MGCB Director Richard Kalm’s Games Continue. Signs Order To Approve Harness Tracks For Thoroughbred Racing in 2014 After Already Denying Northville Downs.

http://www.michigan.gov/documents/mgcb/NVD_Denial_of_2014_Thoroughbred__Mixed_Meet_Race_License_442855_7.pdf

EDIT ON JAN. 30, 2014 AT END.

MICHIGAN GAMING CONTROL BOARD – HORSE RACING SECTION
OFFICE OF EXECUTIVE DIRECTOR

In the matter of:

John Carlo, Peter Battista, Margaret Zayti Partnership, d/b/a Northville Downs Application for a 2014 Standardbred, Thoroughbred and Mixed Meet Race Meeting License and 2014 Simulcast Permit Amended to reduce live race days from 26 to 10 on October 22, 2013. ORDER DENYING NORTHVILLE DOWNS A 2014 THOROUGHBRED AND MIXED MEET RACE MEETING LICENSE Northville Downs filed an application on August 30, 2013, for a 2014 Standardbred, Thoroughbred, and Mixed Meet Race Meeting license and a 2014 Simulcast Permit with the Executive Director of the Michigan Gaming Control Board. The application was filed under the Horse Racing Law of 1995, Public Act 279 of 1995; MCL 431.301 et seq., and the promulgated administrative rules. On October 22, 2013 Northville Downs submitted a significant and untimely amendment to their application to decrease live race days from 26 to 10. That request was denied on November 1, 2013.

On November 1, 2013 the Executive Director granted the application of the licensee for a Standardbred 2014 Race Meeting license at Northville Downs for the 26 live race days requested in the original application. While the Horse Racing Law of 1995 does not provide for the submission of race meeting applications after September 1 of each year, the Executive Director, in the best interest of racing, allowed Northville Downs to submit an amended application subject to certain conditions listed in that order and referenced below. Northville Downs represented that the amended application was for the primary purpose of converting its track to allow for
thoroughbred racing. The conditions for considering the amended application for a Thoroughbred and Mixed Meet Race Meeting license included the following:

(a) Amend the application for a 2014 Race Meet license by answering all questions as they pertain to the horse breed(s) contracted to race at the 2014 Northville Downs race meet.

(b) The licensee must submit a signed contract with all certified horsemen’s organization(s) representing the breed(s) of horses the applicant intends on racing.

(c) The licensee must submit a business plan detailing how the combination and/or changeover from Standardbred to Thoroughbred and mixed breeds will occur. That plan should detail the costs, funding and timeline involved with converting the track.

Replies to the above conditions were required to be adequately and sufficiently submitted to the Executive
Director by December 1, 2013 to allow for these amendments to be considered. However, Northville Downs has failed to meet the above conditions.

Specifically, Northville Downs has failed to demonstrate a definitive, specific, and detailed plan that could be approved according to the Horse Racing Law of 1995. The Executive Director finds the following deficiencies:

1. The licensee failed to supply a convincing plan to assure sufficient numbers of Thoroughbred horses and Quarter Horses for the proposed meet.

2. No assurance that sufficient simulcast purse pool money will be available for such a race meeting.

3. The amended application is untimely due to the ordered race dates commencing in January 2014 which does not allow for complete vetting of the application.

4. No assurance that the track will be safe for the proposed function and on par with industry standards.

5. No assurance of funding for the track conversion.

6. The submitted plan does not appear to be in the best interest of horse racing in the State Of Michigan for 2014.

Accordingly, Northville Downs’ amended application for a Thoroughbred and Mixed Breed race meeting license is denied.

IT IS SO ORDERED.

Date: December 18 2013

Richard Kalm, Executive Diirector Michigan Gaming
Control Board

 

Jan. 21, 2014

Reporting on both the MIHBPA (http://www.mihbpa.com/news.html)& MHHA (http://www.mhha-online.com/newsite/index.php)websites out of a clear blue sky signs an order approving both Northville Downs & Hazel Park applications for Thoroughbred Racing in 2014.

Why the about-face when already stating my main concern?

4. No assurance that the track will be safe for the proposed function and on par with industry standards.

NVD is a half mile racetrack that sits between two city streets with the backstretch aligned with 7 Mile Rd.

The MIHBPA will be paying through the nose to race at both Hazel Park & Northville Downs. If these two tracks wanted the T.B.’s so bad why don’t they spend their own money to re-surface to switch back and forth.

MIHBPA president George Kutlenios put a statement on the website back 4 moths ago: The Michigan HBPA and the horsemen and women of our sport are ecstatic with this new relationship.

