MD. Economic Development Code Ann. §  10-646.1 (2021)
2021 Maryland Statutes|Economic Development|Division II - Independent and Regional Development Units and Resources|Title 10 - Statewide Development Resources and Revenue Authorities|Subtitle 6 - Maryland Stadium Authority|Part V - Restrictions on Bonds and Borrowing|Section 10-646.1 - Compliance by Authority -- Information Provided -- Issuance of Bonds -- Long Term Agreements

    (a)    Except as allowed by § 10–639 of this subtitle, to finance the planning, design, and construction of any segment of a racing facility, the Authority shall comply with this section.    (b)    At least 45 days before seeking approval of the Board of Public Works for each bond issue or other borrowing, the Authority shall provide, in accordance with § 2–1257 of the State Government Article, to the fiscal committees of the General Assembly:        (1)    a comprehensive financing plan for the relevant racing facility that includes:            (i)    the aggregate amount of funds needed for the racing facility to be financed with the proposed bonds;            (ii)    a description of the racing facility to be constructed or renovated;            (iii)    the anticipated total debt service for the proposed bond issue;            (iv)    the anticipated total debt service when combined with the debt service for all prior outstanding bond issues for racing facilities; and            (v)    anticipated project costs of at least $180,000,000 for the Pimlico racing facility or $155,000,000 for the Laurel Park racing facility; and        (2)    for any planned expenditures at the Laurel Park racing facility site, a plan for the improvements necessary to ensure that the condition of any part of the site where individuals reside is satisfactory for human habitation and meets the minimum housing and sanitation standards in Anne Arundel County.    (c)    (1)    A bond issued to finance planning, design, and construction or renovations of or improvements to a racing facility:            (i)    is a limited obligation of the Authority payable solely from money pledged by the Authority to the payment of the principal of and the premium and interest on the bond or money made available to the Authority for that purpose;            (ii)    is not a debt, liability, or a pledge of the faith and credit or the taxing power of the State, the Authority, or any other governmental unit; and            (iii)    may not give rise to any pecuniary liability of the State, the Authority, or any other governmental unit.        (2)    The issuance of a bond to finance the planning, design, and construction or renovations of or improvements to a racing facility is not directly, indirectly, or contingently a moral or other obligation of the State, the Authority, or any other governmental unit to levy or pledge any tax or make any appropriation to pay the bond.        (3)    Each bond shall state on its face the provisions of paragraphs (1) and (2) of this subsection.    (d)    (1)    In this subsection, “long–term agreement” includes a lease, operating, joint venture, or management agreement with a minimum term that coincides with or exceeds the initial term of the bonds issued for a racing facility.        (2)    Before issuing any bonds for any segment of a racing facility, the Authority shall ensure that the following agreements have been executed:            (i)    subject to paragraph (3) of this subsection, a long–term agreement regarding management and operations at the Pimlico racing facility site;            (ii)    subject to paragraph (4) of this subsection, a long–term agreement regarding management and operations at the Laurel Park racing facility site; and            (iii)    agreements between the Authority and project entities for the planning, design, and construction of a racing facility.        (3)    (i)    Subject to subparagraph (ii) of this paragraph, the long–term agreement required under paragraph (2)(i) of this subsection shall:                1.    ensure the continuity of the Preakness Stakes at the Pimlico racing facility site;                2.    ensure the MJC Entities’ sole, exclusive, and unconditional rights to:                A.    manage and operate the Pimlico racing facility site subject to the exclusions and conditions in the long–term agreement;                B.    conduct at the Pimlico racing facility site thoroughbred training and racing, satellite simulcast wagering, advanced deposit wagering, and any other lawful activities;                C.    designate annually exclusive use periods for the conduct of live thoroughbred training and racing;                D.    maintain the track surfaces;                E.    operate satellite simulcast wagering, advanced deposit wagering, and any other lawful activities; and                F.    an option to reacquire the Pimlico racing facility site at the termination or expiration of the long–term agreement on mutually agreeable terms and conditions, subject to the approval of the Board of Public Works;                3.    require the conveyance or conveyances in fee simple of the Pimlico site, in whole or in part, to Baltimore City, the Baltimore Development Corporation or its successor or assigns, or any designated project entity, at the time and on the conditions established in the long–term agreement and subject to the Authority securing all the necessary development approvals and funding for the racing and community development project costs;                4.    establish the MJC Entities’ rights to:                A.    designate annually exclusive use periods for the conduct of live thoroughbred training and racing;                B.    maintain the track surfaces; and                C.    operate satellite simulcast wagering, advanced deposit wagering, and any other lawful activities;                5.    preserve the MJC Entities’ tangible, intangible, management, performance, distribution, intellectual property, advertising, concession, merchandising, sponsorship, media, streaming, naming, licensing, and commercial development rights, and any other rights identified by the MJC Entities’;                6.    subject to the operating agreements of the project entities, preserve the MJC Entities’ right to retain or designate revenues and profits associated with the MJC Entities’ rights and lawful activities; and                7.    subject to subparagraph (iii) of this paragraph, establish:                A.    the right of the Authority or an entity designated by the Authority to manage and operate the Pimlico Clubhouse and Events Facility, grounds, and any facility not designated for the MJC Entities’ year–round use;                B.    the obligation of the Authority or an entity designated by the Authority to operate, maintain as a first–class facility, in good condition, repair, and secure the Pimlico racing facility site during periods identified in the long–term agreement; and                C.    the obligation of the Authority or an entity designated by the Authority to cooperate with respect to the provision of adequate parking and efficient transportation plans around the Pimlico racing facility site.            (ii)    1.    Unless thoroughbred racing is no longer a lawful activity, or is otherwise rendered not commercially viable as a result of a change in law or regulation, the long–term agreement under paragraph (2)(i) of this subsection may not expire while any bond, debt, or other financial instrument issued by the Authority for the improvement of a racing facility remains unpaid.                2.    If thoroughbred racing is no longer a lawful activity, or is otherwise rendered not commercially viable as a result of a change in law or regulation, the parties to the long–term agreement shall notify the Board of Public Works at least 180 days before the expiration or termination of the long–term agreement.                3.    The notice required under subsubparagraph 2 of this subparagraph shall contain a wind down plan.                4.    The long–term agreement required under paragraph (2)(i) of this subsection shall contain dispute resolution provisions, including expedited review, in the event that there is a dispute among the parties regarding the existence of the conditions described in subsubparagraph 1 of this subparagraph or the contents of the wind down plan.            (iii)    The MJC Entities shall have:                1.    priority of use over the Pimlico Clubhouse and Events Facility and grounds for MJC Entities’ purposes related to racing, wagering, or other agreed–on uses; and                2.    the right to access and egress from the Pimlico racing facility site during periods identified in the agreement.        (4)    (i)    Subject to subparagraph (ii) of this paragraph, the long–term agreement required under paragraph (2)(ii) of this subsection shall:                1.    ensure that the Maryland Million is run annually at Laurel Park except:                A.    during periods of construction;                B.    if prevented from doing so by weather, acts of God, or other circumstances beyond the control of the racing licensee; or                C.    if the racing licensee and the Maryland Million, LLC agree to another location that is approved by the State Racing Commission;                2.    ensure the MJC Entities’ sole, exclusive, and unconditional rights to:                A.    manage and operate the Laurel Park racing facility site; and                B.    conduct at the Laurel Park racing facility site year–round thoroughbred training and racing, satellite simulcast wagering, advanced deposit wagering, and any other lawful activities;                3.    provide for the MJC Entities:                A.    grant of an interest in the Laurel Park racing facility site, in whole or in part, to Anne Arundel County or an entity or entities designated by Anne Arundel County, including any designated project entity, for a specified term, including renewals, and on the conditions established in the long–term agreement and subject to the Authority securing all necessary development approvals and funding for the racing and community development project costs;                B.    access to the Laurel Park racing facility site for parking and roadways;                C.    rights to the Laurel Park racing facility site at the expiration or termination of the long–term agreements on mutually agreeable terms and conditions;                D.    payment to Anne Arundel County, or an entity designated by Anne Arundel County, of an amount at least equal to the prorated amount of real property taxes paid in fiscal year 2020 for the Laurel Park racing facility site and any improvements on the site, unless otherwise agreed to by the MJC Entities and Anne Arundel County; and                E.    an obligation to maintain as a first–class facility, in good condition, repair, and secure the Laurel Park racing facility site during the periods identified in the long–term agreement;                4.    preserve the MJC Entities’ tangible, intangible, management, performance, distribution, intellectual property, advertising, concession, merchandising, sponsorship, media, streaming, naming, licensing, commercial development, and any other rights identified by the MJC Entities; and                5.    subject to the operating agreements of the project entities, preserve the MJC Entities’ right to retain or designate revenues and profits associated with the MJC Entities’ rights and lawful activities.            (ii)    1.    Unless thoroughbred racing is no longer a lawful activity, or is otherwise rendered not commercially viable as a result of a change in law or regulation, the long–term agreement under paragraph (2)(ii) of this subsection may not expire while any bond, debt, or other financial instrument issued by the Authority for the improvement of a racing facility remains unpaid.                2.    If thoroughbred racing is no longer a lawful activity, or is otherwise rendered not commercially viable as a result of a change in law or regulation, the parties to the long–term agreement shall notify the Board of Public Works at least 180 days before the expiration or termination of the long–term agreement.                3.    The notice required under subsubparagraph 2 of this subparagraph shall contain a wind down plan.                4.    The long–term agreement required under paragraph (2)(ii) of this subsection shall contain dispute resolution provisions, including expedited review, in the event that there is a dispute among the parties regarding the existence of the conditions described in subsubparagraph 1 of this subparagraph or the contents of the wind down plan.    (e)    The Authority shall enter into agreements with project entities or local entities for planning, design, and construction of the racing and community development projects at a racing facility site.    (f)    For fiscal year 2022 and each fiscal year thereafter, until the bonds that have been issued to finance racing facilities are no longer outstanding and unpaid, the Comptroller shall deposit into the Racing and Community Development Financing Fund $17,000,000 from the State Lottery Fund under § 9–120(b)(1)(iv) of the State Government Article.    (g)    If the money deposited in the Racing and Community Development Financing Fund in accordance with subsection (f) of this section is not needed for debt service or debt service reserves, the Authority may transfer those funds to the Racing and Community Development Facilities Fund.    (h)    If funds are needed for debt service or debt service reserves, the Authority may transfer money in the Racing and Community Development Facilities Fund to the Racing and Community Development Financing Fund.