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Saturday, May 02, 2009
Racino License Request Tabled
By Charles D. Brunt
Journal Staff Writer
The New Mexico Gaming Control Board tabled a request Friday for a gaming license for the planned horse racing track and casino in Raton until investors provide more information about their finances and their ability to pay for the $50 million racino.
In a specially called meeting, the five-member panel tabled approval of Racing at Raton LP's gaming license application, citing "deficiencies" in the application by Canadian investor Michael Moldenhauer and his partner, Marc A. Correra of Santa Fe.
Board chairman David L. Norvell urged the applicants to address the deficiencies with Gaming Control Board staff as quickly as possible and said the board is willing to call another special meeting to reconsider the license application.
Because of notification requirements, the earliest a special meeting could be convened would be May 11 — less than six weeks before the track's planned ground breaking.
"They have not provided us with (updated) financial statements of the individual investors," Norvell said after the meeting. "We're requiring that they do provide those to us, up through at least December 31st of last year.
"They have not provided us with sufficient indication that they're going to be able to fund this project," Norvell said. "I believe that we're going to require that they deposit into the company account an amount sufficient to fund the first phase of the project, which is going to be somewhere in the neighborhood of $10 (million) to $12 million."
Once that deposit is made, Norvell said, he believes the racino's long-term financier, Wells Fargo, "is probably going to be able to give us a letter of commitment that they will fund the second phase."
Moldenhauer, a Toronto-area developer, and Correra, an investor with ties to Gov. Bill Richardson, beat out three other groups who vied for the state's sixth and, for the foreseeable future, final racino.
Correra, although he has not been accused of any wrongdoing, has drawn attention in New Mexico after sharing in $11.5 million in third-party marketer fees paid by recipients of state investment business.
Third-party fees are at the heart of a pay-to-play investigation under way in New York regarding state pension funds.
Correra is the son of Anthony Correra, a Richardson campaign contributor who served on governor's transition team. Anthony Correra also served on the board of a Richardson political foundation. Marc Correra's wife, Claudia, once served as Richardson's international protocol officer.
When the state renegotiated its 2001 gaming compacts with casino-operating tribes in 2007, the state agreed to cap the number of racinos at six for the duration of the agreements, the year 2037.
Racing at Raton LP was granted a state racing license in January, but must acquire a state gaming license to operate its casino.
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