An ambitious reconstruction plan for Belmont Park received a big boost on February 1 with the announcement of New York Governor Kathy Hochul’s new state budget proposal, which includes provisions allowing the New York Racing Association to obtain state-backed votes to fund building initiatives.
Hochul, a Democrat, said in a budget brief released Wednesday afternoon that the project will lead to the creation of new racetracks, parking lots and a new club at the school. horse racing of Nassau County and paved the way for the only Thoroughbred racetrack in New York. York City area with final closure of Aqueduct race track.
“This project will facilitate the move of the racing Aqueduct to Belmont, allowing the state to reuse Aqueduct assets,” the governor’s brief book states.
Consolidate the lower state Thoroughbred race in Belmont—which will become a year-round racetrack if the project is finalised—and the closure of the Aqueduct has been a boost for some industry executives and state officials for many years. Aqueduct provides key real estate redevelopment opportunities for the state. NYRA operates both Belmont and Aqueduct, as well as Racecourse Saratoga in Saratoga Springs, New York
The budget notes that the NYRA is committed to fully funding the extraordinary loan program; would need a change in state law to allow a private entity like the NYRA to have a state float on its behalf. The NYRA says the state funding vehicle is the only way for the state to pay for a large project. The NYRA said it will use the proceeds of revenue-sharing payments it receives from its Aqueduct-based casino to pay the borrowing costs of the state-backed affiliate effort.
“New York State horse racing is championed by Governor Kathy Hochul, who recognizes the important role the sport plays in the New York economy,” said NYRA President and CEO Dave O’Rourke said.
“Belmont Park is at the heart of the statewide racing ecosystem, and this facility’s renovation will create jobs, boost tourism to the area, and secure the future of Purebred races across the country.” The time has come to build a new Belmont Park for the benefit of the State of New York, and we look forward to working with our legislative partners to ensure the Governor’s proposal is implemented, ” he said in a statement released Wednesday afternoon after Hochul officially backed the plan to borrow Belmont.
Hochul’s budget document says the state expects the Aqueduct to close once the reconstruction of Belmont is complete. A timetable for all of that is uncertain.
By early afternoon, the Hochul government had released the entire budget document with a total of more than 10,000 pages. One claimed that a payment plan would be drawn up in the future between the NYRA and the state for the racing corporation to repay the $455 million borrowed by the state. The budget’s “Financial Plan” shows that the NYRA makes no payments through at least the state’s 2027 fiscal year, though that could change as the terms of any agreements are finalized. perform.
In another budget document, the proposed new state fiscal plan notes that the land at the Aqueduct “will be used in a more profitable manner” after the race on that track is over and the Thoroughbred race is over. of New York City is incorporated under what the NYRA has proposed to the state as the “New Belmont” Plan.
When “substantial completion” of the Belmont reconstruction takes place, “NYRA will waive the rental interest in the property at the Aqueduct… allowing it to be restored to status. The state will have access to more than 100 acres of land. prime property located close to main highway and JFK airport,” a Hochul budget document states.
The Budget notes that the NYRA, which has exclusive rights to operate the Thoroughbred race at three tracks through 2033, receives 4.3% of net winnings from casino video lottery terminals Aqueduct’s Resorts World NYC and 1.3% net winnings from Nassau and Suffolk County OTB video lottery terminal revenue; It is from those two monies that the NYRA plans to repay the state within 30 years—a period beyond the legal term of the current franchise. The budget assumes the NYRA will pay the state $25.8 million annually until the loan, with interest, is repaid.
NYRA plans to eventually close Aqueduct
The budget states that $71 million of the $455 million plan will be used to renovate the turf tracks and create access to the 45-acre Belmont field — giving the NYRA the ability to host tournament events. Non-racing position at the facility. The assembly hall will be razed and replaced with a “modern, properly sized assembly;” which will cost approximately $384 million.
Financial documents released by the state say the Belmont project will be completed within three years.
“The capital plan assumes that a capital loan will be used to finance the project; however, the state reserves the right to issue bonds to finance these costs if the need arises. The capital loan is the most effective means of financing innovation,” Hochul’s financial planner states. It is not clear whether that provision means the Hochul administration believes it can still pursue some financial endeavours for the Belmont project if the Legislature does not agree with this new proposal introduced on Wednesday. .
Also on the air: will the Legislature follow through with a plan promoted by the NYRA and now publicly accepted by Hochul? That question won’t be fully known until a final budget is put together by Hochul and her Democrats, who run Congress and the Senate in Albany.
The legislature last year killed off a similar loan scheme put forward by the NYRA, and there are still lawmakers who don’t believe the state should allow the racing corporation to piggyback off the state’s affiliated agency.
In the first budget book released by Hochul on Wednesday afternoon, there is no indication she is accepting a push by mobile sportsbook operators to reduce the state’s 51 percent tax rate. state for total game revenue. Industry executives told lawmakers on Jan. 31 in Albany that the tax rate was too high, making the initial financial revenues of New York’s one-year-old program unsustainable and would forcing operators to cut investments in the state and impose worse odds on Empire State bettors in competitions than consumers in other states.
The tax cut the industry is seeking will cost the state $600 million in revenue next fiscal year, although mobile sports betting executives insist lower taxes will bring higher tax returns in the long run.
Also not mentioned in the game-related brief of Hochul’s budget is iGaming, the company that betting industry groups are pressing to authorize in New York to allow casino betting. online.
