Gov. proposes $455 million investment of year-round modern Belmont Park Hochul bets on horse racing in Elmont, LI

by Naeisha Rose Associate Editor

Last month, Gov. Hochul revealed that she wanted a $455 million overhaul of Belmont Park in Elmont, LI, and the transfer there of Aqueduct Race Track meets in her $227 billion budget proposal.

The purpose of the consolidation is to unify the horse racing facilities at Belmont to shore up business at the New York Racing Association, which owns both entities, create one world-class downstate entertainment venue for the sport and free up 45 acres of land at Aqueduct, in South Ozone Park, that could be used for mixed-used development like housing, according to a 2022 analysis of the economic and fiscal impact of the 30-year loan agreement.

The $455 million initiative would not only unlock space at Aqueduct, but also modernize Belmont Park as it implements year-round programming — it currently operates for one month during the spring — and leverage foot traffic at UBS Arena, the adjacent entertainment venue for hockey games, boxing, comedy and musical entertainment, according to findings from the analysis.

In addition, it would generate $1 billion in economic activity from construction, create 3,700 temporary jobs and $45 million in local and state tax revenues and advance workforce development goals through Minority and Women-owned Business Enterprises and union labor, according to the findings. An estimated $155 million and 740 permanent jobs would be expected from spending and operations, respectively.

Based on an appraisal of Aqueduct, the state, which owns the property, could also sell the land at 110-10 Rockaway Blvd. in South Ozone Park for over $1 billion, according to the International Valuation & Advisory, LLC.

The End Horse Racing Subsidies Coalition, which comprises New Yorkers for Clean, Livable, and Safe Streets; People for Ethical Treatment of Animals; Alliance for Quality Education; and NY Communities for Change conducted its own analysis of the investment and believe it’s a waste of money for a dying industry.

John Scheib of Scheib Associates, who provided the financial and analytical research for the coalition, told the Chronicle it is unlikely that NYRA will be able to pay back the loan.

Looking at attendance data from 1978 to 2019 — prepandemic — foot traffic from Belmont and Aqueduct has dropped 88 percent and 94 percent, respectively, according to Scheib.

“The information comes New York State Gaming Commission reports,” Scheib said. “We are loaning NYRA nearly a half a billion dollars to build a new facility from two of the largest racing tracks in America, which are way too large for their current attendance. They are going to bulldoze those two tracks for a luxury track.”

Why redevelop space when there is record low attendance, asked Scheib.

“The Constitution of New York, Article I, Sec. 09, states that wagering on horses can be permitted by the Legislature if it makes reasonable revenue in support of the government,” he said. “In 1978, NYRA was making good money. They were making $32 million. Now they are making $8.5 million. It’s a gambling business paying almost no gambling taxes in New York State.”

On the other hand, the lottery, casinos and mobile sports betting enterprises are paying billions toward the state Treasury.

State Sen. Joe Addabbo Jr. (D-Woodhaven), chairman of the Committee on Racing, Gaming and Wagering, disagrees with Scheib.

“After I weighed the pros and cons, the benefits outweigh the negatives,” Addabbo told the Chronicle. “The state would make over $80 million in profit. It gets Aqueduct land ... and we will make NYRA more efficient by the consolidation of the two racetracks and we protect and create more jobs. There will also be economic fiscal growth.”

Addabbo hates the idea of seeing Aqueduct go, but he knows it’s past its heyday.

“This will not happen overnight, it will take years before Belmont gets built,” Addabbo said.

In the 1990s, Addabbo said that he was always concerned about what would happen to the land at Aqueduct. However, now with Resorts World Casino, which he believes is on the cusp of getting a full gaming license and has been a good neighbor to residents for the past 11 years, he sees any expansion of the gaming facility as beneficial to the community.

“It would create thousands of jobs, additional retail and restaurants,” Addabbo said. “It’s a totally different scenario than what we envisioned in the ’90s.”

Addabbo said that he would evaluate and analyze the process along the way if it moves forward.

Assemblyman Clyde Vanel (D-Queens Village) and Assemblywoman Stacey Pheffer Amato (D-Howard Beach), Queens members of the Committee on Racing, Gaming and Wagering, were not available for comment. Q