State legislators join calls for Henrico gambling parlor project to be withdrawn

HHR1

A rendering of the gambling facility that Churchill Downs is planning at the Staples Mill Shopping Center at Staples Mill Road and Glenside Drive. (County documents)

Henrico supervisors’ opposition to a planned horse-betting parlor has the backing of the county’s state legislative delegation.

A letter signed by the eight members who represent Henrico in the Virginia General Assembly calls on the CEO of Churchill Downs Inc. to withdraw the company’s plan for a casino-like parlor with “historical horse racing” game machines at Staples Mill Shopping Center.

The July 16 letter is addressed to CEO Bill Carstanjen, who leads the company that runs the Kentucky Derby and owns the Colonial Downs racetrack in New Kent County and the seven Rosie’s Gaming Emporium parlors across Virginia. Churchill Downs submitted the Henrico plan via its Richmond-based Colonial Downs Group LLC.

“We are writing to express our unequivocal opposition to the Colonial Downs Group and Rosie’s Gaming Emporium’s proposal to convert part of the Staples Mill Shopping Center into a new gambling facility and casino-like parlor,” the letter reads.

“This proposal was submitted before new zoning rules took effect, thus circumventing the public process that Henrico was in the midst of implementing. This project, which includes the installation of 175 historical horse racing machines, has the potential to bring about undesirable changes to our community.”

The letter continues: “As state legislators, we are committed to advocating for the best interests of our constituents. Allowing this project to proceed without proper scrutiny and public input would be a disservice to the people we represent. We call on the Colonial Downs Group and Rosie’s Gaming Emporium to withdraw its application.”

The letter is signed by Sen. Schuyler VanValkenburg, whose office distributed it, as well as by Sens. Lamont Bagby and Lashrecse Aird and by Dels. Delores McQuinn, Hyland (“Buddy”) Fowler Jr., Rodney Willett, Destiny LeVere Bolling and David Owen.

The opposition joins that of Henrico Supervisor Dan Schmitt, whose Brookland District includes the planned location. At a recent board meeting, Schmitt publicly denounced the company’s timing in light of the zoning rules update that had been underway since May, and said his four fellow supervisors likewise oppose the move.

HHR2

An aerial view of the venue, which would be housed between a Subway restaurant and Virginia ABC store.

The company submitted its plan a week before the board voted late last month to update zoning rules to require that all gambling facilities proposed in the county must obtain a provisional-use permit, a process that involves board approval and a public hearing.

Schmitt contends that Churchill Downs knew the rule change was coming and submitted its plan when it did to circumvent the review process and chance for public scrutiny. Because it was submitted before the change, the plan is considered “grandfathered” and exempt from the permit requirement.

Churchill Downs has declined to comment on the project, which a spokesperson described as in a preliminary stage. The spokesperson did not respond to an email Tuesday asking if the legislators’ letter had been received and if the company had a response.

The 25,000-square-foot facility is set to fill a vacant space between the Virginia ABC store and Subway restaurant in the shopping center’s main building at Staples Mill Road and Glenside Drive. In addition to the gaming machines, the venue would include a restaurant and bar.

The property’s B-2 business district zoning has allowed historical horse racing machines as a by-right use with a maximum of 175 machines. More than that would require a provisional-use permit from the county, though the recent rules change requires a PUP regardless of the number of machines.

VanValkenburg, whose office said he led the bipartisan effort, described the letter as being needed in light of Churchill Downs’ actions.

Sen. Schuyler VanValkenburg

Sen. Schuyler VanValkenburg

“A huge part of it is the way it went down with the county by beating the process of it,” the senator said. “I would prefer that it not be in our county at all – that’s my personal position on those kinds of facilities, not just Rosie’s but any gambling entity like that – but also the county has been clear that they didn’t want it.

“The legal argument they make is they have it by right, and I think under state law that that might be correct. But there was also a previous owner that said, ‘Yeah, we might have this under law but if we’re not wanted, we won’t come,” he said, referring to a previous proposal to locate the venue near the Top Golf in Henrico’s Westwood area.

“The idea that Henrico was saying, ‘Wait, we don’t really want this,’ and then Henrico was in the process of changing how it handles those types of things and they tried to get things in under the wire, I think both the process and the substance are problematic.”

