The Maine Harness Horsemen’s Association and Scarborough Downs are at an impasse over current contract negotiations, according to Joseph Molnar, president of MHHA.

Scarborough Downs is no longer depositing purse money into the horsemen’s trust account, an account established 18 months ago through an agreement with the Maine State Harness Racing Commission, to protect horsemen/women’s purse payments, Molnar says.

In a prepared statement issued by Craig Rancourt, legal counsel for the MHHA, Molnar said the assocation’s last contract with Scarborough expired on June 21.

“An MHHA negotiating committee has been working since last winter to finalize a new contract that would continue to provide for the economic interests and working conditions of Maine horsemen and women as well as deal with a significant safety issue at the Downs,” Molnar said.

Molnar said the safety issue at Scarborough Downs pertains to its hub rail, the only Maine track which still has one.

The MHHA has offered to work with Scarborough Downs in a planned construction program by loaning money from its purse account, with the permission and approval of the MSHRC, to remove the present hub rail and replace it with a pliable pylon system which would eliminate the danger of serious accidents to both driver and animal. However, the Downs and the MHHA negotiators ha

However, Scarborough Downs is taking a different position on the issue. The Downs has offered to replace the hub rail at no expense to the MHHA and has begun the process of obtaining bids for the work in September, said Sharon Terry, president of Davic Maine Corp, owners of Scarborough Downs.

MHHA figures put the cost at about $10,000 and The Downs has agreed to absorb those costs and complete the project by next year, she said.

And Scarborough Downs has made it clear to the MHHA that it will match any contract that has been, or is being, negotiated by the MHHA with any of its competitors, including Bangor Raceway, Terry added.

Another issue, according to Molnar, is that Scarborough Downs has requested the MHHA grant the Downs the authority to borrow an estimated $430,000 in purse supplement money from the horsemen’s trust account that is specifically earmarked for purses. Scarborough Downs has refused to provide the MHHA with a financial plan outlining how the money would be spent or a current audited financial statement for Scarborough Downs’ operations, according to Molnar.

“Keep in mind that it was only two years ago that horseme

“Keep in mind that it was only two years ago that horsemen waited for four to six weeks for purse checks and at times they would bounce. We are not willing to return to that type of system. Since the purse account was placed in trust, horsemen have not had those problems,” Molnar said.

Terry said she believes that no other Maine racetrack, except Scarborough Downs, is forced to set future purse money aside in a trust account. Terry said that although there is no rule or requirement by Maine law or the racing commission, Scarborough Downs will continue to set money aside in such an account.

Terry said that every other Maine track “borrows” all of the money that may be used for future purses, interest free. Only The Downs offers to provide the guarantee of its stockholders that money to be used for purses will be used for purses and that Joe Ricci, owner of Scarborough Downs, has never borrowed, and does not propose, to borrow money from the trust account.

The Downs requested only that it be allowed to use for the Downs’ operating cash flow trust account money not yet needed to pay purses, according to Terry. Scarborough says the MHHA claim that the amount is $430,000 when the actual amount is an estimated $270,000 and the MHHA has already agreed to lend The Downs an estimated $135,000. The Downs, in turn, has agreed to pay 10 percent on money borrowed.

A final negotiable item in the Scarborough Downs contract is that The Downs wants horsemen/women to share in the costs of satellite time for simulcasting. This demand could cost horsemen/women more than $100,000 per year from the purse account.

“Unless he gets his own way. Ricci says he will sign with an out-of-state horsemen’s association rather than negotiate in good faith with Maine horsemen and women,” Molnar said.

Terry says the MHHA had audited financial statements for the Downs which confirms the track has lost millions over the years and continues to do so. The Downs has never had a “break-even” year, according to Terry, nor will it in 1996. Scarborough Downs has withdrawn its request that purses be reduced to pay for one-half of the satellite hookup costs, according to Terry.

The Downs requested only that tracks voluntarily contribute to the purse account from out-of-state wagers after satellite costs. Terry said complying with that regulation would cost the purse account at most $10,000 not $102,000.

The MHHA has called for general membership meetings to discuss contract problems at the grandstand at Cumberland Raceway on July 8 and Bangor Raceway on July 9. Both are at 6 p.m.