An Albany County Court Judge has dismissed a lawsuit from two New York taxpayers backed by PETA that attempted to block the State of New York from loaning NYRA $455 million that is earmarked for the construction of a new Belmont Park.
The new Belmont Park is expected to open for the 2026 spring meet.
The plaintiffs, Jannette Patterson and John Dileonardo, had argued that the New York State Constitution prohibited the state from giving or loaning state funds to any private corporation. The lawsuit, filed in June, was announced by PETA. Its press release issued at the time said the organization was “hoping to prevent a shady deal to fund a private entertainment business with money from New York taxpayers.”
“No responsible private lender would make such a staggering loan to NYRA,” read the original complaint.
But Judge Peter Lynch ruled that the state can issue loans where the loan is predominantly for a public purpose, which, he wrote, was the case with the rebuilding of Belmont Park.
“It is well settled that the constitutional prohibition against State loans to private entities or for private undertakings is not applicable where the loan is for a predominantly a public purpose, and private benefit, if any, is incidental,” Lynch wrote in his decision. “This interpretation of the constitution does not constitute an unauthorized and unlimited grant of an 'exception' to the prohibition, distinct from the enumerated exceptions set forth in NY Constitution, article VII, ยง 8 (1) and (2). To the contrary, where the appropriation is in furtherance of a predominantly public purpose it simply may not be construed as a private loan or undertaking in the first instance. Funding the renovation of Belmont Park Racetrack constitutes just such a public purpose!”
Lynch referenced a case where a court ruled that the state could contribute $600 million to the $1.4 billion it cost to rebuild the Buffalo Bills Stadium.
“Horse racing fans who attend Belmont Park are no different than football fans who attend the Buffalo Bills stadium,” he wrote. “They are part of the community, and their ability to enjoy the sport of their choice improves their quality of life. Considering Plaintiff's claim that the horse racing industry is in economic straits, it is manifest that the Legislature's funding plan to modernize.”
“The construction of a new Belmont Park will create thousands of jobs, generate billions in economic activity and secure the future of Thoroughbred racing in New York State,” NYRA spokesman Patrick McKenna said after the decision was announced. “This decision recognizes the importance of this transformational project, which will deliver the world-class Belmont Park that New Yorkers deserve.”
NYRA was one of five defendants in the suit. The others were the State of New York; The New York State Assembly; Governor Kathy Hochul and State Comptroller Thomas P. Dinapoli.
The plaintiffs had asked for a preliminary injunction that would have halted the loan. Lynch denied that motion and dismissed the plaintiffs' complaint.
In their complaint, Patterson, Dileonardo and PETA tried to portray racing as a dying sport that did not deserve what amounted to a huge financial shot in the arm from the state. It said that attendance had dropped by 88% since 1978 and that taxes paid to the state from racing had fallen by 90% between 1970 and 2019. The suit called racing a “moribund industry that has seen 41 long-established racetracks shut down in the United States since 2000.”
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