Apr. 8--Gov. Martin O'Malley's proposal to give the state the power to take the Preakness Stakes by eminent domain was introduced Wednesday morning in the General Assembly, where it is expected to pass before the 2009 session ends on Monday.

The emergency bill would authorize the state to acquire by eminent domain the Preakness and Maryland's horse-racing tracks from its bankrupt owner, Magna Entertainment Corp., though O'Malley said "our hope is that we might not have to resort to these powers."

Magna, the Canadian owner of Pimlico Race Course and Laurel Park, filed for bankruptcy in early March and wants to sell its Maryland assets. The bankruptcy has sparked widespread concern in Annapolis that the Preakness, which runs at Pimlico, could be sold and transferred out of state.

Austin Schlick, the chief of litigation in the attorney general's office, said Wednesday that the state has been approached by attorneys for Magna about reaching a "friendly" agreement in which the state's interests in retaining the Preakness might be respected.

Without approval from a federal judge, Maryland likely cannot unilaterally exercise its powers of condemnation to take assets under bankruptcy protection, according to bankruptcy experts.

A hearing of Senate and House of Delegates lawmakers on the O'Malley legislation is scheduled for 9 a.m. Thursday in Annapolis.

David Cordish, the Baltimore developer who is interested in purchasing Magna's assets and keeping horse racing at the tracks, said O'Malley's bill was a "very interesting, clever way to ensure" that the second jewel of the Triple Crown stays in Baltimore.

Speaking with The Baltimore Sun's Dan Rodricks on WYPR-FM Wednesday afternoon, Cordish said he believed the prospect of future slots revenue would make Maryland's faltering horse racing assets valuable in the private market. Cordish has also proposed to build a massive slot machine parlor at Arundel Mills mall.

A competing bid by Magna for slots at Laurel was rejected by the state's slots location commission because the company failed to include a deposit with its proposal. Alan Rifkin, an attorney for the Maryland Jockey Club, which is a Magna subsidiary, said Wednesday that the Court of Appeals has agreed to hear an appeal of that rejection.

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