NEW MEXICO GAMING CONTROL BOARD Special Board Meeting May 4, 2010 MINUTES

Transcription

1 NEW MEXICO GAMING CONTROL BOARD Special Board Meeting May 4, 2010 MINUTES The Board of Directors of the New Mexico Gaming Control Board (Board) conducted a one-day Special Board meeting at Gaming Control Board Headquarters, 4900 Alameda Blvd. NE. Chairman David Norvell called the meeting to order at approximately 9:00 a.m., Tuesday, May 4, Due notice was published in accordance with the Gaming Control Act and the New Mexico Gaming Control Board Open Meetings Resolution and Chairman David Norvell declared a quorum. Present were: Commissioner Marc Prelo, Commissioner Marty Cope, Chairman David Norvell, Commissioner Demesia Padilla and Commissioner James Peterson. Executive Director John Monforte and General Counsel Frank Baca were also in attendance. Approval of Agenda Chairman Norvell asked Mr. Monforte if there were any modifications to the agenda. Mr. Monforte noted that there are no changes to the agenda. Chairman Norvell entertained a motion to approve the agenda as presented. M. Cope. Second: D. Padilla. Vote: 5-0. All voted to approve the agenda as presented: M. Prelo, M. Cope, D. Norvell, D. Padilla and J. Peterson Chairman Norvell: The agenda is approved.

2 2 1 Closed Executive Session. Chairman Norvell entertained a motion to go into closed executive session until 1:30 p.m., for the purpose of discussing La Mesa Racetrack & Casino L.P. f/ka/horse Racing at Raton. (Closed pursuant to section (H), NMSA 1978): M. Prelo. Second: D. Padilla. Vote: 5-0. A roll call vote was taken and all voted to go into closed executive session: M. Prelo, M. Cope, D. Norvell, D. Padilla and J. Peterson. 2 On Tuesday, May 4, 2010 at approximately 1:53 p.m., Chairman Norvell entertained a motion to go back into open session. D. Padilla. Second: M. Prelo. Vote: 5-0. A roll call vote was taken and all voted to go into open session: M. Prelo, M. Cope, D. Norvell, D. Padilla and J. Peterson. Chairman Norvell certified the only matters that were discussed in closed executive session was the issue of La Mesa Racetrack & Casino L.P. 1 Licensing Chairman Norvell: With regard to La Mesa Racetrack & Casino, I see that we have quite a crowd I know there probably a lot of people from Raton maybe came down to listen to what s going on so the floor is open for any discussion that anyone would like to talk to the Board about regarding the issuance of licensure of or continued licensing of La Mesa Racetrack. We have a lot of letters which we have received they ll be made part of the record but anyone who would like to visit with us about the subject its time now or forever hold your peace. Jesse James Johnson, Mayor of the City of Raton: Our former mayor and commissioners send their greetings so I just wanted to say hello and wanted to come and relate some of our feelings. Of course, for the City of Raton its obvious for us we know that this is a huge event a huge project for the City of Raton but we also

3 3 look at it more in the bigger picture, its not just for Raton its for Northern NM and all the surrounding areas during all these years that we ve promoted this thing and tried to get everything set up for it we ve always tried to stress that it s a regionalized deal. We fully understand that we could easily pull from a five state region for this and top of all that all the history of horseracing in Raton for decades has proven that we know that that can be done. We ve got that history for that track record, the only thing that I want to do is make sure that you understand and I m sure you do just reiterate it that its not just that important for Raton but for the State of New Mexico as well. The gaming industry for the state is huge and this being the sixth and final one could not only benefit Raton but the State as well under this industry. So I, for us and everything that we know about our history with horseracing the relationships with the horsemen s association, our climate, the area that we can pull from for us its simply it makes all the sense in the world to keep it in Raton. I don t know all the in and outs all the details of the delays that s something you folks need to iron out between the developer I realize that and we re just as anxious and nervous as anybody else in Raton. Our businesses, the City of Raton, our citizens but by the same token there s a lot of man hours a lot of time a lot of money involved in this and we ve never given up. Everything that needs to be done on behalf of the City of Raton has been done now we re just here again saying it still needs to be in Raton. North East NM, that comment has been made more than once I believe over the years is nobody every wanted to flood the market of any given part of the State of this and that s a perfect example because there is no market for North East NM that would cover all of that, that sixth and final one. Going back to what I said a bit ago that just with that it makes it obvious that the benefit comes from the State all the way down to Northern NM all the way down to the City of Raton and it needs to be there, it belongs there, that s what we ve worked so hard at it and its never been a one-man show, everybody has put hours and time and energy into this thing and we re proud of that and we have a little bit more to go I guess.

