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Plan for state ownership of Pimlico remains stalled with days left in session
ANNAPOLIS — State senators’ concerns about investments in Baltimore, diverting money from Prince George’s County and the future of Maryland’s racetracks have stalled plans for the state government to own and operate Pimlico Race Course.
With the 90-day lawmaking session ending Monday at midnight, the private owner’s plans to offload the track may depend on a last-minute push in the state legislature.
The House of Delegates voted along party lines Monday to pass the plan, though the bill hasn’t budged in the Senate.
“The Senate needs to act on the Pimlico legislation swiftly,” House Ways and Means Committee Chair Vanessa Atterbeary, who sponsored the bill, said in an interview. “Pimlico is incredibly important to the City of Baltimore, the proposed legislation is incredibly important to the revitalization of the Park Heights community. … It would be detrimental to the city, quite frankly, if it doesn’t pass.”
Under an agreement between the state and The Stronach Group, the Canadian company that owns Pimlico Race Course and operates the Preakness Stakes, the state government would assume ownership of the track and, beginning in 2027, run the annual race through a new 501(c)(4) not-for-profit authority.
The state would pay $1 to acquire the track and then $3 million per year, plus 2% of money wagered, for the rights to operate the Preakness Stakes.
The agreement, though, is first contingent on approval from the state legislature.
RELATED: Lawmakers question cost, community benefits of Maryland’s Pimlico plans
Senate President Bill Ferguson, a Baltimore City Democrat, said Tuesday that there remained “areas of angst” among members of his chamber.
“We’ve got to have some real negotiations and conversations about whether or not the bill, as it has come across, is in the best interest of the industry and the community surrounding the tracks and the communities that would be losing the tracks,” Ferguson said to reporters.
Ferguson said there’s been consternation about the state being on the hook for a licensing fee for next decade, too.
The proposal also includes ending racing at the Laurel Park racecourse and potentially converting an unused track in Bowie into a training facility.
“What is the benefit to those communities in … what would be perceived or felt as a loss of activity?” Ferguson said.
Greg Cross, a Venable LLP attorney who led negotiations with The Stronach Group on the state’s behalf, couldn’t be reached for comment by email, nor could a spokesperson for The Stronach Group.
As of Thursday, it appeared senators’ concerns hadn’t been alleviated.
Since the administration of Gov. Wes Moore introduced plans for the state to take over the track and eventually run the annual Preakness Stakes, lawmakers have questioned the extent to which the neighborhood surrounding the Baltimore track will benefit.
State negotiators have said the plan includes investments in workforce housing and other community benefits in the Park Heights area. Lawmakers who represent the area are looking for more assurances, including bill language codifying the intent, and potentially a share larger than the $10 million that’s been proposed.
“We’re still talking about different options to secure investment in the community,” state Sen. Antonio Hayes said in an interview.
Some lawmakers are concerned about the state diverting money meant for building and maintaining horse tracks away from Prince George’s County, home to Rosecroft Raceway, also owned by The Stronach Group, to repay bond debt service.
While some lawmakers have pointed out that the funding has sat unused, others feel the county shouldn’t be stripped of the subsidy.
Atterbeary said her chamber included budget money for Prince George’s County to “make them whole” for potentially losing the funding.
“I think the senators want something more, above that,” she said.
If the Stronach Group were to sell Rosecroft Raceway, the Ocean Downs racetrack in Worcester County would likely run more races as the state’s only remaining standardbred racing operation.
House Republicans have said more money should go to Ocean Downs to account for this potential, but their Democratic colleagues haven’t been on board.
Atterbeary said that last year the legislature approved $1.4 million that Ocean Downs would receive in perpetuity if they were to take on additional races.
If the bill doesn’t pass by Monday, the future of Pimlico and the Preakness Stakes will fall back to The Stronach Group.
“We’ve got to do what’s in the best interest for Maryland and not be stuck in a corner,” Ferguson said.
