Quinte Exhibition and Raceway, Kawartha Downs Raceway and Sudbury Raceway (Re), 2002 CanLII 63023

On November 25, 2002, Chair Stanley Sadinsky, Q.C, Vice-Chair Larry Todd and Commissioners Patricia Bullock, Tom Deacon and Ernest Nock convened to hear the Applications of Quinte Exhibition and Raceway, Kawartha Downs Raceway and Sudbury Raceway.

Legal Counsel Don Bourgeois and Manager of Information Services Wendy Hoogeveen appeared for the Administration.

The Ontario Racing Commission, after hearing the submissions from the applicants and the parties to the hearings, approved the following:

Live Race Dates

Quinte Exhibition and Raceway 26

Kawartha Downs Raceway 112

Sudbury Downs Raceway 66

Intertrack Race Dates

Quinte Exhibition and Raceway

Kawartha Downs Raceway

Sudbury Downs Raceway

All post times for Quinte Exhibition were approved as applied for.

All post times for Kawartha Downs Raceway were approved as applied for, subject to compliance with the pre-conditions for approval of the live race dates and post times set out in the Reasons for Decision.

The calendar of the approved Live Race Dates for Quinte Exhibition and Raceway forms an attachment to this Ruling. The calendar of the approved Live Race Dates for Kawartha Downs Raceway forms an attachment to this Ruling but this calendar and the approval are subject to compliance with the pre-conditions set out in the Reasons for Decision.

The post times for Sudbury Downs Raceway were approved subject to the condition that Sudbury Downs Raceway submit a revised calendar for the allocation of the 66 live race dates. The revised calendar shall reduce the number of days of live racing each week during the months of June, July and August, 2003 from 3 to 2 days per week and that those 13 days be scheduled during the months of April and May, 2003.

DATED at Toronto this 29^th^ day of November 2002.

BY ORDER OF THE COMMISSION _____________________________

Jean Major

Executive Director

REASONS FOR DECISION

The Ontario Racing Commission hereby grants the following Live Race Dates, Intertrack Race Dates and Off Track Wagering Dates at teletheatres for both domestic and foreign product for 2003 as follows. Implicit in the granting of dates is the renewal of a racetrack’s existing teletheatre licences. In order to utilize race dates, each track will require renewal of its Racetrack Licence. This function is performed by the Director of the Commission pursuant to the provisions of the Racing Commission Act, 2000.

STANDARDBRED DATES

Quinte Exhibition and Raceway 26 Live Race Dates – Post Times as requested; all Intertrack Race Dates and Off Track Wagering Dates at teletheatres as requested.

Kawartha Downs Raceway 112 Live Race Dates – Post Times as requested, all Intertrack Race Dates and Off Track Wagering Dates at teletheatres as requested.

Kawartha Downs has applied to the Commission for permission to reconstruct its racetrack in order to make it a dual-purpose track for both horse and car racing. It plans to add an asphalt base to the track and when car racing occurs, it would remove the racetrack topping and replace it when car racing ends. In 2003, Kawartha proposes to do this on 3 separate occasions in the blank weeks appearing on its Calendar for June, August and September.

This Application is partly opposed by the horsemen at Kawartha. They feel that now that they have an excellent surface to race on, they are not willing to compromise its excellence with the changes proposed. They do agree with the number of live race dates and the simulcast proposal.

Dan Coon, an expert in the construction of racetracks, appeared and indicated to us that neither the safety of horses or horsemen would be compromised by the changes. In fact Mr. Coon indicated that so long as there was proper maintenance of the racetrack racing surface, the changes would be beneficial.

Kawartha’s proposal is part of an overall strategy to diversify its operations by engaging in car racing, by constructing a hotel, spa, golf course and wastewater treatment plant and by renovating its existing grandstand. The horsemen are concerned that Kawartha’s business plan will render its racing operation secondary to its other business products. Kawartha assures us that this will not be the case.

