THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Wednesday, April 17, 1996 TAG: 9604170410
SECTION: LOCAL PAGE: B9 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: RICHMOND LENGTH: Medium: 69 lines
The Virginia Court of Appeals on Tuesday rejected a challenge by a failed applicant for the state's first pari-mutuel horse-racing track.
The court denied the Virginia Jockey Club's appeal of the Virginia Racing Commission's October 1994 decision to award the racing license to Stansley Racing Corp. The court case has delayed construction of Stansley's Colonial Downs track in New Kent County.
The Virginia Jockey Club argued that the commission violated its own regulations in awarding the license to Stansley Racing of Toledo, Ohio.
But Judge Sam W. Coleman III, writing for two members of the three-judge appeals court, upheld a Richmond Circuit Court ruling that the licensing was proper.
``If we adopted appellant's narrow definition of the commission's authority, we would frustrate the commission's ability to award licenses in a manner that would be `in the best interests of the people of the commonwealth,' '' Coleman wrote.
Judge Joseph E. Baker dissented, saying the commission handled the license improperly.
Lawrence H. Framme III, a lawyer for the Virginia Jockey Club, said his client needs to review the ruling before deciding whether to appeal to the full appeals court or the Virginia Supreme Court. He said the Virginia Jockey Club, which wanted to build a track in Prince William County, will act in the best interests of the Virginia horse-racing industry.
The Virginia Jockey Club deserves the license ``because of its location actually in Virginia horse country and because it is the only one that accesses the Northern Virginia market as well as the rest of the state,'' Framme said.
Colonial Downs originally planned to open the New Kent track this spring, but those plans have been put on hold indefinitely because of the litigation. The Virginia Jockey Club was the only unsuccessful applicant to challenge the Colonial Downs license.
``We're a lot further ahead then we were in November of '95 or '94'' because of Tuesday's ruling, said Donald Price, executive secretary of the Virginia Racing Commission. But he said the track probably will not be built until the litigation is settled.
Brett Stansley, vice president of Colonial Downs, said the developer is pleased with the decision, but it only represents another step in the process, because the Virginia Jockey Club could appeal. While waiting for the litigation to be settled, the company will do as much preliminary set-up work on the track as it can, he said.
``We're anxious to get going and build Virginia her race track,'' he said.
Under the commission's rules, Colonial Downs would have to complete the track within 14 months of the settlement of the litigation.
In a related matter, the General Assembly on Wednesday will consider a measure that would force Colonial Downs to put money into a fund to pay for construction of its horse-racing track immediately.
State Sen. Kenneth W. Stolle, R-Virginia Beach, asked Gov. George F. Allen to add the emergency clause to a bill Stolle sponsored this year. The original bill requires Colonial Downs to put profits from its betting parlors in a construction fund for the track.
If the legislature approves the emergency clause, the bill would take effect immediately instead of the normal July 1 date for new legislation.
Colonial Downs operates an off-track betting parlor in Chesapeake. Plans to open a second parlor in Richmond have been delayed by a lease problem.
KEYWORDS: PARI-MUTUEL BETTING HORSE RACING RACE TRACK by CNB