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§ 10-646.1. Financing the planning, design, and construction of racing facilities

West's Annotated Code of MarylandEconomic DevelopmentEffective: June 1, 2024

West's Annotated Code of Maryland
Economic Development (Refs & Annos)
Division II. Independent and Regional Development Units and Resources [Titles 9-End] (Refs & Annos)
Title 10. Statewide Development Resources and Revenue Authorities (Refs & Annos)
Subtitle 6. Maryland Stadium Authority (Refs & Annos)
Part V. Restrictions on Bonds and Borrowing (Refs & Annos)
Effective: June 1, 2024
MD Code, Economic Development, § 10-646.1
§ 10-646.1. Financing the planning, design, and construction of racing facilities
Currentness
Application of section
(a) Except as allowed by § 10-639 of this subtitle, to finance the planning, design, and construction of any segment of a racing facility on behalf of the Maryland Thoroughbred Racetrack Operating Authority, the Authority shall comply with this section.
Fiscal committees of the General Assembly
(b) At least 45 days before seeking approval of the Board of Public Works for each bond issue or other borrowing, the Authority shall provide, in accordance with § 2-1257 of the State Government Article, to the fiscal committees of the General Assembly
a comprehensive financing plan for the relevant racing facility that includes:
(1) the aggregate amount of funds needed for the racing facility to be financed with the proposed bonds;
(2) a description of the racing facility to be constructed or renovated;
(3) the anticipated total debt service for the proposed bond issue;
(4) the anticipated total debt service when combined with the debt service for all prior outstanding bond issues for racing facilities;
(5) anticipated project costs, as determined by the Maryland Thoroughbred Racetrack Operating Authority, of at least $250,000,000 for the Pimlico racing facility and $110,000,000 for the training facility site; and
(6) a joint plan between the Maryland Thoroughbred Racetrack Operating Authority and the Department of Housing and Community Development that includes the following investments in and around the Pimlico racing facility site:
(i) racetrack workforce housing;
(ii) community commercial revitalization;
(iii) community safety;
(iv) community workforce development and job training;
(v) affordable housing;
(vi) homeownership and home preservation;
(vii) redevelopment of vacant and blighted housing; and
(viii) community beautification.
Bonds
(c)(1) A bond issued to finance planning, design, and construction or renovations of or improvements to a racing facility:
(i) is a limited obligation of the Authority payable solely from money pledged by the Authority to the payment of the principal of and the premium and interest on the bond or money made available to the Authority for that purpose;
(ii) is not a debt, liability, or a pledge of the faith and credit or the taxing power of the State, the Authority, or any other governmental unit; and
(iii) may not give rise to any pecuniary liability of the State, the Authority, or any other governmental unit.
(2) The issuance of a bond to finance the planning, design, and construction or renovations of or improvements to a racing facility is not directly, indirectly, or contingently a moral or other obligation of the State, the Authority, or any other governmental unit to levy or pledge any tax or make any appropriation to pay the bond.
(3) Each bond shall state on its face the provisions of paragraphs (1) and (2) of this subsection.
Requirements
(d)(1) In this subsection, “long-term agreement” includes a lease, operating, joint venture, or management agreement with a minimum term that coincides with or exceeds the initial term of the bonds issued for a racing facility.
(2) Before issuing any bonds for any segment of a racing facility, the Authority shall ensure that the following agreements have been executed:
(i) subject to paragraph (3) of this subsection, a long-term agreement regarding management and operations at the Pimlico racing facility site; and
(ii) agreements between the Authority and project entities for the planning, design, and construction of a racing facility.
(3)(i) Subject to subparagraph (ii) of this paragraph, the long-term agreement required under paragraph (2)(i) of this subsection shall:
1. ensure the continuity of the Preakness Stakes at the Pimlico racing facility site;
2. be contingent on the conveyance or conveyances in fee simple of the Pimlico site, in whole or in part, to the Maryland Thoroughbred Racetrack Operating Authority, Baltimore City, the Baltimore Development Corporation or its successor or assigns, or any designated project entity; and
3. establish:
A. the right of the Authority or an entity designated by the Authority to manage and operate the Pimlico Clubhouse and Events Facility, grounds, and any facility;
B. the obligation of the Authority or an entity designated by the Authority to operate, maintain as a first-class facility, in good condition, repair, and secure the Pimlico racing facility site during periods identified in the long-term agreement; and
C. the obligation of the Authority or an entity designated by the Authority to cooperate with respect to the provision of adequate parking and efficient transportation plans around the Pimlico racing facility site.
(ii) 1. Unless thoroughbred racing is no longer a lawful activity, or is otherwise rendered not commercially viable as a result of a change in law or regulation, the long-term agreement under paragraph (2)(i) of this subsection may not expire while any bond, debt, or other financial instrument issued by the Authority for the improvement of a racing facility remains unpaid.
2. If thoroughbred racing is no longer a lawful activity, or is otherwise rendered not commercially viable as a result of a change in law or regulation, the parties to the long-term agreement shall notify the Board of Public Works at least 180 days before the expiration or termination of the long-term agreement.
3. The notice required under subsubparagraph 2 of this subparagraph shall contain a wind-down plan.
4. The long-term agreement required under paragraph (2)(i) of this subsection shall contain dispute resolution provisions, including expedited review, in the event that there is a dispute among the parties regarding the existence of the conditions described in subsubparagraph 1 of this subparagraph or the contents of the wind-down plan.
Agreements for planning, design, and construction
(e) On behalf of the Maryland Thoroughbred Racetrack Operating Authority, the Authority shall enter into agreements with project entities or local entities for planning, design, and construction of the racing and community development projects at a racing facility site.
Appropriations
(f) For fiscal year 2022 and each fiscal year thereafter, until the bonds that have been issued to finance racing facilities are no longer outstanding and unpaid, the Comptroller shall deposit into the Racing and Community Development Financing Fund at least $17,000,000 from the State Lottery Fund under § 9-120(b)(1)(iv) of the State Government Article.
Transfer to Racing and Community Development Facilities Fund
(g) If the money deposited in the Racing and Community Development Financing Fund in accordance with subsection (f) of this section is not needed for debt service or debt service reserves, the Authority may transfer those funds to the Racing and Community Development Facilities Fund.
Transfer to Racing and Community Development Financing Fund
(h) If funds are needed for debt service or debt service reserves, the Authority may transfer money in the Racing and Community Development Facilities Fund to the Racing and Community Development Financing Fund.

Credits

Added by Acts 2020, c. 590, § 1, eff. June 1, 2020. Amended by Acts 2021, c. 109, § 1, eff. April 13, 2021; Acts 2024, c. 410, § 3, eff. June 1, 2024.
MD Code, Economic Development, § 10-646.1, MD ECON DEV § 10-646.1
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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