The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Friday, February 9, 1996               TAG: 9602090472
SECTION: LOCAL                    PAGE: B7   EDITION: FINAL 
SOURCE: ASSOCIATED PRESS 
DATELINE: RICHMOND                           LENGTH: Medium:   59 lines

RACING OFFICIALS SEEK TRUCE FOR TRACK DEVELOPER, HORSEMEN A REJECTED TRACK APPLICANT PRESENTED CASE FOR REVOKING THE TRACK OPERATOR'S LICENSE.

State horse racing officials attempted Thursday to iron out differences between horsemen and the developer of Virginia's first pari-mutuel track.

Earlier in the day, a spurned track applicant presented arguments to an appeals court on why the operator's license should be revoked.

The Virginia Racing Commission issued a license to Ohio track operator Arnold Stansley 16 months ago. But construction of Colonial Downs in New Kent County has been delayed by an appeal from the Virginia Jockey Club, which also applied for the license.

``A horse track is a capital-intensive operation, and no one is going to put up the kind of money you need while there's a lawsuit in court,'' said Colonial Downs lawyer James L. Weinberg.

Larry Framme, a lawyer for the Virginia Jockey Club, told the Virginia Court of Appeals that the commission gave Stansley the license improperly. The court heard an appeal of a Richmond Circuit Court finding in favor of the commission this fall.

Framme told a three-judge panel that the commission violated its rules and the laws establishing it when it gave Stansley the license.

Representatives of the commission said Stansley should keep the license.

The racing commission later held a special meeting to encourage Colonial Downs and horsemen to agree on how much money from off-track betting parlors will go to a fund to build purses before live racing begins.

``Let's get this done,'' said commissioner Robin Traywick Williams.

Horsemen said the money must start going into purses to attract horses to run.

``If you don't have enough money, you won't get any horses,'' said Donna Rogers, president of the Virginia Horsemen's Association. Colonial Downs officials said they continue to negotiate with horse owners.

The track seems to have cleared one hurdle by reaching a tentative agreement with the Maryland Jockey Club on how the track and betting parlors would operate.

Under the draft agreement, Colonial Downs would control operations, with guidance from the Maryland group. The Maryland Jockey Club has agreed to suspend thoroughbred racing in that state on days when horses are running at Colonial Downs. The suspension is supposed to encourage Maryland trainers to race at Colonial Downs.

``Frankly, we are not pleased with the agreement because our ability to get Maryland horsemen down here is constrained,'' said Joseph De Francis, whose Maryland Jockey Club owns the Pimlico and Laurel Park tracks. ``But the only result of further negotiations would be to further postpone the track opening.''

Commission officials said it could act as soon as next week.

KEYWORDS: HORSE RACING by CNB