DATE: Tuesday, November 11, 1997            TAG: 9711110275

SECTION: LOCAL                   PAGE: B5   EDITION: FINAL 

SOURCE: ASSOCIATED PRESS 

DATELINE: NEW KENT                          LENGTH:   47 lines

CONTRACTOR SUES COLONIAL DOWNS, CLAIMING BILLS OF $11.8 MILLION

The general contractor for Colonial Downs has filed court claims seeking $11.8 million in alleged unpaid bills from the horse track that opened for racing Sept. 1.

But the five claims, known as mechanic's liens, filed in New Kent County Circuit Court are disputed by Colonial Downs, which has a $29 million contract with Ohio-based contractor Norglass.

``We're simply looking to protect our rights and those of the subcontractors who sweated to get this job done,'' Norglass attorney Jim Thompson said Monday.

Thompson said Colonial Downs has not paid Norglass since May.

Colonial Downs attorney James Weinberg said not all work at the track has been completed and that Norglass is asking for some incorrect amounts or sums that already have been paid.

Colonial Downs President O.J. Peterson has said some track work was unsatisfactory. He cited a roof that leaks and an improperly painted grandstand floor that peeled on opening day.

The liens include:

$5.4 million for unpaid bills from June to August.

$2.3 million for keeping Norglass on retainer.

$2.2 million for work not included in the original contract.

$1.6 million for bills in September.

$364,500 for bills in October.

Thompson said Norglass plans to file an additional lien for $300,000 to cover other October bills. The rest of the $29 million contract has been paid, he said.

Don Price, executive secretary of the Virginia Racing Commission which regulates Colonial Downs, has been looking into the dispute. The commission could order the track to make payments.

Price was not available for comment Monday. But he said earlier he didn't believe the dispute indicates a cash flow problem.

The track's ``handle,'' the amount bet by race-goers, was $6.1 million for its inaugural thoroughbred meet that ended last month - about half what the company hoped for. The track plans a 50-day harness meet beginning in April.

Colonial Downs will file a quarterly report with the Securities and Exchange Commission on Friday.

Colonial Downs stock closed Monday at $5.38, down 6 cents for the day and the lowest since the $9.25 peak on Sept. 2, the day after the track opened.

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