Preakness is a significant economic driver for the state?s horse racing industry, which counts on a big weekend to fund its operation. But the event is equally important to neighborhoods surrounding the track, local leaders said, even if area businesses don?t see a direct impact on the big day.
Under state legislation, a portion of the proceeds generated by Pimlico Race Course is returned to the neighboring communities to be used for local projects and support.
“[Preakness is] a source of the funds, so even though money?s not spent in the barbershop or the local package store, it?s coming back to the community … for general issues we need money for,” said Councilwoman Rochelle “Rikki” Spector, who represents the Northwest Baltimore neighborhoods around the track. “It?s crucial to the area.”
Last year?s Preakness and the week of events leading up to it resulted in $23.8 million in direct and indirect expenditures and $1.4 million in state and local taxes, according to a study conducted by the state Department of Business and Economic Development.
Race-day expenditures statewide totaled $7.5 million. Visitors to Preakness and the Preakness Celebration, the nine days of events leading up to the race, spent an estimated $5 million, according to the study.
Spector said the funds are used to support community capital projects and maintenance.
The funds are dispensed to the Pimlico Community Development Authority, a panel composed of community leaders and chaired by city Department of Planning Director Douglas McCoach. Spector said the annual amount has declined in recent years as racing revenues have slid but is still in the “hundreds of thousands” of dollars. Exact figures were not immediately available from the city?s planning or budget departments Thursday.
While those funds provide a boost to the neighborhoods around the track, Preakness won?t necessarily bring a flood of money directly through the doors of local businesses Saturday.
“These people that come to the Preakness aren?t in the neighborhood at all,” said Larry Shugarman, president of the Pimlico Community Council. “They?re more interested in getting into the race track and enjoying themselves inside, not outside. There?s parking, lemonade stands that people set up around the racetrack, they make some money, but that?s not the businesspeople.”
