Belmont renovation loan of $455M passed by New York legislature
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The New York Racing Association will receive a loan of $455 million to rebuild Belmont Park under bills that were passed by the state legislature late on Monday afternoon following negotiations between legislative leaders and Gov. Kathy Hochul.
The bills, part of a package of legislation authorizing elements of the state budget, are certain to be signed by Hochul over the next week. Legislative leaders and Hochul had given their support to the Belmont project prior to the bills being negotiated and passed.
The passage of the bills will allow NYRA to tear down Belmont Park and replace it with a smaller, year-round facility approximately one-fifth the size of the current grandstand. Under the bills, once the construction is “substantially complete,” NYRA will give up its lease to Aqueduct racetrack, and downstate racing will be consolidated at Belmont. The state owns the deeds to both tracks.
A lobbying coalition put together by racing constituencies in the state that included local business organizations and unions praised the approval on Monday night.
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“A 21st Century, state-of-the-art Belmont Park will revitalize an iconic destination and give Long Islanders the world-class facility they deserve,” said Matt Cohen, the president of the Long Island Association. “With this substantial investment, we look forward to partnering with NYRA to consolidate all of the downstate racing at Belmont and realize its untapped potential to spur economic growth not only on Long Island but the entire region.”
NYRA and various New York racing constituencies have been lobbying for the plan for two years, but an effort last year was sidelined without being put to a vote in either legislative house. NYRA has said that the plan would strengthen the year-round racing circuit while allowing the sport to better compete with other entertainment options.
“The transformation of Belmont Park will secure the future of Thoroughbred racing in New York State, create thousands of good jobs, and drive tourism to Long Island and the region for decades to come,” said David O’Rourke, NYRA’s chief executive, in a statement released on Monday.
The Breeders’ Cup has said that Belmont Park will be added to its rotation of host sites if the renovations are complete. NYRA last hosted a Breeders’ Cup event in 2005, at Belmont Park. NYRA has said that its lack of “winterized hospitality areas” at Belmont precluded the event from being hosted at the track.
Under the legislation, NYRA will pay back the loan to the state over a 20-year period, using revenues the association receives from casino gambling in the state. Much of those casino revenues are currently earmarked for capital projects for NYRA. The bill sets the annual payment for the debt service at “up to $25.8 million.”
The legislation requires NYRA to adhere to certain guarantees for union jobs and the improvement of backstretch housing at Belmont. The Belmont reconstruction will be overseen by the Franchise Oversight Board, which was created in 2008 to monitor NYRA’s operations after the association emerged from bankruptcy and received a 25-year extension to its franchise to operate Belmont, Aqueduct, and Saratoga.
NYRA has already started construction on some elements of the plan, including a tunnel connecting an area on the Belmont property to the infield and the installation of an artificial racing surface inside the Belmont turf courses. Due to the construction that is being authorized by the legislation, racing is expected to be held at Aqueduct for large portions of the year until the renovation is complete.
Once the project is complete, the redevelopment of the 110-acre Aqueduct property will be overseen by a local advisory board, according to the legislation. Aqueduct is located on a subway line connected to Manhattan and near JFK airport. The track is adjacent to the Resorts World Casino.
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