THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, July 13, 1996 TAG: 9607130194
SECTION: LOCAL PAGE: B7 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WARRENTON LENGTH: 41 lines
The directors of Virginia's leading horsemen's group have reached an accord with the proposed Colonial Downs racetrack on a racing purses contract.
In addition, the horsemen listened Thursday to an outline of a plan to pump more money into the New Kent County track, including a public stock offering, in an effort to make it a first-class attraction.
The board of the Virginia chapter of the Horsemen's Benevolent and Protective Association voted unanimously to accept a contract offer put forward by Colonial Downs partner Jeffrey P. Jacobs.
Jacobs, who assumed a 50 percent share of the track last year, offered a contract calling for 5.25 percent of money wagered at the track and at off-track betting parlors to be placed in an account to pay off winning horsemen.
The agreement ends a stalemate between the horsemen and Arthur Stansley, holder of the Colonial Downs license, which threatened to delay the opening of the track.
Jacobs said racing will begin next summer.
``This is a partnership that could be a national model,'' he said. ``If we are looking at racing next year, we had to get this done.''
The agreement must be ratified by the full membership of the horsemen's group, said association President Richard Paulson. He said he expected approval.
``The horsemen are eager for racing,'' he said. ``The track operator is eager, too. I think it is a favorable agreement for the horsemen and fair to the track operator.''
Jacobs, meantime, told the horsemen that the $40 million budgeted for the track by Stansley isn't enough to make it competitive with other attractions. He said $55 million to $60 million is more realistic.
He is developing a plan to raise another $15 million to $20 million and said he intends to get some of it through a public stock offering.
Jacobs will present his plans to the Virginia Racing Commission when it meets next week. by CNB