4 4 Chairman Norvell: Well, Mr. Mayor we re happy you came and we ve been working close with you and appreciate all of your help, we ve tried working with the citizens up there. Thank you for being here. Warren Frost, Executive Director of the Quay County Gaming Authority, which is Tucumcari, San Jon, Logan and Quay County: You all weren t part of the initial decision made two years ago on this track but we put in just as much work as Raton did and we tried to be good losers, we had a stiff upper lip the whole time but we tried to be good sports. We re sympathetic to Raton because Tucumcari is in exactly the same circumstance, Raton has done everything they should have done, the problem is, the reality is is that a racetrack won t work in Raton, it didn t two years it won t today and the fact that you ve given Mr. Moldenhauer two years and we can t even come up with plans that can be approved by the CID is ridiculous to us and especially in the circumstance where we have someone like Mr. Don Chamers whose willing to step up so when you re thinking about Raton and that s a definite consideration in how devastating its going to be there not the only town in the State who has the ability to benefit gravy from this and to have horseracing flourish in another part of the State, so I appreciate that. Chairman Norvell: Thank you Mr. Frost. Jack Chosnick, Mayor of Clayton: This project is not only vital for Raton but it will re-enforce the direction and the growth and economic development for the communities in the area and I think you realize the State has asked the communities to work together to re-enforce and to move ahead with our economic plans. I believe with the racetrack in Raton that this would be a very good start for all of us, Thank you. Chairman Norvell: Thank you, Mr. Mayor

5 5 Chairman Norvell: Does anyone else care to address the Board? If not, what is the pleasure of the Board. Commissioner Padilla: Well first of all I d like to say that this decision has not come about lightly, we have met over this, we ve deliberated, we ve listened to everybody and we ve taken everything into consideration but regrettably I have to move that the licensed conditions granted by Decision and Order dated be denied for failure to comply with conditions number 2 and number 3, in addition I move that the renewal application submitted by La Mesa Racetrack & Casino be deemed to have been submitted untimely and without payment of the proper fees. Second: M. Prelo. Chairman Norvell: The motion has been made and seconded. Is there any discussion from the audience, any of the Board members have any discussion? The Findings of Fact which the Board has dealt with in coming to a vote on this issue are as follows: Horse Racing at Raton, LP submitted an application for a gaming license on April 8, 2009 which was accepted for processing on April 9, 2009, the application was presented to the Board by our Executive Director, Mr. Monforte on May 1, 2009, May 19, 2009 and June 9, 2009 by Decision and Order dated June 11, 2009 the Board issued a gaming license to Horse Racing at Raton, LP conditioned on the occurrence of seven specific items and two of those items are ones that Commissioner Padilla contained in her motion which were specifically that the applicant shall submit an unconditional letter of commitment for funding sufficient to complete the construction of the racetrack facilities necessary to conduct live racing as outlined in Phase II in the applicant s licensed application and do so on or before December 31, Number 3 which is the second portion of Commissioner Padilla s motion is that the applicant shall submit a plan to be approved by the Board detailing its legal and financial divesture from LLMN Investment, LLC within thirty days of the issuance of this Decision and Order which should include the proposed and

