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Belmont Park State Bond Decision to be Released Feb. 1

Backers say Belmont Park has not seen major renovations since 1968.

Skip Dickstein

New York Gov. Kathy Hochul will reveal Feb. 1 whether she supports a state-backed bonding plan for major infrastructure work at Belmont Park—a decision that either keeps alive or places new barriers to a $450 million capital initiative by the New York Racing Association.

The Democratic governor on Feb. 1 releases her 2023-2024 state budget proposal, into which NYRA and its supporters have been furiously working since last summer to get language included permitting the borrowing idea to go forward.

A spokeswoman for Hochul this week declined to comment on the governor's decision on the NYRA fiscal ask, deferring the answer to when the massive state budget plan is made public Wednesday afternoon.

NYRA and its allies have spent months pushing the borrowing idea both publicly and behind the scenes with Hochul administration officials and lawmakers, including those who last year halted the unique bonding plan. A coalition that includes NYRA, business interests, unions, and others has spent money on publicity efforts, polling, and other means to try--in the end--to first convince Hochul to put the bond plan into her state budget.

NYRA has said its borrowing request--which it says it will fully pay for--is necessary in order to be able to proceed with a reconstruction project of Belmont, including a new grandstand and extensive track work.

New York Governor Kathy Hochul at Saratoga on August 26, 2022
Photo: Coglianese Photos
Kathy Hochul (L) at Saratoga Race Course

The special use of the state bonding programs by a private entity such as NYRA would require a statutory change. Last year, the idea died in the face of opposition by lawmakers who raised questions about the wisdom of using state bonds to pave the way for NYRA to renovate Belmont. NYRA also faces critics who opposed current state law that gives NYRA a share of revenues from the casino at its Aqueduct; they deride such revenue sharing as wasteful taxpayer subsidies.

The overall capital initiative at Belmont would be a major step toward centralizing downstate thoroughbred racing at the Nassau County track and, eventually, closing Aqueduct.

A NYRA-led group pushing the Belmont bond plan called We Are New York Racing, which includes the New York Thoroughbred Horsemen's Association, New York Thoroughbred Breeders, bankers, restaurant owners, harness racing groups, and others, say a reconstructed Belmont is necessary to try to attract future race fans to what would eventually become a year-round racing facility. They also note that the improvements will make the property—owned by the state government—more valuable and would bring the Breeders' Cup back to New York for the first time since 2005.

NYRA officials will be closely monitoring the governor's new fiscal plan.

"The construction of a new Belmont Park would create thousands of jobs, generate billions in economic activity and secure the future of thoroughbred racing in New York State. That's why this transformational project enjoys broad support among New Yorkers, elected officials, organized labor, and the statewide business community,'' Patrick McKenna, a NYRA spokesman, said in a statement Tuesday.

"The time is right for a new Belmont Park,'' he added.

NYRA says it could not, on its own, get access to lower interest bonds on the private marketplace as it could through a state borrowing. Its plan envisions using video lottery terminal revenue proceeds from the Aqueduct track to fully cover the borrowing's principle and interest over a 30-year term. Backers say Belmont has not seen major renovations since 1968.

Go for Wand wins the 1990 Maskette Stakes at Belmont Park
Photo: Bob Coglianese
Go for Wand wins the 1990 Maskette Stakes at Belmont Park

If Hochul puts the NYRA bonding idea into her state budget proposal, it would provide a boost to the Belmont plan. However, a bumpy path still exists—both from a fiscal and political standpoint—in the legislature. Hochul's relationship with her fellow Democrats who overwhelmingly control the state legislature have become more complex and problematic than a year ago for a governor. Hochul won election last November to a full, four-year term by a margin much closer than Democrats might have originally thought, and she has had some testy run-ins with the legislature, particularly in the state senate.

If Hochul includes the borrowing plan, it is uncertain how much of a priority she will make it—considering the fiscally ambitious list of other items she has on the top of her agenda—in talks with the senate and assembly. The budget is due to be adopted by March 31.

The state's top racing regulator recently stated his desires needing to be earmarked as part of any reconstruction of Belmont. "I know that NYRA...has plans for an extensive renovation of Belmont, including the provision of luxury boxes. I think it is incumbent upon this commission... to make sure that along with the luxury boxes is decent workers' housing for the backstretch workers,'' Brian O'Dwyer, chairman of the New York State Gaming Commission, said at the regulatory board's mid-January meeting.

McKenna, the NYRA spokesman, said in a statement Wednesday: "In addition to developing a world-class facility capable of hosting year-round racing and mega events like the Breeders' Cup, NYRA will continue to devote the resources, time, and attention necessary to support the backstretch community at Belmont Park. This means the construction of more new backstretch housing in the coming years than at any point in NYRA history along with unprecedented overall investments in backstretch facilities."