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.)