After a few weeks of more vendors coming forward for lack of payment to the State, City and Vendors by the Baltimore Racing Development group, the State and the city has ordered the group to restructure and pay up its debts or it will terminate the contract for the race.
“BRD must immediately restructure and recapitalize or sell itself to investors in order to make the event profitable in the future,” Parthemos said. “BRD must also work immediately to pay debts owed to the City and taxes owed to the City and State by December 31, 2011, aggressively work to repay any debts to vendors, and present a restructured company and management team, or the City will terminate its contract with BRD.”
The city said BRD had been speaking to the State Comptroller’s Office, which collects taxes for local jurisdictions, about a payment plan for the $487,971 in taxes owed to the city. The city said no tax abatements will be made.
Just this week, several vendors said they are in jeopardy of losing their business as result of the racing organazations actions. Several local Baltimore television stations have profiled businsess including the traffic sign company that made many of the street signs for the event, who said she will be forced to close their doors over a 200k unsettled debt.
Many of the vendors believe that former CEO Jay Davidson sold the city and the state on a bad bill of goods knowing how much it really costs to host an event of this nature. Ask any of the fully sanctioned tracks that host races and they will tell you that the numbers were extremely skewed.
Our staff spoke with several track owners and people in the racing community that wished to not be mentioned as part of our article and they stated that they planned the race well over budget and now are seeing the backlashes for it. The State of Maryland should shame theirselves for lettting someone come in the city and take advantage of hardworking business people that may now lose their businesses.
The city has given the BRD group until December 31, 2011 to repay their debts to the city totalling almost 750k as well as their vendors and a new management group or it will terminate the five year deal they had to host the race. The BRD group has at least 1.8 million of outstanding debts to the city and vendors.