exasperated as you must be,'' commission chairman John Shenefield told the track executives.

Stansley lawyer Ronald Tice said he would rather not submit the dispute to arbitration. That was fine with Shenefield, at least for now.

``I wish you guys would just do it yourselves and we don't have to get involved,'' Shenefield said.

The circuit plan calls for Maryland to close its tracks in the summer, ensuring a supply of horses for racing at Stansley's Colonial Downs. The Virginia track would close during Maryland's racing season.

KEYWORDS: HORSE RACING RACING COMMISSION by CNB