On Friday Baltimore Mayor Stephanie Rawlings-Blake announced that the city’s five-year contract with Baltimore Racing Development LLC had been canceled, imperiling the 2012 and future Baltimore Grands Prix.
BRD owes the City of Baltimore nearly $1.5 million for the 2011 event, and reportedly owes another $12 million to investors. The city also spent $7.75 million in state and federal highway funds and additional funds lent by the Maryland Stadium Authority, according to BaltimoreBrew.com.
After repeated warnings from the city BRD was not able to reorganize or find finds to meet its debts, leading to Baltimore cancelling the deal.
“It is with great disappointment that we announce the termination of the City’s agreement with Baltimore Racing Development,” said Mayor Rawlings-Blake in a statement on the city’s website.
“Like many Baltimoreans, I hoped that BRD would restructure, recapitalize and begin to pay taxes and debts by the December 31 deadline. BRD’s corporate officers and managers have failed to take the appropriate steps to put the company on a sustainable path forward.”
