Noting rising construction costs related to tariffs and what it calls a slowing economy, Churchill Downs Inc. (CDI), home of the Kentucky Derby, is pausing a multiyear, roughly $900-million construction project it had proposed as the largest renovation and expansion in the race track’s 150-year history. 

The project, announced in February by the company running the Louisville-based horse race track, would have used Calhoun Construction Services as construction manager/contractor and Populous as architect. CDI is the most profitable race track owner in the U.S., owning more than 20 horse-racing tracks and casinos in the U.S.

Calhoun has served as construction manager/contractor for Churchill Downs for 11 years and worked on various projects including a $180-million renovation of the grandstand, which was completed and unveiled during the week ahead of the May 3, 2025 Kentucky Derby. 

The $900-million work that CDI is pausing covers between $455 to $465-million to rebuild and expand The Skye Terrace, which would include replacement of 11,500 existing seats with 13,300 seats; $320- to $330-million for replacement of infield seats at the Conservatory;  $60- to $70-million for replacing temporary buildings with permanent buildings for infield general admission and $45- to $55-million in infrastructure work. 

“The decision to delay these construction projects is due to increasing uncertainty surrounding construction costs related to trade and tariff disputes as well as current macro-economic conditions,” CDI said in a statement. 

“We understand why they are pausing and will partner with them on how to plan and sequence the project for the future,” said Jeff Palmquist, operations manager for Calhoun Construction. 

The racetrack company is moving forward with Calhoun and Populous on smaller projects that will cost between $25- to $30-million. These include renovation of the existing Finish Line Suites, which will update 15 suites overlooking the finish line and increase the capacity to 750 guests; add a bar and increase  capacity to 300 guests of the Trophy Room, and provide updated finishes and other enhancements to The Mansion, which was built in 2013. These projects are slated to be completed by May 2026.  

Being onsite ahead of the Derby as projects are unveiled is a thrill for Palmquist, who likes seeing guests’ reactions to work, such as the grandstand, that was completed under a tight deadline. 

“The schedules are very tight,” he says. “They are always firm and we aren’t going to ask them to move the Kentucky Derby back.” 

Looking ahead, CDI will monitor conditions to decide if and when to move forward with the work on pause.

“In the coming months, CDI will assess the evolving economic landscape and evaluate any changes to the timing and sequencing of these multi-year projects,” CDI said in a news release. 

A renovation by Calhoun and Populous of the racetrack’s paddock that was completed in 2024 won a Best Project award in the category of Sports/Entertainment in ENR Midwest’s Regional Best Projects contest. The project included a horseshoe-shaped structure with a second-level courtyard, covered box seating flanking the walking ring, two video boards and two new clubs offering views of the stalls and paddock.