Keeneland license for Corbin racetrack on hold

The Kentucky Horse Racing Commission was forced to table consideration of a license for Keeneland to operated a horse racing track in Corbin following a Floyd Circuit Judge’s ruling on lawsuit challenging the move Tuesday morning.

Keeneland’s plans for a $30 million quarter horse track and “historical wagering” gambling parlor in Corbin, to be called “Cumberland Run,” are now up in the air after a temporary restraining order was issued by Floyd Circuit Judge Johnny Ray Harris. County attorney Keith Bartley had filed the lawsuit against the KHRC Monday on behalf of Floyd County and Appalachian Racing, which owns a harness racing track in Prestonsburg. In it he is requesting that Keeneland be forced to assume the Prestonsburg license, and the $2.2 million worth of bonded indebtedness that goes with it, instead of being given an unassigned ninth license for its Corbin facility.

Originally, Keeneland had been negotiating with Floyd County for the license to its harness track. Keeneland’s facility in Corbin was going to be called Thunder Gap. The harness track in Prestonsburg is called Thunder Ridge.

But that changed when Keeneland decided to change the name of its facility and opted instead go for the open license.

Corbin Economic Development Director Bruce Carpenter said Keeneland felt that going for the open license was a “better and cleaner” option, and remained confident that the project would continue as planned.

“Anytime you have a project like this, are some hurdles and roadblocks. I remain steadfast that it will move forward,” he said.
Keeneland is not a party to the lawsuit.

The KHRC had asked the Kentucky Court of Appeals to intervene and lift the temporary restraining order so it could act on the license request from Keeneland Tuesday, but the appeals court decline the request, saying board would likely prevail on it’s own.

Floyd County and Appalachian Racing want a permanent injunction issued against the KHRC that would prevent the board from granting Keeneland the license. A hearing on the matter is set for Jan. 12.

Bartley has argued that the KHRC must take into account the financial impact its actions would have on Floyd County. He said if Keeneland gets the license without having to pay off the county’s debt, it would be devastating to the county.

Kentucky House of Representatives Speaker Greg Stumbo (D-Prestonsburg) has pre-filed legislation that would essentially force Keeneland to take the Prestonsburg license if it wants to operated a facility in Corbin.