2011 Stallion Directory     Stakes Results     Trial Results    Auction News     Videos     Trainers     Classifieds     Racetrack Trip Locator     Subscribe     Advertise

NM Racing Commission: Mr. Moldenhauer, You Have No License - Special Report by PETE HERRERA ALBUQUERQUE, NM - Feb. 24, 2011 - Canadian investor Michael Moldenhauer no longer has a license to build the La Mesa racetrack and casino in Raton. That was the decision reached by the New Mexico Racing Commission, which also announced it plans to begin the process for taking new applications for the state’s sixth and final racino. The Racing Commission said it concurred with a hearing officer’s decision that Moldenhauer’s racing license had expired at the end of 2010 and there was no longer any need to pursue disciplinary action against him. ``The commission agrees with the hearing officer that the license issued on Sept. 9, 2009, has expired,’’ Assistant Attorney General Tania Maestas told Moldenhauer. ``Thus, at the present time Mr. Moldenhauer, you hold no license.’’ Maestas serves as the Racing Commission’s attorney. But the battle that has been going on for months between Moldenhauer, the Racing Commission and the state’s Gaming Control Board may be far from over. Moldenhauer is appealing the revocation of his gaming license last year by the Gaming Control Board and has the option of appealing the Racing Commission’s decision to a state district court. His appeal of the Gaming Control Board’s action would be heard by a federal court. New Mexico Racing Commission Chairman Eddie Fowler said the commission would wait 45 days before accepting new applications. That would give Moldenhauer and his attorney ample time to pursue appeals. Moldenhauer told the Albuquerque Journal he plans to appeal the Racing Commission’s decision. ``It’s fine for them to say they’re going to open up the process in 45 days and accept new applications, but the reality of it is that La Mesa has rights,’’ Moldenhauer said. ``We filed a (racing) license renewal application and they tabled it. It still has not been voted on to this day.’’ Moldenhauer’s gaming license was revoked after he couldn’t get the racetrack in Raton built in time to hold a live meet starting on Memorial Day last year. Moldenhauer also couldn’t meet a series of deadlines for getting the casino built and operational. Work on the entire $50 million project eventually stalled amidst the legal wrangling and liens placed against the project by the primary contractor. After the Gaming Control Board revoked Moldenhauer’s gaming license, the Racing Commission appeared ready to take similar action on his racing license. Moldenhauer and his attorney, Sam Bregman, then asked that an independent hearing officer be appointed to hear testimony and evidence in the case. Bregman didn’t attend the Racing Commission meeting at which the commission ruled Moldenhauer no longer had a license and it was left to Moldenhauer to argue his case. Bregman was absent, said Moldenhauer, because he was tied up with a jury trial. Moldenhauer argued that either the Racing Commission or hearing officer should have conducted a disciplinary hearing. That, he said, never happened. ``The hearing officers’ report indicates there was no disciplinary hearing and no disciplinary action has been taken, if that was the purpose of this whole exercise in the first place,’’ Moldenhauer told the Racing Commission. ``The point is that the matter was referred to a hearing officer to hold a disciplinary hearing. I’m quite confused because as far as I’m concerned, the commission should have been holding a disciplinary hearing on whatever issues were raised. That hasn’t happened.’’ Fowler countered by saying the Racing Commission was ready to proceed with a disciplinary hearing last summer but Bregman and Moldenhauer put a halt to that by asking for a hearing officer. ``We were literally stopped by your attorney,’’ Fowler told Moldenhauer. ``He demanded that we go out and get a hearing officer.’’ In the end, the commission decided the issue of a disciplinary hearing was moot. Said Maestas: ``While it is common knowledge that you did not meet the conditions of your license, mainly obtaining a license to operate gaming machines from the (Gaming Control Board) and conducting live horse racing beginning the weekend of memorial day, 2010, the Racing Commission did not need to reach that conclusion. There is no justification for finding a violation of a license that is no longer valid.’’ Moldenhauer said he remained ``ready, willing and able,’’ to go forth with the Raton track. He said he was ready to deposit $10 million into a bank account and had discussed the process with a Raton bank. ``We’re here, ready to put the money up, clear liens, get a racetrack open if that is what this commission truly wants,’’ Moldenhauer said. Fowler said the current Racing Commission is committed to having another racino built and he expects plenty of applicants to line up. ``There’s going to be a license,’’ said Fowler. ``I can’t tell you when, I can’t tell you where. Whether it be Raton, or Tucumcari, or Gallup or Clovis. Maybe Santa Fe comes back into the picture.’’ One group that is ready to re-apply is headed by Albuquerque car dealer Don Chalmers. Chalmers has partnered with the city of Tucumcari and Quay County and the group was among those who applied for the license that eventually was awarded to Moldenhauer. Warren Frost, the executive director of the Quay County Gaming Authority, was at the Racing Commission meeting and said before the commission issued its decision that Chalmers’ group is gearing up for another run at the license. ``We’re just waiting for the opportunity to apply,’’ Frost told SureBet. ``We are doing a new development agreement between Chalmers and the city of Tucumcari. We have renewed all of our options on the land, and we’re updating all of our financial information. We’re doing everything we need to do to be ready to go. We’re more enthusiastic than ever.’’ Fowler has been a proponent of more racing in the northern half of New Mexico and hasn’t changed his position on that point. ``We have less than 100 days,’’ Fowler said of racing dates at SunRay Park in Farmington and Albuquerque. ``Down south, we’ve got close to 200.’’ When Moldenhauer was awarded the license, there was consensus within the Racing Commission that the northeastern New Mexico city was the best location. Now, it could be a brand new ball game. ``At this point,’’ said Fowler, ``we have to have an open mind and see what’s best for horse racing in New Mexico. When we made the decision to go to Raton, that was the best decision for racing in New Mexico. Now, it’s what’s going to be most beneficial for racing people in this state. We’ve got to look at all the possibilities.’’