VanValkenburg said Tuesday he hadn’t received a response but that he’s been in touch with Churchill Downs’ local representatives, to let them know the letter was coming and also to ask that they do what Henrico is asking.

“I don’t think any of us are in the posture where we want it to be a confrontational thing. I think we’d rather they withdraw the proposal and allow Henrico to finish the process it’s on in updating its ordinances and then move forward from there,” he said. “I think we’re pretty unified in the sense that the process was wrong, and I think there’s a pretty strong majority around the idea that we’d rather not have a mini-casino in a strip mall, particularly in that location but really anywhere.

“The fact that you have local government and the state delegation for that local government all asking you to not do something because we’d like you to respect the locality’s wishes, and to have them just say, ‘We don’t care,’ I think is pretty problematic and disrespectful,” VanValkenburg said. “Just because you can do something doesn’t mean you should.”

The Virginia Racing Commission in 2018 awarded Colonial Downs Group licensing for 600 historical horse racing game machines at the reopened New Kent racetrack and 700 at the Richmond Rosie’s on Midlothian Turnpike. The Rosie’s in South Richmond, which opened in 2019, is one of seven opened so far across Virginia. Churchill Downs Inc. acquired Colonial Downs Group in 2022.

HHR1

A rendering of the gambling facility that Churchill Downs is planning at the Staples Mill Shopping Center at Staples Mill Road and Glenside Drive. (County documents)

Henrico supervisors’ opposition to a planned horse-betting parlor has the backing of the county’s state legislative delegation.

A letter signed by the eight members who represent Henrico in the Virginia General Assembly calls on the CEO of Churchill Downs Inc. to withdraw the company’s plan for a casino-like parlor with “historical horse racing” game machines at Staples Mill Shopping Center.

The July 16 letter is addressed to CEO Bill Carstanjen, who leads the company that runs the Kentucky Derby and owns the Colonial Downs racetrack in New Kent County and the seven Rosie’s Gaming Emporium parlors across Virginia. Churchill Downs submitted the Henrico plan via its Richmond-based Colonial Downs Group LLC.

“We are writing to express our unequivocal opposition to the Colonial Downs Group and Rosie’s Gaming Emporium’s proposal to convert part of the Staples Mill Shopping Center into a new gambling facility and casino-like parlor,” the letter reads.

“This proposal was submitted before new zoning rules took effect, thus circumventing the public process that Henrico was in the midst of implementing. This project, which includes the installation of 175 historical horse racing machines, has the potential to bring about undesirable changes to our community.”

The letter continues: “As state legislators, we are committed to advocating for the best interests of our constituents. Allowing this project to proceed without proper scrutiny and public input would be a disservice to the people we represent. We call on the Colonial Downs Group and Rosie’s Gaming Emporium to withdraw its application.”

The letter is signed by Sen. Schuyler VanValkenburg, whose office distributed it, as well as by Sens. Lamont Bagby and Lashrecse Aird and by Dels. Delores McQuinn, Hyland (“Buddy”) Fowler Jr., Rodney Willett, Destiny LeVere Bolling and David Owen.

The opposition joins that of Henrico Supervisor Dan Schmitt, whose Brookland District includes the planned location. At a recent board meeting, Schmitt publicly denounced the company’s timing in light of the zoning rules update that had been underway since May, and said his four fellow supervisors likewise oppose the move.

HHR2

An aerial view of the venue, which would be housed between a Subway restaurant and Virginia ABC store.

The company submitted its plan a week before the board voted late last month to update zoning rules to require that all gambling facilities proposed in the county must obtain a provisional-use permit, a process that involves board approval and a public hearing.

Schmitt contends that Churchill Downs knew the rule change was coming and submitted its plan when it did to circumvent the review process and chance for public scrutiny. Because it was submitted before the change, the plan is considered “grandfathered” and exempt from the permit requirement.

Churchill Downs has declined to comment on the project, which a spokesperson described as in a preliminary stage. The spokesperson did not respond to an email Tuesday asking if the legislators’ letter had been received and if the company had a response.

