Deal likely for racino developer information

BANGOR – A tentative compromise has been struck regarding a dispute over release forms the state Attorney General’s Office requested as part of its probe into the Nevada developer who wants to build a $30 million racetrack-casino at Bass Park.

At issue was whether Shawn Scott complied with requests for releases that Assistant Attorney General John Richards said he needed to obtain investigative records in Nevada, Louisiana and New York, where Scott has done business.

Richards alleged the releases had not been provided, and that Scott repeatedly delayed and prevented an investigation into his suitability to own and license a racing venue in Bangor.

The purpose of the investigation is to comply with state law governing harness-racing licensing, which requires that applicants and their associates and creditors be of “good moral character” and that applicants be “financially responsible.”

A hearing before the Maine Harness Racing Commission is set for Friday in Augusta to consider Bangor Historic Track Inc.’s application to conduct live harness racing and the conditional license it received Jan. 31. Scott is a part owner of Bangor Historic Track, which operates the city’s harness-racing facilities at Bass Park.

Attorney Christopher Howard of the Portland law firm Pierce Atwood, Scott’s legal counsel, said Scott did, in fact, provide the information Richards wanted, though not in the form that Richards wanted.

He said that Richards wanted Scott to promise not to pursue legal action against any of the officials in the three states over information they might provide Maine as part of the licensing process.

Howard said Scott did not see that as necessary to the investigation and expressed concern that the releases Scott was asked to sign essentially required Scott and his affiliates to allow access, copying and public disclosure of “literally all records of any nature,” including personal records unrelated to his gaming operations.

Howard responded with a formal objection alleging that Richards’ petition contained inaccuracies pertaining to the conduct of Scott, his company, Capital Seven, and state staff concerning the releases, the status of Scott’s racing license in New York, and his licensing history in Louisiana and Nevada.

He further argued that the “misrepresentations evidence a clear and inappropriate bias against Bangor Historic Track, Capital Seven and Scott” and that the near simultaneous filing of the petition and issuance of the hearing notice may constitute a violation of BHT and Capital Seven’s due process rights.

The apparent compromise was the result of a telephone conference late last week involving legal counsel for Scott, the Attorney General’s Office, the city of Bangor and a representative of the state Department of Agriculture.

According to the order negotiated during the teleconference, Scott will:

. Provide a release to the state of Nevada with the release and indemnification language that state requires.

. Submit a release or request to New York authorities to obtain copies of all information that state generated in its licensing investigation and provide whatever documentation is needed to allow officials there to discuss the investigation with agents of the Maine Harness Racing Commission.

. Have his legal counsel work with Richards to obtain all information related to the investigation in Louisiana, which Scott’s attorneys said does not require releases.

The order directs the parties involved to report on their compliance during the June 6 session in Augusta.

Scott intends to comply with the order, according to Daryn Demeritt, communications director for Pierce Atwood Consulting, a division of the Portland law firm representing Scott in Maine.

Scott needs a parimutuel racing license, among other things, to carry out his plans to develop a $30 million entertainment complex at city-owned Bass Park. He also must strike a development deal with the city and win approval for slot machines at a citywide referendum Tuesday and a statewide vote Nov. 4.

Last fall, Capital Seven approached Bangor with a proposal to develop a “racino,” a racetrack with slot machines. The idea is to bolster harness racing, which has been struggling, with revenue from slots.

Scott and his associates say the project would create hundreds of jobs and generate an estimated $75 million in annual revenue, one-fourth of which would go to the state for agricultural, social service and education programs.