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Lexington’s
horse power
by Robert Burke
November 2003
At
the tail end of budget talks in the past General Assembly
session, the Virginia Horse Center near Lexington found
itself fending off criticism from legislators who thought
the center was a frivolous expense at a time when the
state was shutting down DMV offices and trying to squeeze
in a pay raise for public employees.
The
center had hoped for $1.2 million from the state but
wound up getting $891,000 and no guarantee that it wouldn’t
face more cuts. This year, though, the center’s
leaders are out to convince legislators that the state-chartered
center, launched in the mid-1980s, isn’t a subsidy
for the rich. “There’s a strong misperception
that people who own horses are across the board wealthy
people,” says Lethia Hammond, the center’s
director of development.
Attendees
to events at the horse center may not be wealthy but
they do spend money — $30 million a year, Hammond
says, and 60 percent of the visitors are from out of
state. At one event in May the center produced $1 million
in lodging sales at nearby hotels, she says. There are
six hotels within a mile of the horse center and a seventh
is under construction. In 2001 the center accounted
for $1.9 million in tax revenue for the state and $1.5
million for local government, according to a study by
the Weldon Cooper Center for Public Service.
Hammond says the center’s leaders are lobbying
in advance of the coming General Assembly session to
change its image. “What we hope to do is be able
to say to the state, ‘Look what a tremendous investment
you’ve made and what a tremendous return you’re
receiving.’”
The
center already raises its own operating funds; the state
funds have traditionally gone toward its debt service.
This year’s cuts were absorbed by the center but
have led to its bonds being downgraded twice this year.
Hammond says the potential loss of state funding could
hurt private fundraising as well as create uncertainty
among donors.
The
center is run by two foundations: the Virginia Equine
Center Foundation, which has board members appointed
by the governor, and the Virginia Horse Center Foundation,
which does fundraising. Since its start the center has
raised more than $10 million in donations.
The
center, which has 28 employees, hosts events nearly
300 days a year. It recently bought a 200-acre adjacent
site and plans to add more events. The center “is
just starting to reach its full potential,” Hammond
says.
Virginia
Business - November 2003
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