Bill providing $375 million to renovate Maryland tracks becomes law

A bill that will provide for $375 million in funds to renovate Pimlico Race Course and Laurel Park in Maryland became law Thursday when Gov. Larry Hogan declined to either sign or veto the legislation, which the Maryland racing industry has heavily supported as a way to bring long-term stability to the sport.

The bill, which was hashed out last year and easily passed both houses of the Maryland legislature this year, will require the current owner of the tracks, The Stronach Group, to deed the properties to city and state agencies in return for the state using casino subsidies to underwrite bonds for the renovations. Supporters of the bill contend that it will keep the Preakness Stakes in Baltimore and allow for year-round stabling and training at Laurel Park in suburban Maryland.

“The act, which addressed vexing issues that had long challenged the industry, now allows for the bright future and optimism of the Preakness at Pimlico for generations to come; year-round racing at Laurel Park, making it the epicenter of training and racing in the Mid-Atlantic; and the unprecedented reinvestment in the communities of interest served by the track,” said Alan M. Rifkin, counsel for the tracks, who negotiated the terms of the bill with legislative and community interests. “This is truly a defining moment in the history of the Maryland Thoroughbred racing industry and the state, and we are most appreciative.”

Hogan had indicated in the past 24 hours that he intended to veto the bill, but he reversed himself on Thursday after receiving pressure from Baltimore officials and others in state government, according to officials.

:: To stay up to date, follow us on: Facebook | Instagram | Twitter

Under the legislation, the state will use casino subsidies flowing to the racing industry to underwrite 30-year bonds with a value of $375 million. The money will be used to tear down both tracks and turn the Pimlico property into a multi-use business and retail tract that will nonetheless host the Preakness Stakes, the second leg of the Triple Crown. Laurel will be renovated so that the track can stable a year-round population of horses and conduct nearly year-round racing.

The bill requires The Stronach Group to lease the tracks for its racing operations. Major construction on the tracks is not expected to begin for at least six months due to the complexities of deeding the properties to state and local agencies and the significant amount of planning that will need to be done to work out a schedule that will lead to minimal disruption of live racing in the state, a priority of horsemen.

As in most other states, racing in Maryland has been shut down since mid-March due to the COVID-19 outbreak. Hogan said at a press conference on Wednesday that the state may consider a gradual re-opening of some businesses next week, and racing officials are hopeful that Laurel Park will receive approval to begin conducting spectator-free racing by the end of the month.