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Ruling on track lease soon

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Real Estate Agent with Re/Max - The Real Estate Leaders

EAST RUTHERFORD — An attorney for Monmouth Park’s new management urged an administrative hearing officer Monday to take quick action against a challenge asserting that a state agency acted improperly when it authorized the 35-year lease of the track.

Jerold L. Zaro said the New Jersey Thoroughbred Horsemen’s Association is set to take control of the landmark Oceanport site May 3 and open this season’s thoroughbred race meet a week later.

He said Monmouth County developer John J. Brunetti’s claim that the New Jersey Sports and Exposition Authority didn’t follow bidding laws is baseless but has created uncertainty and “turmoil in the thoroughbred racing industry.”

“The season opens imminently and yet trainers, horsemen, veterinarians, feed haulers, grooms and vendors who might sell food, beverages or merchandise, even those who supply tote services and other betting services, are wondering if this season is going to open,” Zaro said.

“A clear message needs to be sent to the racing industry that this season is going to go forward in accordance with the properly awarded bid to the horsemen,” he said.

Hearing officer Mark E. Stefanacci said he will review testimony from the 90-minute hearing and prepare a ruling on the validity of the lease that the authority board can accept, reject or modify.

“The board is scheduled to meet this Thursday. I’m going to make every effort to make that deadline to have my recommendation ready for the board, but I can’t make any guarantees,” Stefanacci said.

Brunetti’s attorney, Paul P. Josephson, argued strenuously that the THA was unfairly given the inside track to make a deal when the original winning bidder, Deal real estate titan Morris Bailey, abruptly withdrew five months ago. Brunetti owns Hialeah Park in Florida. Josephson said Brunetti wants to establish “a circuit between two fabled tracks, Hialeah and Monmouth Park.”

Josephson also claimed the THA shouldn’t have been allowed to bid on the lease because it and two aligned political committees made more than $50,000 in disqualifying campaign contributions. But Zaro said the THA as a nonprofit entity isn’t covered by the relevant pay-to-play laws.

The argument cut both ways: Josephson conceded that political contributions made by Brunetti and companies are also problematic.

“My client has made a couple of contributions, relatively small in scale,” Josephson said. “However we do recognize that there were contributions made to three county party committees that under the application of pay-to-play laws do present a disqualifying circumstance. The difficulty for the authority, do my colleagues for the (THA) have exactly the same problem?”

Josephson said Brunetti is prepared to make a deal “today” with the sports authority if the THA lease is rescinded.

He also suggested as another option that a new round of bidding be opened, with the sports authority continuing to operate the track in the interim, but Zaro said that would never fly with Gov. Chris Christie.

Christie over a year ago ordered administration officials to lease the two state-owned racetracks.

Zaro said, “This governor, who says what he means and does what he says, has made it abundantly clear to all that he has no interest in the state being in the racing industry in 2012 and to suggest that magically that would disappear and the state would parachute back in is I think unrealistic.”

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