Keeneland's Quarter Horse License Slowed

Efforts by Keeneland to open a Quarter Horse track in 2016 near Corbin, Ky, which also would offer historical racing, have been slowed by litigation and political maneuvering over its license application.

At its Tuesday, Dec. 1 meeting, the Kentucky Horse Racing Commission had planned to consider Keeneland's application for the state's open ninth racing license for the proposed Corbin track that would be called Cumberland Run. But early in the meeting outgoing chairman Bob Beck noted that a restraining order from a court in Floyd County would likely prevent the KHRC from considering the issue.

Keeneland opted to pursue the open license after initially pursuing through negotiation the license of Thunder Ridge Raceway held by Murray Sinclaire's Appalachian Racing.

The Floyd Circuit Court issued the restraining order in response to a request from Floyd County and Appalachian Racing. Appalachian Racing's Thunder Ridge Raceway is a harness track near Prestonsburg, Ky. Keeneland had been negotiating a purchase of Thunder Ridge's license that would be transferred to its proposed Corbin Quarter Horse track. 

Jason Nemes, an attorney for Appalachian Racing, contends an agreement with Keeneland is in place and Keeneland is in breach of contract. He declined to provide further detail because of the current litigation.

"Appalachian Racing wants to make sure that the process to consider the ninth license that Keeneland has applied for is a deliberate process and everyone with an interest has an opportunity to be heard," Nemes said. 

With state attorneys appealing the Floyd Circuit Court decision on Tuesday, Beck moved the Keeneland license request item to last on the agenda in hopes that the Kentucky Court of Appeals would grant the KHRC's request for a writ of prohibition, which would have prohibited Floyd Circuit Court from enforcing its restraining order. 

But the KHRC's appeal was denied, as the appeals court said it needed more time to examine the case. It only could have taken quick action if the KHRC had shown delaying the decision would have led to "irreparable harm." The appeals court decision was largely favorable toward the KHRC, noting that it appeared the Circuit Court was out of order in halting the racing commission's actions and the writ of prohibition will be heard at the next Court of Appeals motion panel.

"While the court is sympathetic to the argument that there is a kind of harm that leaves our system of justice blemished and never truly healed whenever one branch of government disregards the separation of powers and exercises authority and responsibility properly allocated to another branch, that harm does not meet the standard of irreparable harm," the court wrote in its decision.

The Lexington Herald-Leader reported Nov. 30 that House Speaker Greg Stumbo (D-Presonsburg) pre-filed legislation Nov. 20 for the General Assembly that starts in January that would prohibit a track owner from having more than one Kentucky license. The legislation also calls for a new applicant to pay the liabilities of the previous license holder should a license be moved. The paper reports that Thunder Ridge owes Floyd County $2 million.

Keeneland's application for the open license has the support of the Kentucky Quarter Horse Association and Kentucky Thoroughbred Association, which wrote a letters to the KHRC supporting the move. A report from Commonwealth Economics for Keeneland estimated that in its fifth year Cumberland Run would provide state-wide annual economic impact of $155.7 million.