The 25,000-square-foot facility is set to fill a vacant space between the Virginia ABC store and Subway restaurant in the shopping center’s main building at Staples Mill Road and Glenside Drive. In addition to the gaming machines, the venue would include a restaurant and bar.

The property’s B-2 business district zoning has allowed historical horse racing machines as a by-right use with a maximum of 175 machines. More than that would require a provisional-use permit from the county, though the recent rules change requires a PUP regardless of the number of machines.

VanValkenburg, whose office said he led the bipartisan effort, described the letter as being needed in light of Churchill Downs’ actions.

Sen. Schuyler VanValkenburg

Sen. Schuyler VanValkenburg

“A huge part of it is the way it went down with the county by beating the process of it,” the senator said. “I would prefer that it not be in our county at all – that’s my personal position on those kinds of facilities, not just Rosie’s but any gambling entity like that – but also the county has been clear that they didn’t want it.

“The legal argument they make is they have it by right, and I think under state law that that might be correct. But there was also a previous owner that said, ‘Yeah, we might have this under law but if we’re not wanted, we won’t come,” he said, referring to a previous proposal to locate the venue near the Top Golf in Henrico’s Westwood area.

“The idea that Henrico was saying, ‘Wait, we don’t really want this,’ and then Henrico was in the process of changing how it handles those types of things and they tried to get things in under the wire, I think both the process and the substance are problematic.”

VanValkenburg said Tuesday he hadn’t received a response but that he’s been in touch with Churchill Downs’ local representatives, to let them know the letter was coming and also to ask that they do what Henrico is asking.

“I don’t think any of us are in the posture where we want it to be a confrontational thing. I think we’d rather they withdraw the proposal and allow Henrico to finish the process it’s on in updating its ordinances and then move forward from there,” he said. “I think we’re pretty unified in the sense that the process was wrong, and I think there’s a pretty strong majority around the idea that we’d rather not have a mini-casino in a strip mall, particularly in that location but really anywhere.

“The fact that you have local government and the state delegation for that local government all asking you to not do something because we’d like you to respect the locality’s wishes, and to have them just say, ‘We don’t care,’ I think is pretty problematic and disrespectful,” VanValkenburg said. “Just because you can do something doesn’t mean you should.”

The Virginia Racing Commission in 2018 awarded Colonial Downs Group licensing for 600 historical horse racing game machines at the reopened New Kent racetrack and 700 at the Richmond Rosie’s on Midlothian Turnpike. The Rosie’s in South Richmond, which opened in 2019, is one of seven opened so far across Virginia. Churchill Downs Inc. acquired Colonial Downs Group in 2022.

This story is for our paid subscribers only. Please become one of the thousands of BizSense Pro readers today!

Your subscription has expired. Renew now by choosing a subscription below!

For more informaiton, head over to your profile.

Profile


SUBSCRIBE NOW

 — 

 — 

 — 

TERMS OF SERVICE:

ALL MEMBERSHIPS RENEW AUTOMATICALLY. YOU WILL BE CHARGED FOR A 1 YEAR MEMBERSHIP RENEWAL AT THE RATE IN EFFECT AT THAT TIME UNLESS YOU CANCEL YOUR MEMBERSHIP BY LOGGING IN OR BY CONTACTING [email protected].

ALL CHARGES FOR MONTHLY OR ANNUAL MEMBERSHIPS ARE NONREFUNDABLE.

EACH MEMBERSHIP WILL ONLY FUNCTION ON UP TO 3 MACHINES. ACCOUNTS ABUSING THAT LIMIT WILL BE DISCONTINUED.

FOR ASSISTANCE WITH YOUR MEMBERSHIP PLEASE EMAIL [email protected]




Return to Homepage

POSTED IN Government

Editor's Picks

Subscribe
Notify of
guest

15 Comments
oldest
newest most voted
Inline Feedbacks
View all comments
Brian Ezzelle
Brian Ezzelle
5 months ago

Governments, politicians, and bureaucrats use loop holes and technicalities to screw over citizens and businesses all the time. This time a business beat them at their own game and they are crying foul. And I say that as somebody who detest gambling and casinos.