George Kutlenios is a liar. Here is a man who didn’t even get into horse racing until just a few years before the 2008 opening of Pinnacle Race Course. All of a sudden he’s the MIHBPA President and is making a 5 year pact with the same devil who rejoiced when the Detroit Race Course was bulldozed. The harness tracks and their horsemen/women.

In reality Hartmen & Tyner were partners with Ladbroke on Canterbury Downs (bought in 90, shut down in 92′) another thoroughbred track they had shut down before DRC. The only reason that Canterbury is still standing is because the three didn’t own the land in-which it sat on. Thus the track was sold and remained a racetrack. Today it is thriving as a Racino.

If you don’t think Hartman & Tyner, Hazel Park’s owners didn’t have a hand in the shutting down & demolition of DRC their Thoroughbred competition think again.

But Kutlenios wasn’t a part of this history, he hasn’t a clue. This man has never been right about anything.

He contacted me via email on Dec. 11, 2010 message:

If you have some time today, please give me a call. I’d like your opinion on something.

The subject matter upon calling him was Mt. Pleasant Meadows.

My response was without hesitation: The reason why the horsemen traveled to the other side of the State was to avoid MPM. Nobody wanted to race in the middle of nowhere at a shit hole half mile race track. Did he listen? No

Was he sorry? Yes

Now he’s stating everybody is ecstatic about 5 year contract with another half mile even smaller shit hole. I can’t count all the times the Racing Commissioner when we still had the ORC closed Northville downs because of the horrendous track surface. In fact shut them down for about 4 days in the late 90s not letting them simulcast either until the track fixed the racing surface.

And for those of you thinking but it’s a good thing returning to Hazel Park like the good old days…but it isn’t the good old days. Now this is one gigantic political game designed to do one thing and only one thing. END LIVE HORSE RACING FOR ALL BREEDS.

You have to see through all of the bullshit and the games Hartmen & Tyner’s boy Dan Adkins has played. Not only with phony legislative bills here but also in Florida.

In 2005 Northville Downs tried to stop Frank Stronach from obtaining a license & plans to build a thoroughbred track. Siting the Metro/Detroit couldn’t accommodate three tracks when we did for 49 years. Stronach never went ahead with those plans but just three years later Pinnacle was up & running.

You think they liked this? Or Hazel Park?

Don’t think so, again they rejoiced when the State pulled the rug from out of the Thoroughbred horsemen/women. allotting us 84 racing dates then took them all back but 3. Forcing the MIHBPA to buy back 39 racing days which cost them a $1 Million Dollars out of their purses. In fact the MGCB came back at them a second time a month before the meet was to conclude demanding even more money and paid them again.

Didn’t hear any boo-hooing from the harness horsemen then but they sure are crying now with this new news of Richard Kalm’s about-face.

In reality I don’t give a damn about the harness horsemen, they along with their tracks threw every roadblock in the path of the thoroughbred horsemen since the beginning of racing history here.

What I do give a damn about is the game now being played by the idiotic clueless MIHBPA President, Harness Tracks & MGCB Director Richard Kalm.

To me the only thing this collusion of harness tracks & Kalm is about spells death not only for the harness but ultimately for the thoroughbreds as well.

One minute one track defined unsafe then all of a sudden it’s a go. What it is, is all bullshit and the State Attorney needs to step in and investigate the real motives here.

Signed into a 5 year contract, if any legislation were to come through to help horse racing and if somebody could step up to the plate to re-open Pinnacle Race Course, the thoroughbreds are bound to two stinking harness tracks.

Frankly I’d like to see this contract.

In 2011 this was put on Hazel Park’s website:

There is no stabling at Hazel Park this year and the backstretch ship-in accommodations have been redesigned so everyone will be a little closer to the paddock. The biggest change you’ll notice is that barn 15 will no longer be used (except as back-up). On most race days, barns 2, 14, and part of 3 will be used for ship-in. There is bound to be a learning curve for both track personnel and horsemen as we get comfortable with the new logistics, so be sure to leave yourself plenty of time and follow instructions carefully.

And ever since there has been no stabling. Their barn area is basically gone, what is still standing is ready to fall down. Same at NVD.

The millions the MIHBPA will spend to run at these two tracks? I shake my head.

One a bullring, the other a death trap with no room for thoroughbreds to run at 40 miles an hour without killing themselves. This is a travesty, a damn sad sickening shame.

Two harness tracks, one partners with the owner who destroyed DRC the other who tried to stop the building of another T.B. track.

George Kutlenios this time is leading the thoroughbred horsemen/women off of a cliff doomed for good. My question is why are they following him? He has no clue at what he is doing.

