A coalition pressing for approval of a state-backed bonding plan for major improvements at the New York Racing Association's Belmont Park announced the expansion of its membership Nov. 17 at the state Capitol in Albany.
The effort comes as New York Gov. Kathy Hochul, recently elected to a full term as governor, is putting together her spending, revenue, and bonding provisions when her 2023 state budget plan is unveiled in January.
We Are New York Racing, a coalition initially formed to counter criticisms over the racing industry regarding equine safety and state subsidies' issues, said Thursday it was adding members to its group at a time when it will be pressing for a bonding authorization for an overhaul at Belmont.
The new members are the Business Council of New York State, which is a major lobbying force for an array of business interests at the Capitol, and the Queens Chamber of Commerce. Besides NYRA and the Business Council, the New York Thoroughbred Horsemen's Association and the New York Thoroughbred Breeders were scheduled to appear at the Capitol Thursday for the 2023 Belmont bond lobbying push.
A bid by NYRA was unsuccessful in the 2022 state legislative session, which ended last June, to tap into a state bonding program for $450 million in capital money to help fund a major overhaul at Belmont—including a new grandstand and sweeping track improvements. It's all part of a broader initiative that eventually calls for an end to racing at Aqueduct Racetrack with NYRA's downstate racing operations centered solely on Belmont.
NYRA tried unsuccessfully to get the borrowing plan included in this year's state budget for the fiscal year that began April 1. Another bid was made during the final months of the 2022 session, but it, too, died when lawmakers ended their session in June. Backers at the time were saying the effort needed more work, including answering questions by some reluctant lawmakers and state officials. They say that lobbying has been ongoing since the end of the session, and they are hopeful Hochul will include their idea in her next budget in 2023.
NYRA could realize lower interest rates and a less cumbersome borrowing process if it can access the state bonding program; NYRA says it will pay any and all costs of the borrowing.
NYRA officials said the $450 million in bonding would be 100% paid back by NYRA over 30 years from capital-dedicated proceeds from video lottery terminal revenue-sharing funds it receives.
"Downstate racing needs a complete facelift,'' Jeffrey Cannizzo, NYRA's director of government affairs, said Thursday at the state Capitol.
He repeatedly spoke of a new facility being able to attract future generations of fans to a year-round facility, as well as to bring the Breeders' Cup to New York.
"It's about time we renovate a facility that, quite honestly, is lagging modern entertainment facilities around the state and the country,'' said Joseph Appelbaum, president of the New York Thoroughbred Horsemen's Association.
Backers say the NYRA-financed project will create jobs and also increase the value of the state-owned property. (NYRA operates racing at its three tracks in New York under a long-term franchise agreement, but the state owns the properties.)
Some work needs to be done, including convincing Hochul, who this month won an underwhelming victory for a full term as governor, as well as finding a new Senate sponsor for the idea; the 2022 sponsor, Sen. Anna Kaplan, a Nassau County Democrat, was defeated in November in her general election campaign race.
If Hochul puts the plan in her budget, a separate Senate and Assembly bill would, practically, be unnecessary. Unknown in the equation for the bonding push is how the politics of Long Island might shape the debate; Hochul, in her recent statewide election victory, lost Nassau and Suffolk counties on Long Island, and her fellow Democrats were defeated in state legislative and congressional contests there. (Belmont is located in Nassau County.)
"Whether upstate or downstate, New York is horse racing country through and through," said Heather Briccetti Mulligan, president & CEO of the Business Council of New York State. "This sport generates billions in economic activity, supports tens of thousands of jobs, and contributes tens of millions of dollars in taxes. Modernizing Belmont Park will only increase the tremendous benefits horse racing brings to everyone from farmers in the North Country to backstretch workers on Long Island to hotel workers in Saratoga. And we are excited to help the coalition continue to make the case this year in Albany."
The horse racing industry in New York, as elsewhere, has come under increasingly coordinated attacks over equine safety issues, as well as what critics say have been overly generous publicly financed benefits to help prop up such things as purses and breeding funds.
The We Are New York Racing group, besides NYRA, Standardbred organizations, and business trade groups, includes unions, banks, horse farms, OTB corporations, restaurants, and government interests in Saratoga Springs and the National Museum of Racing and Hall of Fame. It has sought to spread the word about the economic importance of the horse racing industry in New York.
The coalition noted that Belmont Park has not seen major renovations since 1968. NYRA wants the authorization to essentially piggyback onto state bond sales, giving it access to lower interest rates; NYRA said it will be responsible for all debt service obligations of such borrowing plans.
"Modernizing Belmont Park is a transformational project that would establish one of the finest sports and entertainment destinations anywhere in the country—especially when coupled with the new UBS Arena next door. NYRA appreciates the hard work and support of the We Are New York Horse Racing coalition, whose membership recognizes the importance of a new Belmont Park for the future of Thoroughbred racing in New York and the state economy overall,'' NYRA spokesman Patrick McKenna said in a statement this morning.
"A reimagined Belmont would be the most consequential and significant new development the sport has seen in recent history and a massive construction project for New York State. It would result in a facility capable of hosting year-round racing and pave the way for the return of the Breeders' Cup World Championships to New York, while creating thousands of jobs now and in the future,'' the NYRA official added.
"Belmont might be across the border in Nassau County, but here in Queens we understand that building a new, world-class Belmont Park will have an immense, positive impact on the downstate region and the entire state—and we're proud to support that goal," said Thomas J. Grech, president & CEO of the Queens Chamber of Commerce. "This project would not cost taxpayers a single cent, but it would unlock immense economic activity in Queens and on Long Island. It's a win-win for our communities."
"Our coalition continues to grow because horse racing has a positive impact on every corner of New York State—from Batavia to Belmont. We have built tremendous momentum going into this legislative session, and we are to keep pushing and make modernizing Belmont a major budget priority in 2023," said Jack Sterne, spokesperson for the We Are New York Horse Racing Coalition.
The coalition was created in September 2021 and today includes more than 50 members.
The Belmont renovation bonding plan was backed by groups more than 150 miles north of the Long Island track.
"Saratoga Race Course is the crown jewel of the Spa City, but in order to secure Saratoga's future, we need to reimagine and strengthen Belmont Park," said Todd Shimkus, president of the Saratoga County Chamber of Commerce.
"The connection between horse racing upstate and downstate is undeniable, and the success of the annual summer meet depends on the continued strength of the competition at Belmont Park. The future of Belmont and Saratoga are inextricably linked, and on behalf of my membership in Saratoga County, I am ready to make modernizing Belmont Park a top priority,'' he said.