After a major reconstruction of its racetrack in 2000, Kawartha has not fulfilled some of its undertakings to further improve its racing facilities in a timely manner. For example, Kawartha undertook to uplink its racing signal in the year 2002 and this has not happened. In addition, Kawartha undertook to reconstruct its horsemen’s changing room and it has not done so. We were also advised of the need for the paving of roads and parking lots and the repair of heating equipment in certain barns. These issues have further reinforced the opinion that Kawarta is giving less priority to its racing operation.

On the other hand, Kawartha should not be limited in its ability to use its facility to its fullest potential provided horse racing remains its core business and first priority. Otherwise it would not enjoy the benefits of slot revenue which will permit it to retire its capital debt incurred in building its slot facility and further use funds to enhance its overall operation.

Accordingly, we are prepared to approve the conversion of the racetrack to a dual purpose track as described on the following pre-conditions:

Kawartha develop a list of items for construction and/or renovation of its racing facilities which includes, but is not necessarily limited to the outstanding items in its prior undertakings together with the items for construction and/or renovation in 2003 as outlined in its material filed with us on this Application. This list must be satisfactory to the Administration of the Commission. The list must include the cost required for each item, a fixed completion date for the work involved and security in a form satisfactory to the Administration that the funds are available and set aside for these purposes.
That Kawartha retains Charles Coon and Son to develop a maintenance plan for the horse racing surface following re-construction to a dual track and that Coon supervise the 3 changeovers and rechangeovers of the track in the year 2003.
That Kawartha file with the Commission a copy of the plans already prepared by Coon for the conversion of the track.

Should the Administration and Kawartha fail to agree on what is required to satisfy these pre-conditions, the matter may be referred to the Commission. Furthermore, should Kawartha proceed with the re-construction to a dual track and it is found that the racetrack is unsuitable for horse racing, the Commission reserves the right to direct that Kawartha remove the asphalt base and restore the racetrack to its pre-reconstruction (as originally constructed by Mr. Coon in 2000) condition.

Sudbury Downs Raceway 66 Live Race Dates – all Intertrack Race Dates and Off Track Wagering Dates at Teletheatres as requested.

Following the Commission’s rejection of Sudbury’s earlier application to race 50 live days, Sudbury has now applied for 66 live days in a shortened racing season. Sudbury submitted that it was losing money on its race days at the beginning and end of its current season and so its live days should be concentrated in the summer months which are more profitable.

The horsemen at Sudbury oppose this current application on two grounds. First, the horsemen want 75 live days and they also want a season that extends over at least 9 months of the year. They argue that they have made a substantial investment in their racing businesses relying on an extended season. They argue that the 75-day meet has been successful from their perspective as it has increased their activities and improved the quality of racing. No one disputes these last points.

In our view, Sudbury must accept that not each of its separate racing activities will be profitable month by month and in themselves. The introduction of slots at racetracks was designed to elevate the quality of racing and it has provided additional funds to do so. This is precisely what has happened at Sudbury. The track must look at the overall benefits that it has derived from sharing in slot revenue and be prepared to support the objectives of the program even if there are some unprofitable days of live racing.

As a fair compromise of the conflicting interests, we are prepared to support a modest reduction in the number of live days to 66 (provided this does not become a first step towards further reductions in the future). However we have concluded that the horsemen are entitled to the advantages of an extended season. Furthermore, we have concluded that racing 3 days a week in the summer months as proposed, would be detrimental to the horses at Sudbury. In our view, one day from each of these 3-day-weeks should be shifted to the months of April and May thereby extending the season to 8 months.

Accordingly, we require Sudbury to resubmit a Calendar for the 66 live race dates that meets the above objectives.

Backstretch Improvement Plans

When applying for their 2003 race dates, all racing associations were required to submit a Backstretch Improvement Plan for 2003 and a statement of the improvements completed in 2002 as committed to through the 2002 Race Date approval process.

The Commission accepts the proposals of the racing associations listed above save and except for Kawartha as previously indicated.

DATED this 29^th^ day of November 2002.

Stanley Sadinsky, Q.C.

Chair