As I stated this isn’t the good old days anymore, in this day and time now it is a trap and in the end the MIHBPA will be even sorrier they evet entered such an agreement with this entity.

As far as the track owners they know exactly what they are doing and it needs to be legally investigated. The Sherman Anti-Trust Act comes to mind.

And Richard Kalm’s games need to be ended permanently.

As of right now there is nothing posted to the MGCB site on this order he signed as of Jan. 21, 2014.

Will update when it is.

 

To be continued…

 

Letter to Harness Horsemen by Richard Kalm on Jan. 24, 2014.


http://www.michigan.gov/documents/mgcb/2014-01-24_letter_to_Horsemen_445532_7.pdf

I love this excerpt:

The entry/starter fee is paid to the track management to cover track related matters. “This money is not co-mingled with the purse pool money. The starter bonus is an amount of money negotiated by the CHO and track to be paid from prizes awarded out of the purse pool” for horsemen who start each race.

WTF??? LOL Isn’t this the same damn thing. We all know it’s a “back door” deal. $$$ going and coming from same source. Unbelievable.

In it’s entirety.

January 24. 2014

Harness Horsemen of Michigan:

On October 31, 2013, and November 1, 2013, Executive Orders were issued granting Hazel Park and Northville Downs Race Meeting Licenses to conduct live and simulcast racing. The Race Meeting Licenses awarded race dates, but were breed neutral, meaning the breeds to be raced were not specified. This was done to give the tracks the opportunity to submit additional information regarding their proposed and requested thoroughbred track conversion plans. It also permitted a cooling off period to allow Michigan Harness Horsemen’s Association (MHHA) and the Gaming Board to explore the possibility of expanding Harness Race date opportunities with the tracks. The orders were issued as required by Nov. 1st.

During this process I complied with our statutory responsibilities by approving the race meeting licenses to applicants that met the contract demands of the Certified Horsemen Associations (CHO) involved at their tracks. The applicants (tracks) made the decision to present a different product to their customers with the goal of increasing interest in the sport and perhaps making a profit. The Executive Director can only act on the applicant’s requests not those of other parties.

The 2014 Orders allow for 10 months of racing, perhaps different breeds and less days, but still horse racing. MHHA contracts do not specify a number of race days a track must race. The contract they signed with the tracks runs through 2014. The law prohibits the Executive Director granting more dates than adequate horse supply will support. It also does not allow us to order an increase at a specific track. In contrast, Michigan Horsemen’s Benevolent and Protective Association (MiHBPA) and Great Lakes Quarter Horse Association (GLQHA) have each historically set specific days in their contracts with the tracks. The approved days for Northville Downs and Hazel Park are within those guidelines.

After waiting an extended period of time in order for MHHA and the tracks to resolve the race day issue, my staff held a meeting with representatives from Northville Downs and MHHA on January 3, 2014. There was again a discussion about increasing the race days, and the staff left the two groups alone to work out an agreement. No movement was made. As the meeting concluded staff urged both groups to work together to resolve the issue. At my direction, Gaming Board staff separately talked with Northville Downs concerning increasing their days, and Northville Downs proposed a 15-day meet in May instead of a 10-day meet in March. On January 17, 2014, MGCB staff talked to MHHA representative Phil Stommen and MHHA President Brett Boyd. Mr. Boyd rejected the 15-day meet in May stating they would rather race 10 days in March. Later that day, my staff received a request from the MHHA to delay issuing any Executive Orders to allow them to send another proposal to Northville Downs. Gaming Board staff received a copy of the proposal at 4:19 p.m.and the Executive Orders were put on hold until January 21, 2014. Upon no deal being reached between Northville and the MHHA, the Executive Orders were issued January 21st.

I along with my staff have examined the issue of entry/starter fees and do not believe this is against the Horse Racing Act or Rules. The entry/starter fee is a negotiated amount agreed upon by the certified horsemen Organization (CHO) and the track. The entry/starter fee is paid to the track management to cover track-related matters. This money is not co-mingled with the purse pool money. The starter bonus is an amount of money negotiated by the CHO and track to be paid from prizes awarded out of the purse pool for horsemen who start each race. If the horse does not start, the track will refund the entry/starter fees. The tracks and the CHO are willing participants.

Our intent is, and has always been, to maximize live racing opportunities for the horsemen. However, we are unable by law, to increase days or decide which CHO a track must negotiate or contract with. The actions we take here at the Gaming Board have to comply with the racing act as interpreted by our Attorney General advisors.

