News Summary
The New Orleans City Council has unanimously approved the creation of a Fair Grounds Interim Zoning District to protect the Fair Grounds Race Course. This emergency zoning measure aims to restrict new land use permits to only those directly related to horse racing, ensuring its operation as a racetrack amidst potential changes in ownership. The move comes after Churchill Downs Inc. indicated the possibility of surrendering its Louisiana racing license due to financial challenges exacerbated by a recent Supreme Court ruling. The council seeks to preserve the site’s cultural significance and safeguard local jobs.
New Orleans – The New Orleans City Council has taken a decisive step to protect the future of the Fair Grounds Race Course by unanimously approving the creation of a Fair Grounds Interim Zoning District. This emergency zoning measure restricts the issuance of new land use permits at the Fair Grounds, allowing only those directly related to horse racing or supporting services. The primary aim is to ensure that the Fair Grounds continues to operate as a racetrack, regardless of any future changes in ownership.
The matter gained urgency following Churchill Downs Inc. (CDI) announcing its potential plans to surrender its Louisiana racing license due to severe financial challenges. A recent ruling by the Louisiana Supreme Court deemed Historical Horse Racing (HHR) machines unconstitutional without local voter approval, thereby eliminating a significant source of revenue for CDI. Previously, HHR machines had constituted nearly half of CDI’s annual revenues and over 70% of its profits after taxes in Louisiana.
In 2004, CDI acquired the Fair Grounds, which has a storied history dating back to its opening in 1837, making it the third oldest operating racetrack in the United States. The course is not only a venue for horse racing but also hosts cultural events such as the New Orleans Jazz & Heritage Festival, underscoring its importance to the local community.
In response to the challenges presented by the recent Supreme Court ruling, state lawmakers are advancing legislation aimed at designating the Fair Grounds as a Louisiana Historic Site. This would provide additional safeguards against potential redevelopment and protect its cultural significance. Alongside this initiative, permanent land use regulations specifically for the Fair Grounds are slated to be introduced by Councilmember Joe Giarrusso in upcoming meetings.
The actions taken by the City Council reflect widespread concern regarding the potential cultural and economic fallout from losing the Fair Grounds. CDI reports a significant decline in profitability directly tied to the ruling on HHR machines, indicating that the operation of the Fair Grounds is contingent upon the existence of these revenue-generating machines. The organization has expressed that ongoing legislative efforts to increase the availability of video poker machines at bars and truck stops could further undermine their financial stability.
CDI’s Chief Executive, William Carstanjen, noted a lack of meaningful dialogue with state officials as a key factor contributing to the potential surrender of the Fair Grounds license. If CDI follows through with this decision, it would present a critical loss to Louisiana’s equine industry, with widespread repercussions for jobs and local businesses that rely on the Fair Grounds as a pivotal economic hub.
In addition to job losses, closure of the Fair Grounds could result in tens of millions of dollars in lost tax revenue for both state and local governments. CDI has emphasized that closing the facility would detrimentally impact the economic landscape in New Orleans and threaten the livelihoods of numerous individuals associated with the racetrack.
The initiative led by Councilmember Joe Giarrusso seeks to secure the ongoing operation of the Fair Grounds as a racing facility and prevent its transformation into a casino. Discussions continue between CDI, city leaders, and state officials as all parties navigate the complex landscape surrounding the preservation of racing traditions in New Orleans. The outcome of these discussions could determine the future of one of the city’s iconic institutions and its vital role in the local economy.
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Additional Resources
- WDSU News
- Wikipedia: Horse Racing
- NOLA.com
- Google Search: Fair Grounds Race Course
- WWL-TV
- Google Scholar: Louisiana horse racing
- Fox 8 Live
- Encyclopedia Britannica: Horse Racing in Louisiana
- WDRB News
- Google News: Churchill Downs Louisiana
