The city of Baltimore and the owner of Pimlico race track have reached agreement on a deal to keep the Preakness in town, and the Baltimore Sun has all the details! You just have to, you know, search for them a bit:
The Stronach Group has pledged to donate the land to the city or an entity created by the city for development in and around the track. Pimlico’s antiquated grandstand and clubhouse would be demolished. A new clubhouse would be built and the track rotated 30 degrees to the northeast to create nine parcels of land that could be sold for private development.
That’s a whole lot of passive voice — who, exactly, would be building all this new stuff, and who would be selling land for private development? Let’s keep going and see:
In all, Pimlico would receive $199.5 million as part of the project.
From … somebody! No help there.
Crucial to the plan is convincing lawmakers to extend the life of a subsidy for the tracks called the Racetrack Facilities Renewal Account. The state’s casinos each pay a certain percentage of their slot machine profits into the fund, which is used for upgrades at the tracks.
Backers of this new Pimlico and Laurel proposal want to use that money to help pay off $348 million worth of bonds, to be issued by the stadium authority, that would finance most of the $375.5 million redevelopment.
Now we’re getting somewhere, down in paragraph #11. The state casino tax, it turns out, has been going to that Racetrack Facilities Renewal fund, which provides matching funds for upgrades at Maryland racetracks; so far, Pimlico’s owners have mostly been spending the cash on Laurel Park, another track they own. And the tax runs out in 2032, so the state would have to extend it for another 17 years to use it to pay off 30-year bonds to upgrade Pimlico.
Maryland’s casinos also pay taxes to fund education in the state, though the take is less than what was projected and too often lawmakers just use it as an excuse to grab other education funds and redirect them elsewhere, something that Maryland legislators have tried to remedy by setting up a lockbox for education funds. Would extending the racetrack tax cut into education funding, or would it be an additional tax on top of that? The 2,000-word Sun article that took two people to write doesn’t address this.
(There would also be a 30-year lease by Stronach on the racetrack, with the track owners paying a reported $8 million to $10 million a year toward new luxury suites, and if you’re hoping to learn from the Sun whether that’s part of the $199.5 million in reconstruction money or on top of it, don’t hold your breath.)
In short, this looks like it’s probably very bad economic policy — even the racetrack’s owners say it wouldn’t make sense to pour a ton of money into something that hosts just 12 racing days a year, and horse racing overall is plummeting in popularity — but it’s undoubtedly truly terrible journalism, intended to parrot the line being put across by local politicians rather than explain what it would actually mean for the Sun’s readers. Fortunately, Baltimore has another newspaper option, and … what’s that you say, the Sun bought it and then shut it down? Never mind, then.