THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Thursday, January 16, 1997 TAG: 9701160002
SECTION: FRONT PAGE: A14 EDITION: FINAL
TYPE: Opinion
SOURCE: By O. J. PETERSON
LENGTH: 67 lines
As the new president of Colonial Downs, I was disturbed to see the editorial captioned ``Horsing around again'' (Jan. 6).
There are a number of inaccuracies and erroneous opinions expressed in the editorial that need to be responded to.
First: The opinion that the commission is lobbying for Colonial Downs is erroneous. The commission, whose duty is to regulate racing and further the interest of a native Virginia industry (i.e., horse breeding and selling), understands that it is not in the best interests of racing or the horse industry to stop the production of revenues that must be available to support live racing this summer.
Second: The opinion that plans for the track have been on the board for years and that the developers have put all of their energies into developing the parlors instead of the track itself, is also incorrect. Development of the track was held up for a year and a half by a lawsuit filed by an unsuccessful applicant for the racetrack license. Furthermore, we have in fact put most of our energy into the development of the track.
In business, the amount of energy a company invests in an endeavor is normally measured in dollars. To date, we have invested $4 million dollars in our satellite wagering centers and more than $6 million in the track. This is more than 1 1/2 times the amount invested in our wagering centers.
Third: The opinion that the track will never be profitable is also incorrect. The track, when completed, will represent well over 50 percent of our total investment. No company, and certainly no underwriter, would attempt to sell securities to the public that had no potential for profit.
Fourth: The opinion that the track developers reduced the number of days of racing from 102 to 30 because they knew the track would not be profitable is not true. The number of days of thoroughbred racing was reduced during the term of the first two-year contract negotiated with the representatives of the thoroughbred horse industry because the horsemen of Virginia believe, and we agree, that high-quality racing requires a purse level of approximately $150,000 per day to be competitive with neighboring states. The company has guaranteed $4.5 million of purse money each year for the first two years. $4,500,000 divided by $150,000 (EQ) 30.
Fifth: The opinion that the thoroughbred horse breeders of Virginia are the big losers is also incorrect. I cannot speak for all such breeders, but I can speak for myself. I have owned and bred thoroughbred horses alone or in partnership since 1983. I have bred horses in Kentucky and sent them back to Kentucky to be foaled. I have also raced horses in Maryland, Pennsylvania and New Jersey. I have never owned a Virginia-bred.
Now I have two horses in training in Virginia that I plan to race here this summer, and I have a mare in foal that will deliver in March, in Virginia. That foal will be my first Virginia-bred. All this was started before I accepted this position.
The opinion that the Virginia commission has put the interests of Colonial Downs ahead of the interests of Virginia is patently unfair.
1. Colonial Downs already has employed more than 300 Virginians.
2. We are paying state and local taxes at the rate of $6,500 per day, every single day.
3. We are trying our best to bring a new agribusiness and entertainment industry to the state that the citizens very much want to enjoy.
In my opinion, the racing commissioners are the Virginia government officials who best understand this business and who have the best interests of Virginia at heart.
We are merely asking the Virginia General Assembly for an extension from July to Sept. 1 to begin live racing at the track and to allow flexibility to manage uncontrollable weather.
KEYWORDS: HORSE RACING ANOTHER VIEW