Pimlico rebuild a governor's signature away from reality

Legislation in Maryland  that would help fund a rebuild of Pimlico and Laurel Park, as well as secure the future of the Preakness Stakes in the state, passed the General Assembly on Wednesday and will now go to Gov. Larry Hogan for consideration. 

Known as the Racing and Community Development Act of 2020, the legislation calls for the Maryland Stadium Authority to issue up to $375 million in bonds for the redevelopment of Pimlico and Laurel Park. It is to be funded through monies from the state’s Purse Dedication Fund, Racetrack Facility Renewal Account, Maryland Lottery and revenue from video lottery terminals. The Act would take effect on June 1 of this year.

The measure had strong support from the outset — House of Delegates Speaker Adrienne Jones and Guy Guzzone, who chairs the Senate Budget and Taxation Committee — were the initial sponsors. The House passed the conference committee version of the bill by a vote of 113-14 a short while after the Senate voted 44-1 to approve it.

Pimlico and Laurel Park are owned by The Stronach Group. In a statement Wednesday, Stronach Group Chairman Belinda Stronach lauded the action.

“I would like to thank Maryland’s policy makers for the passage of the legislation that paves the way for an enhanced Preakness in Baltimore, the revitalization of year round racing at Laurel Park and reinvestment in the many communities of interest near and related to the racing industry," Stronach said. "Their tireless efforts, particularly as they work to prioritize the health and well-being of Maryland’s citizens during these difficult times, is highly commendable.”

The Racing Community and Development Act of 2020 was largely designed beginning last summer after an effort that would have moved all racing — including the Preakness Stakes — to a rebuilt Laurel and eventually closed Pimlico was largely rejected by Baltimore officials and lawmakers at large. The plan was released early last fall after roughly three months of consultation and study.

“The passage of the Racing and Community Development Act of 2020 is a defining moment for the thoroughbred horse racing industry in this State,” said Alan M. Rifkin, counsel to the Maryland Jockey Club and the Preakness Stakes and the Firm’s managing partner.

Though it has been stated repeatedly that the Laurel project, which includes plans for a new barn area, would go first, the rest of the timeline remains undecided. Much of it will depend on the work of the MSA after the effective date of the legislation.

In another matter, the General Assembly March 18 also passed sports betting legislation, though more than 20 pages outlining implementation, eligible licensees, fees and tax rates were stripped from the final version. The Senate ended up passing an amended House version of Senate Bill 4 that authorizes a constitutional amendment ballot question in the November 2020 general election.

Given disagreement over some of the details, the Senate opted to at least get the question on the ballot as soon as possible. The next opportunity would have been 2022.

"We'll have to deal with implementation at another date," Guzzone said. "The House will not agree with the implementation (in the Senate bill). If we're back before (January 2021), we could figure it out then.

Legislative leaders said they plan to hold a special session in late May to wrap up loose ends and handle veto votes, but it remains to be seen whether sports betting details would be part of the short session.

The Senate initially passed the bill by a vote of 45-0 and by the same vote March 18. The House passed the legislation March 17 by a vote of 129-3. The measure goes to Hogan for consideration.

The earlier version listed most racetracks, all casinos and four non-casino off-track betting facilities as eligible for sports betting licenses, and it also authorized mobile betting and nine "skins" that would be open to interested parties. The state tax rate on net proceeds was 20%.