New agency will monitor redevelopment of Maryland tracks
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The Maryland legislature on Monday night passed a bill creating a state agency that will consider plans and proposals for the redevelopment of Laurel Park and Pimlico Race Course and other racing facilities, at a time of significant uncertainty over the long-term future of racing in the state.
The bill, which was fast-tracked through the legislative process and is expected to be signed by Gov. Wes Moore, will create the Maryland Thoroughbred Racetrack Operating Authority, with a mandate to “study and make recommendations” for new and existing racing and training facilities. The bill requires the authority to issue a report to various legislative committees by Dec. 1 of this year.
The report will explore “the feasibility of establishing at least two alternative Thoroughbred training centers in the state, a review of best practices for Thoroughbred racing industry operating models and recommendations for operating models in the state, and the progress of Pimlico and Laurel Park facility redevelopment plans.” Pimlico and Laurel are owned by 1/ST Racing, previously known as The Stronach Group.
Late in 2019, the legislature authorized a plan to use casino subsidies to back $375 million in bonds to pay for the redevelopment of Laurel and Pimlico, the host of the second leg of the Triple Crown, the Preakness Stakes. But that plan has stalled over the past four years due to the pandemic, potential cost overruns, and dissatisfaction by 1/ST Racing officials over tax liabilities and the current state of racing.
The bill passed on Monday was pushed by the state’s horsemen and breeders, who are currently negotiating with 1/ST over a new operating agreement. The current operating agreement, in which horsemen and breeders sent a portion of their casino subsidies to 1/ST to fund the company’s racing operations, expired at the end of last year, but the sides agreed to a six-month extension as they attempt to work out a new deal.
Under the 2019 plan, Pimlico and Laurel would have been deeded to the government, and both tracks would have been torn down and rebuilt. Large portions of Pimlico’s property would have been offered to developers for retail, commercial, and housing development, a plan that was backed by local officials in Baltimore. Those plans have now been shelved, according to state racing officials.
In response to concerns that 1/ST may close the tracks, the legislation allows the Maryland Thoroughbred Racetrack Operating Authority to “manage and oversee day-to-day racing operations and live racing days” if the operators of the current tracks step away from the properties. It will also be able to “acquire property for operations” and enter into agreements with industry vendors for racing services.
Alan Foreman, the general counsel for the Maryland Thoroughbred Horsemen’s Association, said that the passage of the bill created a “path forward” for racing at a time when many of the factors affecting the long-term health of the industry remained in flux.
“It’s a monumental step forward for the future of racing,” Foreman said.
Officials for 1/ST did not respond to phone calls.
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