11-18-2024 12:04am

Will WCAS Rescind Its Eviction Notice To All Its Horse Boarders?

Beth Callahan Editor

Photo via Pexels.com

LEBANON, OH -- For years, the Warren County Fairgrounds has been a housing and training center for harness racing horses, which in turn has been an integral part of the area’s agricultural tradition and local economy. But all this could change, if the Warren County Agriculture Society doesn't rescind the eviction notices at Monday (11/18) night's WCAS meeting at 7PM.

Brief History

After its October 25, 2024 meeting, the WCAS emailed an eviction notice to all boarders giving them until Dec 1 of this year to move out. The reason given to discontinue harness racing training and boarding at the fairgrounds was due to "the financial burden it cause to the WCAS organization."

When word got out about the notice, Commissioner Tom Grossman began receiving emails and phone calls questioning if the WCAS had the right to do this, especially since the fairgrounds actually belongs to the county not the WCAS, who manages the grounds for the county.

Grossman, then, brought the matter up with Dave Young and Shannon Jones, the other two commissioners, at the October 29 meeting. It was during this meeting that it was discovered that the WCAS's 5-year renewable lease may have expired and had not been renewed, causing a default allowing the WCAS to be operating under the statutory directive that gives them the right to control and manage the fairgrounds.

During that meeting, county attorney Bruce McGary was able to find on his computer a lease that expired in 2013. "There would have been a renewal in 2018, and there would have been a renewal in 2023. We need to check our records and make sure that happened," he explained.

Also during this meeting, it was decided by the three commissioners to invite the WCAS to attend the November 12 meeting, which occurred last Tuesday.

November 12 Warren County Board of Commissioners Meeting

During the 2-hour meeting WCAS President Dana Letner shared with the commissioners how this decision was made and Scott Hagemeyer, Owner/Manager of Hagemeyer Farms, a Washington Township (Warren County Ohio) Trustee and a Director of The OHHA (Ohio Harness Horsemen Association) Board Breeders spoke on behalf of the evicted horsemen.

"We hope that in this discussion today, maybe, we can come up with some sort of solution, but we're financially at our wits end," Letner explained to the three commissioners.

In the financials that Letner shared with the Warren County Commissioners, it shows that while the WCAS will net approximately $200,000 from all the revenue it brings in, the horse boarding operation will cost them $150,000 a year, with the largest cost being the manure removal, which cost the WCAS $144,000.

Hagemeyer, on the other hand, explained the economic impact that the equestrian community has on the state of Ohio and the impact closing the training center would cause.

"Ohio is the number one state in America for harness racing. Nobody exceeds us. We offer more breeding opportunities and more racing opportunities than anywhere in the country," Hagemeyer said, adding, "We (Warren County) are the number 3 county in Ohio for equine population, which a large percentage of these horses come from harness racing."

"The OHHA has had a long standing partnership with the Ohio Farm Bureau, and it is well known that equine and agricultural go hand-in-hand in its economic impact in the State of Ohio of more than $2.8 billion," Hagemeyer noted, adding that in 2024 The OHHA began giving every Agricultural Society in Ohio that offers harness racing during their county fair $13,000, up from the $12,000 giving in previous years.

According to Hagemeyer, WCAS, between these yearly payments and two grants, has earned over $74,000 within the last five years from OHHA.

Hagemeyer also explained the important role the Warren County Fairgrounds' Stables play in Ohio Racino's and the monies the county receives from the Racino.

Ohio Racino's

The Lebanon Raceway was established in 1948 at the fairgrounds, but a joint venture of Churchill Downs Inc. and Delaware North Companies agreed in March 2012 to buy Lebanon Raceway from the Nixon and Carlo families for $60 million with the purchase being completed in December 2012. While the racetrack and licensed was moved to Miami Valley Racino in Turtlecreek Township, the Warren County Fairgrounds has been the home and training grounds for 300+ harness racing horses.

According to Hagemeyer, Warren County Fairgrounds training center is the largest Ag society harness-racing training center in the state and for it to just close would have a negative impact on many of the harness horses that race at the Racino.

"Within a one-hour drive from downtown Lebanon, there are no available training centers that could house these horses. So, if December 1st deadline comes to fruition, there is not space for these horses. It doesn't exit," Hagemeyer explained.

