Perhaps the GHP people should talk to the Virginia people on how they managed to turn things around at VHC. Below is a newspaper article describing the sad state of affairs at VHC.
The horse center was in such dire condition before the management overhaul that had it been a prized and beloved show horse, theyâd have been talking gravely about putting it down.
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One publicity wag had dubbed the horse center the âcrown jewel of the $1.2 billion Virginia equestrian industry.â To save it required an all-star turnaround team.
The task involved patching up relationships that never should have been broken, soothing big-dollar patrons who dearly wanted to believe in eternal hoofbeats on Virginia 39 and not some million-dollar pig in a poke, separating swiftly from COVID-19 and finding imaginative new markets.
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Governed by two boards, one appointed by the governor and the other essentially a fundraising arm, operations were as smooth as a ride aboard an American saddlebred at first.
Then stuff started to break.
The horse center, a state agency, was operating under an original understanding that the commonwealth would manage the debt service on the $4.5 million construction bond while private fundraising would handle operations. That worked until it didnât.
Through the late â80s and into the next decade, routine maintenance expenses mounted that private fundraising could not cover.
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It was a slow bleed, the kind you might not notice until you end up in the emergency room.
âThere was no problem for operations to work there as long as the debt service was covered and the facility was still relatively new,â Oare said. âWhen the expensive things started to fall apart â you know, when you start talking about roofs and plumbing and those kinds of things â now youâre not talking thousands of dollars but hundreds of thousands.â
In many a catastrophe, the death spiral wasnât spotted or was ignored early when something could have been done.
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By the turn of the 21st century, lawmakers in Richmond smelled a loser. Not one dime was voted for the horse center during the 2000 session. Up until then, all debt service â $1 million a year â had been covered by the state according to the original management agreement.
Unable to meet the debt, horse center management, headed by first executive director Bob Reel, refinanced the loan and assumed additional debt for land purchases and new construction.
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Cowering in the shadow of $11.4 million in debt, horse center officials in early 2014 again petitioned for public help.
One way the center dodged an executionerâs ax over the years was by leveraging local occupancy tax revenue to pay the mortgage. That business-saving bounty was reaped from city and county hotel patrons.
Local legislators led by the late Republican Ronnie Campbell had successfully wrangled an increase in the tax from 4% to 6%, predicted to fuel debt service by an added $350,000 to $400,000 annually.
And it still wasnât enough.
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âThese people, one after another, came up to me and were utterly hostile. It was painful. It wasnât a pretty picture. From the standpoint of the horse center it was embarrassing.
âI realized then this was really serious.â
Nicholson had one word for the tattered relationship,
âPoisoned.â
So too for dealings with a fast-evaporating pool of donors skittish about throwing dollars at a concern that might have padlocks and chains on the doors and a legal notice nailed thereon at the start of business the following week.
Current and prospective horse show managers were less and less interested in discussing future bookings.
Then there was that delinquent USDA loan.
Provincial infighting about disciplines etc will just be divisive. Somehow the VHC folks figured it out. Perhaps a few phone calls might give the GHP people some ideas.