Gary Hartunian, the Southern California horse owner and real estate developer, has signed a two-year lease for the operation of Turf Paradise in Phoenix, according to an official involved in the process.
Tom Ludt, a seasoned racetrack executive who Hartunian has tabbed to run the track, said on Wednesday that the deal was signed last week. The group does not expect to take over formal operation of the track until late this year, after the licensing process is completed. In Arizona, licensing generally takes 90 days or more.
Hartunian, the chief executive of Landmark LA Capital Group, is the latest in a string of developers to target Turf Paradise over the last three years after the track’s longtime owner, Jerry Simms, began seeking buyers. Two other potential deals fell through.
Ludt said the agreement includes several options for one-year renewals after the initial two-year lease. Under the agreement, Simms, who bought the track for $33 million in 2000, will be allowed to explore the sale of the property.
Hartunian has said that he wants to maintain racing at Turf Paradise while simultaneously scouting for property for a new track in the Phoenix area. The current 213-acre property is located on the northwest side of Phoenix, in a metro area that has rapidly grown over the past 30 years.
Simms was granted a permit for the upcoming live race meet, which will begin on Nov. 10, at a recent meeting of the Arizona Department of Racing. The permit will be transferred to Hartunian once the licensing process is complete, Ludt said.
The track currently has a three-year agreement with horsemen guaranteeing 100 live racing dates a year.
Ludt said that he plans to focus on “upgrading” the track over the short-term and promoting live attendance. The track races during the prime weather dates in Phoenix, but its live race cards are held on weekdays to capitalize on the simulcast market.
“We think there’s huge potential there,” said Ludt, a former general manager of Santa Anita Park in Southern California. “We cannot ignore the ontrack experience. I’ve said that for years, and now it’s time to put my money where my mouth is.”
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