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

Belmont | Sarah Andrew

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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.

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