Judge dismisses lawsuit challenging state loan to NYRA for Belmont Park redevelopment

A New York Supreme Court judge dismissed a lawsuit brought by two New York residents seeking to declare unconstitutional the $455 million loan the state approved in the spring for the New York Racing Association to renovate Belmont Park, meaning the project will be able to move forward.

Judge Peter Lynch issued his ruling just one day after oral arguments were presented in court from both sides.

Lynch disagreed with plaintiffs Jannette Patterson and John Di Leonardo who alleged that the loan is an unconstitutional disbursement of state funds that violates Article VII, Section 8 of the New York State Constitution, which deals with loans to private entities.

In his ruling, Lynch wrote that “it is well settled that the constitutional prohibition against State loans to private entities or for private undertaking is not applicable where the loan is for predominantly a public purpose, and private benefit, if any, is incidental.”

Lynch further wrote that he agrees with the state legislature’s characterization of the renovation of Belmont Park as being in the best interests of the state.

“It is the determination of this Court that inclusion of $455 million in the State Budget, for the renovation of Belmont Park Racetrack, serves a predominantly public purpose, with only incidental benefit to NYRA, and, as such, it does not violate NY Constitution, Article VII,” Lynch wrote.

As part of the renovation, NYRA is looking to replace its current largesse grandstand with a small, more modern facility at approximately one-fourth the size. It also is renovating its current racing surfaces and has begun the process of installing a fourth surface, that being a synthetic track.

During this time, all downstate racing will take place at Aqueduct.

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