Grossman also brought up the importance that harness racing means to Ohio Racino's. "We make over $3 million some dollars a year on the (Miami Valley) Racino. Racino's must have harness racing to operate with their license, they must have harness racing.... They have to have the horses for harness racing, which are largely coming from our stable... so there is a synergistic relationship between us," Grossman said, adding later, "this county is making a lot of money on this."

Concerns

While the money is there to help subsides the barns and training center, Both Commissioner Jones and Commissioner Young shared some concerns.

"How is a business suppose to stay sustainable if the market rate is below what the actual cost is needed to run the business, since the business plan shows that they need to charge $200 a month, but the market rate is only $125 per month per stable... Why would you continue to take a $75 loss per stall?" Jones asked.

"I've heard you loud and clear that the volunteer board has said that they don't want to be in this business. You all have to decide under what circumstances you may be willing to be in this business, but I've heard you. You don't want to be in this business any longer and you get to decide that," Jones said.

Commissioner Jones concerns:

Is it right to use public funds (tax dollars) to support a private industry (harness racing)?
If the WCAS wants to get out of the business of boarding horses and having a training center, do the county commissioners have the right to make them stay in that business

Comissioner Young's concerns:

By the fairgrounds being in Lebanon's city limits, does a horse boarding operations become problematic?

"The relationship with a horse boarding operation inside of a city limit, is that problematic? ...I've heard something that there's higher restrictions or the groundwater stuff and runoff... generally horse boarding operations are not inside of city limit. Is that been a problem?" Young asked.

Fairgrounds Inside The City

While Young was asking Letner about the horse boarding within city limits, the commissioners were informed by Letner that she had just received an email from the city that morning asking to do a code inspection on the fairgrounds' property.

"On the day you guys 'the society' voted to tell everybody to leave by December 1st, did you also pass another resolution or/ and adopt something else related to the city of Lebanon?" Commissioner Grossman asked.

Letner said yes, explaining that WCAS did agree to have open dialogue with the city about future opportunities with the city along with dialogue with the county as they own the property.

WCAS Financials

Grossman, who has operated horse stables himself, offered a few suggestions to Letner that could help the WCAS re-coup some of its lost revenue and ways to save money.

Since the largest expense is manure removal, Grossman asked Letner if the WCAS ever thought about selling the manure rather than paying to have it removed. "We never had to pay to get rid of it (manure) because people sell it," he said.

Grossman also asked Letner if she was aware of Ohio Revised Code (Section 13 111.48 and 131 11.49) that gives renters lien rights. "I'm not suggesting that you would want to take people's horses, but you can give 10 days notice if they're not paying their rent. And then, you can actually sell their horse at public auction. Probably if you did that a couple of times, people would pay... but I'm not saying that you have to do this, but you have a major weapon under Ohio Law to address your delinquencies," he explained.

Grossman also questioned why did the society even raise the rent (from $125 a stable per month to $150) in October if the were only going to use the September financial's when making the decision to vote to evict. "You didn't even wait to see what happened in October before you evicted everybody... and you could evict people that are not paying, but you evicted people that were paying too and that always paid.. why would you do that?" Grossman asked.

Letner explained that while she did not vote, the Ag Society had to make a financial decision. "Honestly, I think, this is why and how the board recently came to that conclusion ...that it's no longer in our best interest to continue financially. Again, this is a business decision that the board has made, and it said, solely, we can't continue to operate at the price that our existing renters want to pay. So the alternative is if they don't want to pay more, then, we have to go out of this business."

Currently the WCAS owes the city of Lebanon $37,000 for utlilites and the manure removal $38,000 along with "a bunch of small outstanding invoices,"Letner shared.

"I think my direction to you is to go to your board and report back to them the number of concerns of this board," Young said, adding, "the bigger picture is to give everyone some breathing room, let them know that we are willing to come in and do something. We'll work with Martin (County Administrator) and come up with some sort of supplement to get you guys caught up. It's not okay that you're behind in bills."

The commissioners also suggested creating a committee that involved someone from the WCAS, a commissioner, Miami Valley Gaming and the OHHA to help create a plan.

If the WCAS does not agree to rescind its notice of eviction to the horsemen at Monday's meeting, Commissioner Grossman asked Letner to come to the commission board meeting the following day (Tuesday) to explain why, which she agreed she would.