6 6 restructuring of Horse Racing at Raton, LP and Horse Racing at Raton Management LLC as necessary and the divesture shall be completed by December 31, 2009 and the final one which was as Commissioner Padilla announced was the failure to file a renewal application timely and completely and payment of the proper fees. So that is what the issue is before the Board at this time. Is there any discussion from any of the Board Members? Mr. Peterson: No. Mr. Prelo: The only thing I can say is that we spent a lot of time on it and its not been something we just decided off the cuff and we think it s the best thing for the State of New Mexico at this time. Ms. Cope: As Mr. Prelo says this has been a tough decision and its going to detain some things in Raton that we still hope to see, we ll still have a license available and we still hope to see racing in Raton. Ms. Padilla: I would just like to call the question to vote. Chairman Norvell: Let me just say that this a sad day for I know the people in Raton, it s a sad day for the regulator authorities that are in charge of what path this matter takes and will take in the future. I think it s a sad day for the horse breeders and it s a sad day for the horsemen in New Mexico but we did receive one letter which I guess with the interest of equality we should at least read that into the record which basically was from Mr. Pat Bingham who is the Executive Director of the New Mexico Horsemen s Association addressed to Mr. Monforte and to Ms. Hatch which states that the New Mexico Horsemen s Association hereby goes on the record to state that it has lost all confidence in the ability of Racing at Raton, LLP to deliver on its obligation under agency issued licenses to operate a racetrack and a slot machine operation in Raton, NM during It s a sad day also for the State of New Mexico because we anticipated receiving a substantial tax revenue from this operation long before today and that tax revenue and horsemen s purses for the racetracks is something that simply has not happened and possibly will not happen because of this and so all of us are troubled by having to vote on this issue. This has been a long drawn out affair for both the Racing Commission and the Gaming Commission when we issued our license in June, shortly after that on the 24 th of June we all went up to Raton and gathered at the park across from the City Hall and the

7 7 Governor, legislators, city official, the Racing Commission, the Gaming Commission were there and were all excited about this it looked like something was really going to happen. We went out to the site after speeches by the Governor and put on our Franken Construction hard hats and our Franken Construction shovels and broke dirt and the problem has been that was the only dirt broken of any significance since January and we have always been concerned about what happened to July, August, September and October which are the prime times to build in Raton and still waiting until winter strikes and we never have received an answer to that troubling question but we nevertheless find ourselves where we are today and that is how long do we let this thing go. Mr. Moldenhauer self imposed a opening date on himself when he filed his application for September 2009 and everyone was excited about that and we thought that s really great we re have racing in 2010 as we know that date came and went and then Mr. Moldenhauer imposed January 31 as a self imposed date for opening the casino, that date came and went and the Gaming Commission felt at that point in time that it was necessary to not count on any more self imposed dates so we imposed a date of May 1 st for the casino to open so it would have some short time at least to raise some purse money for the races that were going to begin on Memorial Day and Mr. Moldenhauer was consulted about it, said he could meet that date we find that May 1 has come and gone just like the others have and so that s where we find ourselves today and I call Mr. Director for a vote on the motion. Vote: 5-0. Mark Prelo: Yes. Marty Cope: Yes. Demesia Padilla: Yes. Jim Peterson: Yes. David Norvell: Yes Chairman Norvell: The motion having carried the motion is adopted and we are now on that order of public comment if anyone has anything they would want to talk about before adjournment. Wayne, Member of the Horsemen s Association: One question I have is where do we go from here, is there going to be new applicants are we going to go with the old applicants for the interest of horseracing and our welfare we re wondering where

8 8 we stand here are we going to go in a different direction or nobody knows at this time. Chairman Norvell: Well there is sixth license, its still available the exact process by which that s going to be dealt with is going to be dependent upon some things that occur that are outside of our control at this moment but that license will eventually land somewhere, might land in Raton, there may be a new application process opened and the Racing Commission and just like before when they receive applications, that s the most likely process but there s some things that might happen between now and then that we don t know about at this time so I can t give you a definitive answer on that but probably the Racing Commission will eventually be receiving new applications and the process starts over. Are there any other questions? There were no other questions. Chairman Norvell entertained a motion to adjourn. D. Padilla. Second: J. Peterson. Vote: 5-0. A roll call vote was taken and all voted to adjourn: M. Prelo, M. Cope, D. Norvell, D. Padilla and J. Peterson. /s/david L. Norvell, Esq Chairman Date Approved: