Grand Prix Organizer: High-Interest Loan Led To Unpaid Taxes

BALTIMORE (AP) — The former CEO of Baltimore Racing Development says interest payments from a two-month loan taken out before the start of the Baltimore Grand Prix ended up draining the funds needed to pay city taxes.

The Baltimore Sun reports that organizers took out a $1.1 million loan that they believed was necessary to save the event. Jay Davidson says the loan allowed the lender to collect more than $500,000 in interest and other charges.

Organizers are facing more than $12 million in debt and have said there is less than $100,000 in cash on hand. The taxes owed to the city include more than $450,000 in city amusement and admissions taxes.

Davidson says when he left the company, he was assured there was enough money to pay the amusement taxes.

(Copyright 2011 by The Associated Press. All Rights Reserved.)


One Comment

  1. Bernard Mc Kernan says:

    Who did he borrow the money from, the mafia mob? Maybe one of those neighborhood pay-day loan co’s up on Greenmount ave that constantly stiff the blacks.

  2. Wiseguy says:

    ……just have them pay the “Vig” or the “Juice”for now.

  3. frank coffee says:

    They didn’t care where the money came from,or the interest rate. These cons knew that we,the taxes payers,would be stuck with interest if they did not pay.
    Why didn’t THE SUN Papers,and other local medias,report this stuff before the city elections? Where was the City’s oversite .This was a snake oil deal from the start. P T Barnum was right,”there’s a sucker born every minute”. In our case ,we elect them every four years.

  4. george says:

    Frank, You nailed it.

  5. RacerBoy says:

    All four wheels are off the BRD race car. Looks like a full course waving yellow flag right now. Inexperience. Arrogance. Greed. Shame on both the City of B and the BRD for not doing ‘due diligence’ before the event took place. The BGP 2012 race looks pretty fragile now.

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Baltimore

Track Weather On The Go With Our App!
Your Podcast Network

Listen Live