The reference to “moral and legal implications” caused by the Gaming Board, as recently stated by MHHA leadership regarding our efforts to follow the law, is inappropriate. We can only encourage the CHOs and tracks to work together. We don’t negotiate contracts, we can’t mandate to a track the product they choose to provide whether it be Thoroughbred, Standard bred, or Quarter horse. We will not involve ourselves in disputes between internal factions of the industry. We won’t take action that would breach either party’s legally negotiated contract. I am confident the Gaming Board has done and will continue to do our duty under the racing act to guard the integrity of the “whole” racing industry during this very tough time and annual decrease of racing activity.

Thank you,
Richard S. Kalm
Executive Director

END

Again I refer to the reasons behind the original denial of NVD.

In the matter of:

John Carlo, Peter Battista, Margaret Zayti Partnership, d/b/a Northville Downs Application for a 2014 Standardbred, Thoroughbred and Mixed Meet Race Meeting License and 2014 Simulcast Permit Amended to reduce live race days from 26 to 10 on October 22, 2013. ORDER DENYING NORTHVILLE DOWNS A 2014 THOROUGHBRED AND MIXED MEET RACE MEETING LICENSE Northville Downs filed an application on August 30, 2013, for a 2014 Standardbred, Thoroughbred, and Mixed Meet Race Meeting license and a 2014 Simulcast Permit with the Executive Director of the Michigan Gaming Control Board. The application was filed under the Horse Racing Law of 1995, Public Act 279 of 1995; MCL 431.301 et seq., and the promulgated administrative rules. On October 22, 2013 Northville Downs submitted a significant and untimely amendment to their application to decrease live race days from 26 to 10. That request was denied on November 1, 2013.

On November 1, 2013 the Executive Director granted the application of the licensee for a Standardbred 2014 Race Meeting license at Northville Downs for the 26 live race days requested in the original application. While the Horse Racing Law of 1995 does not provide for the submission of race meeting applications after September 1 of each year, the Executive Director, in the best interest of racing, allowed Northville Downs to submit an amended application subject to certain conditions listed in that order and referenced below. Northville Downs represented that the amended application was for the primary purpose of converting its track to allow for
thoroughbred racing. The conditions for considering the amended application for a Thoroughbred and Mixed Meet Race Meeting license included the following:

(a) Amend the application for a 2014 Race Meet license by answering all questions as they pertain to the horse breed(s) contracted to race at the 2014 Northville Downs race meet.

(b) The licensee must submit a signed contract with all certified horsemen’s organization(s) representing the breed(s) of horses the applicant intends on racing.

(c) The licensee must submit a business plan detailing how the combination and/or changeover from Standardbred to Thoroughbred and mixed breeds will occur. That plan should detail the costs, funding and timeline involved with converting the track.

Replies to the above conditions were required to be adequately and sufficiently submitted to the Executive
Director by December 1, 2013 to allow for these amendments to be considered. However, Northville Downs has failed to meet the above conditions.

Specifically, Northville Downs has failed to demonstrate a definitive, specific, and detailed plan that could be approved according to the Horse Racing Law of 1995. The Executive Director finds the following deficiencies:

1. The licensee failed to supply a convincing plan to assure sufficient numbers of Thoroughbred horses and Quarter Horses for the proposed meet.

2. No assurance that sufficient simulcast purse pool money will be available for such a race meeting.

3. The amended application is untimely due to the ordered race dates commencing in January 2014 which does not allow for complete vetting of the application.

4. No assurance that the track will be safe for the proposed function and on par with industry standards.

5. No assurance of funding for the track conversion.

6. The submitted plan does not appear to be in the best interest of horse racing in the State Of Michigan for 2014.

Accordingly, Northville Downs’ amended application for a Thoroughbred and Mixed Breed race meeting license is denied.

IT IS SO ORDERED.

Date: December 18 2013

End

Dec. Denial: “under the Horse Racing Law of 1995, Public Act 279 of 1995; MCL 431.301 et seq., and the promulgated administrative rules”

Jan. Approval: “The actions we take here at the Gaming Board have to comply with the racing act”

Can he get any more contradictory?

And this “this very tough time and annual decrease of racing activity”.

Why has it decreased? Because the MGCB allotted racing days then TOOK THEM BACK. Case in point: Pinnacle Race Course 2010: Allotted 84 days, then took them all back but 3.

This is all f’n absurd.

All I know is the MIHBPA should be ashamed of themselves getting suckered in by both, the Harness Tracks & the MGCB.

“Insanity: doing the same thing over and over again and expecting different results.”

Northville went to being unsafe for the proposed function and on par with industry standards for thoroughbreds, then all of a sudden, hell let them die.

They’ll find out again the hard way.

 

Leave a comment

Filed under News, Politics

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s