Featured Article (January 2004)

The Virginia Horse Center & the Commonwealth: A Partnership in Danger

For centuries, the history and tradition of the Commonwealth of Virginia has been entwined with that of the horse. For over eighteen years, this special relationship has been celebrated with pride at the Virginia Horse Center in Lexington. Known throughout the country and internationally, the Virginia Horse Center serves as a venue for a variety of horse shows, clinics, workshops, and community events, including therapeutic riding, rodeos, the Rockbridge County Fair, as well as receptions, concerts, and other events.

Virginia Horse Center's Economic Impact on Virginia's Economy

A tremendous asset to the equine industry, as well as a tremendous economic asset to the Commonwealth, the Virginia Horse Center attracts more than 400,000 visitors each year, sixty percent of who are from out of state. According to the "The Virginia Horse Center's Economic Impact," a 2001 economic impact study authored by John L. Knapp and Catherine E. Barchers of the University of Virginia's Weldon Cooper Center for Public Service, the Virginia Horse Center's operations are responsible for over $30 million in annual direct tourist spending. Over 700 jobs are affected statewide by the Horse Center's operations, and its total impact on Virginia's economy is over $41 million annually.

History of the Commonwealth and Horse Center's Partnership

The Virginia Horse Center's story began over thirty years ago, when Governor Mills E. Godwin, Jr., and the Commission of the Industry of Agriculture, commissioned a study about the Commonwealth's horse industry, focusing on ways to stimulate its growth. In 1978, Governor John Dalton appointed a task force to further explore the ideas presented to Governor Godwin. The task force recommended that a large, modern indoor arena be established for equestrian shows, sales and other events.

After careful consideration of the task force's study, the General Assembly of Virginia formed the Joint Legislative Subcommittee for the Virginia Horse Center in 1984. The Subcommittee began accepting written proposals of application for the Center and evaluating potential sites across the Commonwealth. Numerous Virginia locales vied for the Horse Center, including the counties of Albemarle, Augusta, Culpeper, Fluvanna, Greene, Rockbridge-Lexington, Rockingham-Harrisonburg, and the City of Roanoke.

After visiting the Rockbridge site on June 6, 1984, the Joint Legislative Subcommittee voted unanimously on June 8, 1984, to locate the Virginia Horse Center on a 378-acre parcel located between Route 39 and Interstate 64, one mile west of Route 11 and convenient to Interstate 81 in Rockbridge County. The Rockbridge Area Committee for the Virginia Equine Center headed by Chairman G. Otis Mead III, a Lexington realtor, then launched a massive public relations campaign to convince the General Assembly to give its approval and financial backing to the Virginia Horse Center.

The Rockbridge Committee's efforts combined with those of well-known Richmond lobbyists Ernest H. "Judge" Williams, Jr., and W. Luke Witt, as well as Senators Howard Anderson and Frank Nolen and Delegates Vance Wilkins, Lacey Putney, and Andy Guest, were successful. On March 22, 1985, Governor Charles S. Robb signed the Virginia Horse Center into law, creating the Virginia Equine Center Foundation, a public board appointed by the Governor, to oversee operations and a private board, the Virginia Horse Center Foundation, to raise money, cover major maintenance costs, and supplement operations, when needed. A little over a year later on August 13, 1986, Governor Gerald Baliles hosted the Groundbreaking Ceremony for the new Virginia Horse Center. The first horse show was held in August 1987.

Today, the Virginia Horse Center continues to raise the standard of excellence in the equine show world. The 600-acre Horse Center boasts breathtaking views and pristine grounds, a 4,000-seat coliseum, eight barns to accommodate 1,200 horses, fourteen show rings, including two large indoor arenas, internationally-rated cross-country and combined carriage driving courses, two museums, a gift shop, a campground, a restaurant, and more. Events are scheduled every week from mid-January through mid-December and range from United States Pony Clubs and 4-H youth competitions to international three-day and combined driving events featuring numerous Olympic and United States Equestrian Team members.

A Successful Public-Private Partnership in Danger

"The Virginia Horse Center is one of the oldest and most successful public-private partnerships in the Commonwealth of Virginia, one that links the public sector, the private sector, and state and local governments," said the Virginia Horse Center's executive director, John F.R. Scott. "Traditionally, Virginia appropriated funds to reduce the debt incurred to build the Virginia Horse Center, while in turn the Horse Center secured funds to cover its own operating expenses even as it annually generated $3.4 million in state and local tax revenue, a return of three dollars for every one dollar invested by the Commonwealth."

"Until last year, this partnership worked well and given its economic success, many economists are shaking their heads at the state legislators' decision to wean the Virginia Horse Center's debt service appropriation citing the need to fund core responsibilities," continued Scott. "We fear that the Virginia Horse Center may be forced to default on the debt payment if this funding issue is not resolved within the next eighteen months. Because the Virginia Horse Center provides revenue to fund state projects, the result will be fewer state dollars if the Horse Center is forced to close its doors."

Financial Instability Harms Center's Fund Raising Efforts

Over the years, the Virginia Horse Center's partnership with Virginia allowed the Horse Center to take advantage of nearly $10 million in private funds, which were used for facility improvements and to supplement operations. However, these private donations have virtually dried up in the face of the Horse Center's current budget difficulties.

"It is very difficult to raise money for debt service," said Lethia Hammond, the Virginia Horse Center's director of marketing, public affairs and development. "Without financial stability, it is unlikely or impossible for other ventures to consider investing time and resources in a long-term relationship with a facility that may not remain a going concern."

Competing with Neighboring State Equine Facilities

While the Virginia Horse Center is exploring a variety of opportunities to offset the Commonwealth's reduced debt service appropriation, Scott explained that raising user fees to offset the funding shortfall or privatizing the Horse Center are not viable options. "The Virginia Horse Center must compete with similar facilities in neighboring states and around the country that receive debt service and operations funding, which allows them to offer lower user fees," he said. "Any private entity would have the same debt service payment and same challenges currently faced by the Horse Center when competing with its counterparts for event bookings."

Repercussions if the Virginia Horse Center Defaults on Debt Payment

Scott also noted that if the Virginia Horse Center is forced to default on the debt payment or is privatized, the negative repercussions would be great. "It is likely the land would end up being developed, private investments would be lost, and the Virginia Horse Center would lose some or all of its facilities," he said. "In addition, localities that are already strapped for funds would lose tax revenues and many historic farms that have been preserved by horse enthusiasts would be endangered."

In order to educate state legislators, local elected officials, and the public at large about ways the Virginia Horse Center benefits the equine and agricultural industries as well as the state and local economies, a group of concerned supporters recently formed Friends of the Virginia Horse Center.

How You Can Help Save the Virginia Horse Center

"The Virginia Horse Center is a world-class equine facility worth saving," stated Hammond. "Not only does the facility and the tourism industry it created yield millions of dollars in tax revenues and hundreds of jobs for local and state economies, it provides wholesome recreational opportunities for hundreds of thousands of equine enthusiasts."

"Equine enthusiasts from around the country have located in the Commonwealth because of the Virginia Horse Center and numerous state, regional and national horse shows have made the Horse Center their home," continued Hammond. "Olympic and United States Equestrian Team members are regular competitors at the Center and many of the children and young adults who show here would not otherwise have the opportunity to compete in a facility of this caliber."

"The Virginia Horse Center is important to many different people for many different reasons," Hammond concluded. "We need everyone's support and involvement to help guarantee its future."

Please help by joining the Friends of the Virginia Horse Center. For more information about the Friends of the Virginia Horse Center, or to join, please phone Lethia Hammond at 540-464-2950.