Lottery Winner’s Plan Put On Hold By State

The state Commerce Department has filed suit to halt construction of a horse arena near Vaughn until lottery winner Russ Sherrod gets a building permit or proves he doesn’t need one.

The department says the 66,000-square-foot enclosed arena Sherrod is building is probably the first of its type in Montana and could have significant impact on the residential area.

“After fully explaining what I was going to do, I was told by the state and the county that I didn’t need the permits,” Sherrod said Friday. “After the construction began, (neighbors) called county commissioners and asked what was going on.

“I jumped through the county hoops in an effort at good will to the neighbors. At that point the county gave us their blessings and said they didn’t anticipate problems with the state.”

Sherrod is building the enclosure as part of a horse facility known as R Bar S Arena near Vaughn.

He won $31 million in the Powerball lottery two years ago and planned to make the thoroughbred horse-breeding arena a commercial facility that would be open to the public. His plans called for indoor and outdoor arenas that could handle events with up to 500 participants, viewing stands, a large parking lot, public rest rooms, concession stand, business office and employee residences.

In August he received a commercial development permit from Cascade County.

The state’s lawsuit says one condition of the county’s commercial development permit was that Sherrod obtain a permit from the state Commerce Department. Sherrod applied for that permit Aug. 21, but the department asked for additional information and permit and review fees of $3,010. Sherrod balked.

Construction continued. The department issued a cease and desist order, but Sherrod claimed an exemption from the state building code as an “agricultural-use project.” The department contends he has declined to respond to additional requests for information.

The department has asked District Judge Kenneth Neill to issue a preliminary injunction blocking further construction and to order Sherrod to attend a hearing to show why he should be allowed to continue.