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Judge Throws Out PETA-Backed Lawsuit that Sought to Block Loan to NYRA for Belmont Renovations

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, § 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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Two Taxpayers Sue to Block $455m Loan to Rebuild Belmont

Two New York residents sued the state, its governing bodies, elected officials, and the New York Racing Association (NYRA) on Thursday in an attempt to block the recently announced $455-million loan to renovate Belmont Park.

“This case is about the State of New York's unconstitutional appropriation of taxpayer funds by loaning nearly half a billion dollars to NYRA, all while turning a blind eye to NYRA's past two decades of financial mismanagement, malfeasance and scandal, and, more importantly, ignoring the State's Constitutional prohibition against providing State monies–whether by loan or by grant–to private corporations like NYRA,” stated the June 22 complaint filed in the Supreme Court of the State of New York.

The plaintiffs, who each identify themselves in the filing as a “citizen taxpayer of the State of New York who has paid, and is paying, New York State income and sales taxes,” want a judgment declaring that the state's loan “would be an illegal and unconstitutional expenditure, misappropriation, misapplication, or disbursement of State funds.”

The plaintiffs are also demanding an order “enjoining the State of New York and the Office of the New York State Comptroller from disbursing funds to or in aid of NYRA, and enjoining NYRA from receiving any State funds.”

The complaint continued: “If some or all of the State's funds have already been disbursed to or in aid of NYRA, [plaintiffs want] an order requiring restitution to the State of those funds pursuant to State Finance Law.”

The plaintiffs are Jannette Patterson and John Di Leonardo. The defendants are the State of New York, the New York State Assembly, the New York State Senate, Governor Kathy Hochul, state comptroller Thomas P. DiNapoli, and NYRA.

“The constitutionality of the State's appropriation is a definite, concrete, and substantial legal controversy that requires judicial intervention,” the lawsuit stated.

“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. Governor Hochul and both houses of the legislature recognize the importance of this transformational project to both Long Island and New York State, and that's exactly why the project was included in the FY2024 budget,” said NYRA's Vice President of Communications, Patrick McKenna.

The lawsuit was announced by People for the Ethical Treatment of Animals, though it was unclear what their connection to the lawsuit was.

“Organizations like PETA are philosophically opposed to horse racing and make no secret of their desire to end the sport. New Yorkers reject PETA's extreme agenda by attending, watching and wagering on horse racing in record numbers. As we look forward to the modernization of Belmont Park, and the opening of the summer meet at historic Saratoga Race Course on July 13, this ridiculous lawsuit is a meritless attack on a sport that supports New York families in every corner of the state.”

When the 2024 state budget was approved and publicly announced May 1, it greenlighted a decades-in-the-making plan to construct a revamped Belmont Park that would serve as the year-round downstate home of New York racing. The current 1.25-million square-foot structure, last renovated in 1968, is to be replaced with a roughly 275,000 square-foot facility featuring modern amenities and hospitality offerings.

“The transformation of Belmont Park will secure the future of Thoroughbred racing in New York State, create thousands of good jobs and drive tourism to Long Island and the region for decades to come,” said NYRA's president and chief executive officer, David O'Rourke, at the time the loan was included in the budget.

The post Two Taxpayers Sue to Block $455m Loan to Rebuild Belmont appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

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CA Horseshoeing School Barred From Enrolling Certain Students

Recently, the decision of a lawsuit brought forth by a horse shoeing school, farrier and student was overturned in a California court. The lawsuit alleges that the California Private Postsecondary Education Act of 2009 violates the First Amendment rights of Pacific Coast Horseshoeing School (PCHS) and Bob Smith to teach farriery, and also violates the rights of Esteban Narez to learn.

The 9th Circuit Court of Appeals reversed the decision of the United States Court for the Eastern District of California, stating that the Act controls more than contractual relations and that content discrimination was apparent. The panel does not contest that the state cannot regulate for-profit teaching, but it does ask for demonstration of why PCHS cannot enroll Narez, a high-school dropout.

Keith Diggs, an attorney with the Institute for Justice, is representing PCHS, Smith and Narez. He is asking for evidence to back up why Narez should be barred from the school. The state plans to file a petition for rehearing, which is rare. If the rehearing is denied, the case will return to district court, where the state must provide an evidence-based argument as to why PCHS cannot teach horsehoeing to students who don't have a high school diploma.

The law had a well-intentioned goal when it was written: curbing schools that preyed upon underqualified students, giving them fake credentials and massive student loan debt. The California law applies to all schools, even those that don't accept student loans, like PCHS.

As written, the law prohibits PCHS from enrolling Narez because he doesn't have a high school diploma or GED, nor has he passed a government-approved exam stating that he is proficient in math, reading, writing and other criteria. The state has threatened to shut down the horse shoeing school because PCHS doesn't require that students take the test.