ANNAPOLIS, Md. -- Gov. Martin O'Malley introduced legislation Wednesday aimed at strengthening the state's hand in keeping the Preakness Stakes horse race in Maryland, fearing loss of the Triple Crown event would badly damage Maryland's struggling equine industry.
The future location of the Preakness has been thrown into question because of federal bankruptcy filings by the race's current owner, Magna Entertainment Corp., of Canada.
O'Malley and other state officials pointed to the bitter memory of losing the Baltimore Colts football team 25 years ago as an example of why the state must do all it can to protect the storied horse race, which is a big-time annual revenue raiser. More than 112,000 people attended the Preakness last year
The legislation would increase the state's authority to either buy or exercise eminent domain over Pimlico Race Course, where the Preakness is held, as well as Laurel Park and the Bowie Race Course Training Center in Maryland.
But it's unclear how the legislation could influence the outcome of a federal bankruptcy proceeding, which has its own guidelines for trying to pay companies that are owed money.
Maryland officials say the state has a statutory right of first refusal in case the course were put up for sale. Austin Schlick, an assistant attorney general, said the measure is designed to strengthen that statutory power. It would do so by specifying those rights apply to the course and the race.
"It's important in a bankruptcy proceeding like this to be able to take the initiative and not just to be reactive, and that's what we're trying to accomplish," Schlick said.
The legislation would also allow the Maryland Economic Development Corporation, a state agency, to issue bonds to buy the facilities. However, a purchase would most likely be made to keep the race in Maryland until someone else came along to buy it.
"I think the intent of the state is to make sure that it remains here and finds the appropriate administration and ownership of that," House Speaker Michael Busch said. "We don't ultimately want to be the long-term owners of the Preakness."
O'Malley described the measure as an effort to give Maryland the "maximum amount of flexibility" to keep the second leg of the Triple Crown in the state.
"There's no guarantee, but that is why -- that's exactly why -- we want to do everything we possibly can before the legislature adjourns to protect the Preakness," O'Malley told reporters.
The Preakness has been held in Baltimore for more than 100 years, and it is considered the centerpiece of Maryland's horse racing industry. The administration estimates the industry supports 5,800 direct jobs and 15,000 indirect jobs and has an annual economic impact of $1.5 billion.
The administration estimates that horse farms in Maryland occupy more than 200,000 acres of farmland, acting as a buffer to sprawl.
Lawmakers will have to act fast on the legislation, because the General Assembly is set to adjourn Monday, but O'Malley said presiding officers in both chambers recognize the value of the race.
To help make his point, the governor recalled what remains a haunting memory for Baltimore sports fans of 1984, when Mayflower moving trucks carried the Colts team, its history and records away in a secretive move before dawn. Owner Robert Irsay took the team to Indianapolis.
"I don't believe that any of them wants to be in a position, where we're looking back over our shoulders at the Mayflower moving vans and saying, 'Golly. I wish we had acted," O'Malley, a Democrat, said.
Schlick said Maryland officials are working with Magna to try and work out an agreement "in a friendly way."
"The state will make a decision of when and if action by the state is necessary," Schlick said. "It may prove not to be necessary. That decision doesn't need to be made today. What needs to be done now is give the state the tools so that if it does prove necessary, we'll be able to act."
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On the Net:
Read House Bill 1578: http://mlis.state.md.us/2009rs/billfile/HB1578.htm