GEN 3 /2000

COMMISSION HEARING TORONTO, ONTARIO – MARCH 9, 2000

IN THE MATTER OF THE RACING COMMISSION ACT, R.S.O. 1990, c. R2;

AND IN THE MATTER OF KAWARTHA DOWNS 2000 LIVE AND INTERTRACK RACING DATES

RULING

At the October 14^th, 1999 race date hearing, the Commission deferred consideration of Kawartha Downs’ 2000 race date application until such time as it submitted a plan on how to address the safety and sight line concerns that resulted from the construction of the new stock car track. The most serious safety concern expressed by local horse people racing at Kawartha Downs related to the proximity of the cement wall to the harness track.

On November 1^st, 1999, Kawartha Downs’ submitted a conceptual plan for a new track design (3/4 or 7/8 mile) along with a commitment to have the new track ready for racing on or before the commencement of the 2000 racing season. On November 8^th, 1999, Ontario Harness Horse Association (OHHA) expressed a preference for the 7/8^th mile design and submitted its comments on the conceptual plan.

On November 12^th, 1999 the Commission made an order Series GEN 13/1999 requiring inter alia that Kawartha Downs construct a 7/8^th mile track in accordance with a design to be approved by the Commission and OHHA.

On March 9, 2000 the Ontario Racing Commission convened to hear a motion brought on behalf of Kawartha Downs to vary Ruling Gen 13/1999. Present were Chair Stanley Sadinsky Q.C., Vice Chair Herbert Bryant and Commissioners Bullock, Carlton, Deacon, Duncan and Nock.

Counsel Harvey Jones appeared for Kawartha Downs, Counsel Larry Todd appeared for the Ontario Harness Horse Association and Ann Gibson appeared for the Administration.

At the hearing of the Motion, Commission staff and Kawartha Downs submitted an Agreed Statement of Facts concerning the attempts by Kawartha Downs to comply with the order of November 12, 1999.

The Ontario Racing Commission, after reviewing the submissions from Kawartha Downs and the Ontario Harness Horse Association renewed Kawartha Downs’ race track operator’s licence and approved the following race dates:

55 Live Race Dates – Post times as requested

All Intertrack Race Dates and off track wagering dates

at teletheatres as requested.

GEN 3/2000

Ruling (continued)

The Commission’s approval of race dates is contingent upon the following terms and conditions, which are consented to by Kawartha Downs:

1. Kawartha Downs will construct a new 7/8^th mile track without hub rail and with a safety lane inside the pylons. The inner side of the new track will be at least 30 feet away from the existing hub rail. The new track will be ready on or before June 30, 2001.

2. Kawartha Downs will improve/upgrade the track lighting system with particulars to be provided in the architectural drawings to be provided below.

3. Kawartha Downs will submit complete architectural drawings for the new track by April 1, 2000. These drawings should also be submitted to the C.P.M.A. and the O.H.H.A. It is understood that the Ontario Racing Commission’s interest in the architectural drawings is restricted to reasonable safety issues and matters which would affect racing officials from carrying out their regulatory responsibilities such as the issue of sight lines. Kawartha Downs will further forthwith file and pursue all necessary clearances from the Otonabee Region Conservation Authority and all other requisite municipal authorities for the construction of the aforesaid 7/8^th mile track and copies of said applications for approval shall be filed with the Ontario Racing Commission as soon as practicable after filing.

4. All applications by Kawartha Downs to the Otonabee Region Conservation Authority and all other requisite municipal authorities for approval for the construction of the aforesaid 7/8ths mile track shall be segregated and separated from any and all other applications which Kawartha Downs may be undertaking or advised to undertake including, but not limited to the development of a golf course adjacent to the subject racetrack premises.

5. The new 7/8^th mile track will be raised at least 1.5 feet from the levels of the existing track.

6. Year 2000 and Year 2001 racing to June 30, 2001, should such race dates be granted for 2001, shall only take place on a modified 5/8^th mile track constructed as described and delineated in Schedule “A” hereto.

7. No live racing will take place on the modified 5/8^th mile track described in schedule “A” after June 30, 2001.

8. It is understood and agreed that Year 2000 race dates, live or teletheatre, are conditional on compliance with paragraphs 3 and 4 above. If the conditions are not fulfilled, Kawartha Downs’ race dates will be revoked and there will be no live racing in 2000. It is further directed that Kawartha Downs’ application for approvals for the 7/8^th mile track as referenced in paragraphs 3 and 4 above shall be pursued in a timely and bona fide fashion, failing which Kawartha Downs’ live race dates for 2000 may be revoked at any time.

Gen 3/2000

Ruling (continued)

9. Non-compliance with the above terms and conditions will further result in the revocation of Kawartha Downs’ racetrack licence.

10. Kawartha Downs shall provide a detailed written progress report with respect to the aforesaid

7/8^th mile track for review by the Ontario Racing Commission at the 2001 race dates hearings

in the month of October, 2000.

The Commission further accepted Kawartha Downs’ proposals for the Industry Revitalization Program and Customer Benefits for 2000.

DATED this 10^th day of March, 2000.

BY ORDER OF THE COMMISSION ________________________________

Jean Major - Director