Pimlico overhaul priced at $424M

A total teardown and rebuild of Pimlico Race Course in Baltimore to make the track “the ideal venue to host the Preakness Stakes” would cost a minimum of $424 million, according to a study conducted by the Maryland Stadium Authority in consultation with the track’s owner, The Stronach Group.

The study, the second produced by the MSA in the past three years, outlines an ambitious and costly plan to raze Pimlico and build the track back up as a multi-use facility in the heart of one of the more economically depressed neighborhoods in the city. The feasibility of the plan is entirely a matter of speculation, given that The Stronach Group, a private company, has said that it would not fund costly renovations at the track without city and state contributions under a so-called “public-private partnership.”

The Preakness has a strong brand in Baltimore, and the race annually brings a national spotlight to both the city and the track. Officials for The Stronach Group have openly broached the possibility of moving the race to its other Maryland track, Laurel Park, a prospect that has generated concern among Baltimore politicians.

Baltimore Mayor Catherine Pugh told the Baltimore Sun that the report represented a “path forward” for the Preakness, and said the city would be open to exploring a partnership with the track.

“We know this is going to require public-private partnerships, including the state,” Pugh said. “We will explore every single option as it relates to keeping this here.”

The study envisions a partitioning of the land owned by the track to enable redevelopment of portions of the property for residential, retail, and commercial uses. The infield of the track would be renovated so that the track could host other athletic or entertainment events, the study said.

Over the past five years, the Stronach Group has consistently shifted live racing dates and capital expenditures to Laurel, located halfway between Baltimore and Washington, D.C. This year, Pimlico held 12 live racing dates, including the two racedays that generate the vast majority of the track’s revenues, Preakness Day and Black-Eyed Susan Day, held the day before the Preakness.

Under state law, The Stronach Group receives subsidies from casinos in Maryland to use for purses and capital expenditures. The subsidies have allowed the company to fund renovations at Laurel and significantly boost purses at the two tracks.

The Stadium Authority report said that the next step in the process would be for “key stakeholders, including [The Stronach Group], the state, and the city to agree to execute a formal agreement to enter into future negotiations.”

In a statement, The Stronach Group’s chief executive officer, Belinda Stronach, the daughter of the founder of the company, Frank Stronach, called for the state legislature to consider “the important questions surrounding not only the financial requirements for a modern stadium that can host the Preakness Stakes but how to best support the needs of the Thoroughbred industry as a whole.”