State racing panel postpones racino hearing set for today Bangor harness racing license talks to wait until after election

BANGOR – The Maine Harness Racing Commission has agreed to postpone a hearing set for today during which Bangor Raceway’s live harness racing license would have been considered.

However, the agreement to postpone the hearing came with strings attached, namely a series of conditions the applicant must meet.

Thursday’s hearing, originally set for June, was rescheduled for November at the request of Bangor Historic Track, which operates the city-owned track, and Nevada developer Shawn Scott and his company, Capital Seven LLC. Scott is a major stockholder of Bangor Historic Track.

Scott needs a parimutuel racing license to carry out his plans for Bass Park. In a June referendum, Bangor voters approved the operation of slot machines in the city, a necessary permission for the racino. Scott also must strike a development deal with the city and win approval for slot machines at a statewide referendum Nov. 4.

Although the City Council’s deadline for the development agreement expired May 1, representatives from the city and the developer say negotiations are still under way and are nearing completion.

Scott, a Nevada businessman and his development company, Capital Seven LLC, approached the city of Bangor last fall with a proposal to develop a $30 million gaming and entertainment complex at city-owned Bass Park.

The proposed “racino,” industry jargon for a racetrack with slot machines, was promoted as a way to bolster the struggling sport of harness racing with an injection of revenue from slots.

Currently a 49 percent owner of BHT, the company that operates the racetrack, Scott has an option on the remaining 51 percent that he apparently has yet to execute.

To that end, the conditions for postponing Thursday’s hearing included the following requirements that:

. BHT submit a new license application for the 2004 racing season accurately reflecting the percentage ownership of Scott, Capital Seven and any other entities Scott owns;

. Scott be treated as majority owner for purposes of the investigation and hearing, whether or not he acquires legal or equitable interest in more than 50 percent of the track’s stock;

. If Scott does execute his option on the rest of the BHT stock, BHT’s conditional 2003 license would be revoked, BHT would have to file a new application reflecting new ownership and the commission would issue a new conditional license for the rest of the year, retroactive to today;

. Scott’s licensing suitability for 2003 and 2004 will be addressed during the November hearing. Bangor’s 2003 racing season is over, but the track is licensed on a year-to-year basis so, technically, the 2003 license is still in effect, although it will not be used again;

. BHT and Scott continue to comply with requests for information;

. Scott and Capital Seven cover the costs of the background investigation as well as travel to Nevada to review documents at Scott’s corporate offices.

Martin J. Gersten, Scott’s Connecticut-based legal counsel, said that the conditions were negotiated and Scott intended to comply with them.

The hearing was rescheduled for the week of Nov. 10, the week after the Nov. 4 statewide referendum during which voters will decide if slot machines should be allowed at the state’s commercial harness racing tracks.

Bangor Historic Track now holds a conditional license for 2003, pending the results of a state-mandated background check.

The investigation’s purpose 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.”

Scott and his associates say the project would create hundreds of jobs and generate an estimated $75 million in annual revenue, 25 percent of which would go to the state for agricultural, social service and education programs.