Pimlico to be transferred to state ownership; $400M in bonds sought for upgrades

ANNAPOLIS — The state of Maryland will assume ownership of Pimlico Race Course in Baltimore under a “binding commitment” with the Canada-based group that operates the Preakness Stakes, a state official said Thursday.

The ownership change is part of an agreement between the state government and The Stronach Group, the Canada-based entertainment and real estate company that owns the Maryland Jockey Club — operator of the Preakness Stakes.

The Preakness Stakes will temporarily leave Baltimore in 2026 while Pimlico receives upgrades, potentially including a parking garage, a hotel and an event center, under a plan sent to lawmakers Thursday that’s part of a push to revamp horse racing, a struggling industry that has long been part of the state’s identity.

Both the state Senate and House of Delegates would first need to pass a bill — calling for $400 million in bonds — by Monday, the day by which legislation must cross to the opposite chamber.

Greg Cross, a Venable LLP attorney who led negotiations with The Stronach Group on the state’s behalf, on Thursday called for lawmakers to pass the proposal.

“It’s a difficult budget year, but we’re not asking for anything in this budget cycle,” Cross said to reporters. “Every 10 years, the legislature tried to solve the problem, and every 10 years, they kicked the can down the road with Band-Aids. This is the first time we’re actually doing something new.”

Prior efforts to bolster the industry have been underfunded and fallen short, industry advocates say. In 2020, the COVID-19 pandemic and the various economic hurdles it created complicated a $375 million plan that lawmakers had approved for improving the tracks.

State negotiators are now asking lawmakers for $400 million in bonds, up $25 million from the prior proposal. The higher bond ceiling accounts for interest costs and wouldn’t add money to this year’s budget, said the state official, who briefed reporters on the condition of anonymity.

Sen. Guy Guzzone, the Senate’s top budget negotiator, said he had yet to review the agreement and that lawmakers will review “a whole host of issues” in the bill in the coming days.

“Any changes are an issue,” Guzzone said when asked about the proposal to increase the bond ceiling.

The state and The Stronach Group are set to close their deal on June 1, and ownership of Pimlico would transfer to the state on July 1.

“This is a new day for us,” Cross said. “We take charge in the presentation of the state in the Preakness.”

The state would eventually stop operating races at Laurel Park, closing the Anne Arundel County track that opened in 1911 and freeing up the land for redevelopment.

Members of the Maryland Thoroughbred Racetrack Operating Authority, which represented the state in negotiations, determined the state couldn’t afford to revamp both Pimlico and Laurel Park while ensuring the viability of the industry.

The authority, which lawmakers established in early 2023, first met in August and was composed of appointees of the governor and top lawmakers, as well as representatives from horse industry organizations, the Maryland Stadium Authority, the Maryland Economic Development Corporation, and areas surrounding Pimlico, Laurel Park and the Bowie Race Course Training Center.

Under the agreement, The Stronach Group would retain ownership of the intellectual property for the Preakness States and the Black-Eyed Susan Stakes, which occur over the same weekend, but ownership of Pimlico and operation of the two races would eventually go to the state.

The Stronach Group is expected to run the Preakness Stakes through the 2026 race, after which the state will pay a licensing fee to operate the event.

The Stronach Group would also transfer control of all day-to-day thoroughbred racing in the state to a new state-created nonprofit operator.

The new model would resemble the setup of the New York Racing Association, a nonprofit that operates racing on New York’s three state-owned tracks.

State officials hope developments at Pimlico will put the facility on par with its Triple Crown partners, Churchill Downs in Kentucky and Belmont Park in New York.

Gov. Wes Moore’s administration has contended that the upgraded site will leverage investment in the Park Heights community, which surrounds Pimlico and bears the brunt of the influx of Preakness Stakes attendees each May.

The state is contemplating private investment for a hotel adjoining the racetrack that would have a 1,000-seat venue for nonracing events, a 2,000-car parking garage to alleviate congestion and other land parcels available for development.

Pimlico is too small to house all of the state’s thoroughbred horses, so officials have also identified three potential training sites in the state — Bowie Race Track in Prince George’s County, Mitchell Farm in Harford County, and Shamrock Farm in Woodbine, a rural community within both Howard and Carroll counties.

After the state purchases and develops a training site, it would include track facilities, barns and stables for roughly 650 horses, which, combined with Pimlico, would help make up for lost stalls at Laurel Park. There are currently 1,400 stalls between Pimlico and Laurel Park.