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

The owner of Colonial Downs and Rosie’s Gaming Emporium has drawn criticism from a Henrico supervisor who said the company circumvented an update to zoning rules by submitting plans for a gambling facility in the county before the new rules could take effect.

Churchill Downs Inc., which owns the New Kent County racetrack and the seven Rosie’s off-track horse-betting parlors across Virginia, filed plans last month to convert part of the Staples Mill Shopping Center into a casino-like parlor with 175 “historical horse racing” game machines, along with a restaurant and bar.

The facility is set to fill a nearly 25,000-square-foot space between an Virginia ABC store and Subway restaurant at the western end of the shopping center’s main building at Staples Mill Road and Glenside Drive. The currently vacant space previously housed a Surplus Furniture & Mattress store.

The property’s B-2 business district zoning allows historical horse racing machines and so-called “parimutuel wagering” as a by-right use with a maximum of 175 machines. More than that would require a provisional-use permit from the county, a process that also would require a public hearing.

The space planned for the gambling facility previously housed a Surplus Furniture & Mattress store. (Jonathan Spiers photo)

Henrico was in the process of updating its rules to require a PUP for any such facility, regardless of the number of machines, when Churchill Downs started submitting applications for its project. An ordinance amendment was initiated May 9 and required two hearings and public notice periods before county supervisors could vote to approve it, which they did at their June 25 meeting.

But the rule change came a week after Churchill Downs – through its Colonial Downs Group LLC – had submitted an application for a building permit for the project, on June 18. Because it was submitted before the change took effect, the application is considered “grandfathered” and exempt from the PUP requirement.

The turn of events has drawn the ire of Brookland District Supervisor Dan Schmitt, who represents the area where the project is planned and publicly denounced its timing before the June 25 vote.

“When this jurisdiction states the fact that we’re going to look into this and enact an ordinance that would allow the public to be able to weigh in, that is a publicly known entity and it’s out there that that’s what we’re working on, for weeks or months,” Schmitt said.

Confirming with staff that a plan had been filed “to beat tonight’s deadline,” Schmitt described the effort: “In an order to circumvent the ordinance that we’re working on tonight, I would surmise.”

Henrico Supervisor Dan Schmitt during the June 25 meeting. (Screenshot)

Schmitt went on to say that the same group, before Churchill Downs acquired Colonial Downs and Rosie’s in 2022, had approached him and the county several years ago with a proposal for a similar facility in a different location near the Top Golf in Henrico’s Westwood area. He said concerns were shared about the concept and location and that the group said it wouldn’t go anywhere it’s not wanted.

“Fast-forward to today, and we now have a filing while we’ve been under public responsiveness on this issue, to try to jam this business into the location prior to an ordinance being enacted,” he said.

Maintaining that such a project should be subject to public input and engagement, Schmitt called on Churchill Downs – without referring to it by name – to withdraw its application and refile it under the PUP process.

“Why? Because the same people that this group intends to ‘serve’ deserve it,” he said. “These folks of this county weigh in during PUP process on far less-intrusive items, including hours a store can operate, and the residents that at least I represent deserve the right to weigh in if there’s going to be a gambling establishment in their neighborhood.”

Schmitt added: “The applicant has an opportunity here to show their awareness of what it takes to be a trusted community partner and participate in the public process for those they wish to serve.”

As of Friday, Churchill Downs’ application remained filed with the county and listed as “in review.”

Tonya Abeln, vice president of communications for Churchill Downs, said Friday that the application is in a preliminary stage and that the group had no further comment to offer at this time. Abeln did not respond to a question asking if the group intends to withdraw and refile.

The group is represented locally by Hunton Andrews Kurth attorney Travis Hill. Hill did not return a call Friday seeking comment.

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

Schmitt later said he isn’t opposed to gambling but rather to the concept and proposed locations for the facility, which he said would be similar to a Rosie’s but would bear a different brand.

While Henrico voters narrowly approved on- and off-site betting in the county in a petitioned-for referendum in 1992, Schmitt said voters had no say on historical horse racing machines, which he likens to slot machines, when the General Assembly allowed them in 2018.

“It’s most definitely not the ‘use’ or purpose I’m opposed to – quite frankly gambling in general has been an ever-evolving topic in our region and I’m not opposed to it in concept,” Schmitt said in an email to BizSense. “I am opposed to the by-right implementation of it, thus my support of the ordinance the other night.”

Schmitt added: “It has been made clear to the applicant that not just me, but each of the five members of the Board don’t support the action of filing while the public process was in motion. That type of action is, in my opinion, not the way to launch a relationship with the County.”

The plans filed with the county describe a tenant upfit involving a single-level space with a partial mezzanine. The Subway would remain, and the adjacent House of Vapes would be relocated to the front of the building.

Churchill Downs would lease the space from the shopping center’s owner, an LLC tied to Richmond resident Marianne Metzger. Thalhimer’s Jim Ashby handles leasing at the center.

Churchill Downs is working with SOSH Architects out of Atlantic City, New Jersey. The mechanical, electrical and plumbing engineer is New Jersey-based Concord Engineering, and the structural engineer is Philadelphia-based O’Donnell & Naccarato. Richmond-based Timmons Group is the civil engineer.

The plans list C.K. Bosworth Construction as the general contractor. Crabtree McGrath Associates out of Massachusetts is listed as the food service operator and New Jersey-based M. Malia & Associates as handling security/surveillance.