David Browne
David Browne
5 months ago
Reply to  Brian Ezzelle

Amen, Brian. I have zero interest in gambling parlors like the one proposed. In fact I think it would be a blight and a magnet for other problems. But that isn’t the issue here. Churchill Downs was probably planning for this well before the board announced the proposed zoning change (on May 9, I believe), and they followed the law. Laws that I will again point out were passed by the Henrico Board of Supervisors and the Virginia General Assembly, with public notice and hearings at the time. They and their counsel evaluated their options and the course they took… Read more »

Blair Archibald
Blair Archibald
5 months ago
Reply to  David Browne

Henrico has been updating their comprehensive plan for the last three years and zoning changes are an inevitable part of implementing the goals and policies outlined in a comp plan. This was not a surprise to anyone and Churchill Downs knew they were up against a clock.

Just because you can, doesn’t mean you should. But I’m talking as a human being in the community and not as a business with the sole purpose of increased quarterly profits.

David Browne
David Browne
5 months ago

“Just because you can, doesn’t mean you should” are words that lawmakers and other government officials, including every single one quoted in the articles on this topic, willfully ignore on a regular basis. I have zero sympathy for them.

Chuck Davidson
Chuck Davidson
5 months ago
Reply to  David Browne

Like voting on the actual issue and not just with the party?

Craig Davis
Craig Davis
5 months ago
Reply to  David Browne

Maybe no sympathy is warranted for the politicians but what about the other businesses and residents in close proximity….

Polgar Concertado
Polgar Concertado
5 months ago
Reply to  Craig Davis

My guess is the Subway, the vape shop, and the Dollar Tree are all pretty excited about the prospect of more traffic in the shopping center.

Chuck Davidson
Chuck Davidson
5 months ago

These facilities have been around for many (OTB, etc. since 90’s) years, nothing related to a new Master Plan or zoning related to it’s implementation.

Chuck Davidson
Chuck Davidson
5 months ago
Reply to  David Browne

Yep, always reactive and not proactive. Squeaky wheel.

Chuck Davidson
Chuck Davidson
5 months ago
Reply to  Brian Ezzelle

Well stated.

Polgar Concertado
Polgar Concertado
5 months ago

Another strongly worded letter from a politician…. VanValkenburg is just covering his rear because his office got some calls from some angry constituents.

Churchill Downs followed the law, and there is zero incentive for them to back out now since the county has made it 100% crystal clear they are not wanted anywhere in Henrico, and a PUP would never get approved under the new zoning rules.

Chuck Davidson
Chuck Davidson
5 months ago

Exactly. “We promise” it will be fair. DENIED. Do these politicians think we’re all stupid? If there was an Ordinance to raise taxes, would you wait until after approved to, “play fair” and pay more? This is utter nonsense. As stated previously, these uses aren’t new. If such an issue, why so many years later? Richmond amended their code when the privatization of ABC stores was a topic many years ago. They were keenly aware of potential issues around the use. Got to stay ahead of the curve, not knee-jerk. And, what was the knee-jerk impetus to suddenly, after all… Read more »

Chuck Davidson
Chuck Davidson
5 months ago

Based on these statements, it appears the proposed zoning change would be created to install the public process that would lead to an automatic denial under the new rules. I wonder how these same elected officials voted on other gambling venues proposed in other locations around the Commonwealth? These types of establishments have been around for quite some time, so why a sudden amendment just now? Sounds like a rumor was heard and it created the race to the finish line. Does just the filing of a permit automatically result in such grandfathering?

Michael Morgan-Dodson
Michael Morgan-Dodson
5 months ago
Reply to  Chuck Davidson

Actually really good point Chuck; after the 1st vote by City voters to say NO to the RVA casino but many of these politicians opposed to this in Henrico supported it in Richmond. So voters say no in a referendum and you support/endorsed a YES second vote that was allowed under state law in the City. Luckily voters killed again. But an application that is allowed by right and grandfathered, but the area is pending a zoning change that would amend the process, well you want to ensure the will and intent of Henrico voters is upheld but once said… Read more »

Chuck Davidson
Chuck Davidson
5 months ago

Maybe BizSense checks statements and voting records on all of these elected brainiacs.