Raton Racino officially rejected

ALBUQUERQUE (AP) - The New Mexico Racing Commission has unanimously rejected an effort to revive a stalled racetrack and casino project in Raton.

Canadian investor Michael Moldenhauer, who has been trying to complete the $50 million project, offered Thursday to pay $10 million into a trust to continue construction, pay off liens placed against the property and pay the Racing Commission a $20,000 penalty for failing to get the facility built on time.

However, Racing Commission chairwoman Marty Cope said commission members had reviewed the proposal and were not inclined to support it.

"We were hoping that there would be something substantial in it," Cope said.

To operate in New Mexico, a so-called "racino" must have a gaming license and a racing license, issued by the Gaming Control Board and the Racing Commission, respectively.

Both panels have expressed concerns about Moldenhauer's failure to deliver on promises to get the facility built and conduct live race meets.

Albuquerque attorney Sam Bregman spoke for Moldenhauer. Flanked by several Raton residents, Bregman protested the commission's chilly reception.

"He's willing to put $10 million in the bank, and you guys say no? That's crazy," Bregman said.

Bregman told the five commissioners that Moldenhauer's investment team had worked over the past two weeks with the New Mexico Attorney General's Office to reach an agreement that would be acceptable to the developer and the state.

"We ask that you agree with that proposal so that we can get on with building a racetrack," Bregman said.

Cope said commissioners had been unaware that Assistant Attorneys General Scott Fuqua and Cholla Khoury had been working with Bregman on a proposed settlement until news of the negotiations was published Wednesday in an Albuquerque Journal article.