Judge: State must act on racino request

An Albuquerque judge ordered the New Mexico Racing Commission to act within 90 days on whether to accept or reject Coronado Partners’ request for a racing license so it could build a track and casino in Tucumcari.

District Court Judge Nancy Franchini in a ruling issued Friday afternoon affirmed Logan attorney and Coronado Partners principal Warren Frost’s request for a writ of mandamus against the commission. A writ of mandamus asks a court to compel another entity to perform its official duties.

Franchini rejected arguments from commission director Ismael “Izzy” Trejo during a hearing last month that the commission could not award the sixth remaining horse-racing license because of a variety of issues, including the fragility of the thoroughbred and racing industries in New Mexico.

“Mr. Trejo’s opinion that ‘it just isn’t the right time’ to consider and application for the sixth racetrack license does not affect the NMHRC’s duty to issue a decision on the Petitioner’s application,” Franchini wrote in her eight-page ruling.

Frost said he was pleased with Franchini’s decision.

“The Commission can chose to issue us a license or deny it,” Frost wrote in email, “although we are ready for them to issue us a license so that we can build the racetrack, we have been through this too many times. We will hope for a license but should assume they will deny it.

“The important thing at this point is that if they deny the license, we can then appeal that decision to Judge Franchini. If she finds that the Commission’s reasons for denying the license are invalid, she can order them to issue us a license.”

Frost said the writ applies only to the Coronado Partners application, but he noted the commission could opt to evaluate other license applications from Clovis and Lordsburg.

“It’s been three years; I don’t know if the other applicants are still interested in pursuing their applications,” Frost wrote.

Frost filed his writ petition in December after Coronado Partners filed a revised application with the commission.

Trejo, reached by email on Friday, said he would decline to comment until he read the judge’s ruling.

Coronado Partners proposes a so-called racino on Tucumcari’s east side that would employ at least 500 people and generate up to $55 million in revenue by 2025.

The commission had planned to award a license in late 2019, but that was derailed by an injunction by the Lordsburg applicant.

The commission had planned to discuss and possibly act on a license in April 2020, but newly elected governor Michelle Lujan Grisham fired the commissioners and replaced them before the meeting took place.

The issue of a sixth license never was placed on the new commission’s agenda until January this year, after Frost filed his petition.

Trejo testified during the hearing last month the sixth license was “put way down on the priority list” due to more pressing issues. He said since mid-2019, it had operated with a full commission for only five months after two commissioners were replaced and another died.

Trejo also said the commission also was dealing with the COVID-19 pandemic, lawsuits, a U.S. Supreme Court ruling that legalized sports betting nationwide and federal Horse Racing Integrity & Safety Act that takes effect next month.

He said the U.S. racing industry in general is dealing with a decline in the number of thoroughbreds, which has dropped by 50% since 2000.

Trejo said he has not discussed a sixth license with the commission and has advised it to “hold off on starting the process over again.” He said it may “take a year or two” to order another feasibility study on a sixth license and was resistant to award one.

“To issue a license like that is negligent to the industry,” Trejo testified. He later said a sixth license would have “negative ramifications” to New Mexico horse racing.