NYRA, N.Y. State Reach Tentative Deal on Belmont Funds

State budget negotiators in New York have reached a tentative deal April 26 to provide the New York Racing Association with $455 million in borrowing to finance a major reconstruction of Belmont Park, a plan that also envisions the future closing of Aqueduct Racetrack to consolidate Thoroughbred racing in the New York City area to a single track.

The looming Belmont deal is a small part of a more than $225 billion state budget plan, which as of Wednesday night was still coming together at the New York State Capitol in Albany.

Lawmakers have been presented with the parameters of a Belmont borrowing deal, assured that they will still have a voice going forward in both the Belmont and Aqueduct components through the state's Franchise Oversight Board, a panel that monitors NYRA's finances and includes representatives of the Legislature.

Plans closely mirroring one another for the Belmont project have already been advanced this year by Governor Kathy Hochul and Democrats who control the state Senate and Assembly. It became clear last month that some sort of NYRA Belmont borrowing plan would be included in a final budget deal, which was supposed to have been adopted by March 31. Unrelated fiscal and policy disputes have kept adoption of a final 2023 budget elusive for the Democrats who control Albany; deals on an array of topics were at hand this week and a final budget could be adopted in the days ahead.

As for the Belmont project, there are still unresolved matters involving the role to be played by a local community advisory board regarding the future development plans for Aqueduct, which is a prime parcel of real estate in Queens. That site is poised to be a major financial windfall for unknown future developers, as well as the state, which owns Aqueduct as well as Belmont racetracks. Residential groups near Aqueduct have raised concerns about commercial density issues about future Aqueduct real estate initiatives, and many state and local lawmakers want assurances that the project will include affordable housing components.

The expected Belmont deal, according to sources, includes a number of provisions pertaining to everything from union job guarantees for future track construction projects to certain energy efficiency standards being met at the renovated track.

NYRA has pushed the Belmont project for more than a year. It wants to completely renovate the facility, including construction of a smaller more modern grandstand, new track surfaces, and the opening of the infield for racing and non-racing entertainment events.

Critics, including animal rights organizations that visited the Capitol this week, have argued, in part, that the state should get out of the business of subsidizing horse racing, which they see as dangerous for horses and inappropriate as a source for taxpayer dollars. NYRA and its supporters say the plan will create and maintain jobs across the state and will help the sport grow for future fans.

The NYRA plan for Belmont calls for the state to loan the racing corporation the funds to renovate the Long Island-based track, with NYRA repaying the $455 million over 20 years via revenue-sharing proceeds it receives from video lottery terminal payments from the casino located at Aqueduct racetrack. When the Belmont project is substantially completed, NYRA has agreed it will relinquish its existing lease with the state for Aqueduct racetrack which will free that property up for still-unknown but guaranteed lucrative real estate ventures given its prime location.

The tentative deal at the Capitol in Albany includes provisions to ensure project labor agreements for unionized construction workers, as well as job guarantees on the project for minority and women-owned businesses as well as veteran-owned firms, according to information presented to lawmakers Wednesday.

As is always the case before an overall state budget deal comes together, components like the Belmont borrowing initiative could still change depending on what issues fall on and off the various negotiating tables. Negotiators in recent days have been discussing everything from changes to criminal statutes to minimum wage to expansion of charter schools.

But some sort of Belmont plan is expected in the final budget since all three sides—Hochul, Senate Democrats and Assembly Democrats —have this year already publicly embraced the concept of state taxpayers lending NYRA $455 million for the project.