The longtime owner of Turf Paradise in Phoenix, Ariz., has reached an agreement to lease the track to Gary Hartunian, a California real-estate executive and prominent horse owner, according to both sides in the transaction.
Under the deal, Hartunian would lease the track for the next two years while exploring the possibility of building a new track in the Phoenix area. Jerry Simms, who bought Turf Paradise for $33 million in 2000, would be free to explore a sale of the track during that timeframe, Hartunian said.
“He’s going to go try to sell the land while we’re going to be in there for two to five years,” Hartunian said Friday morning. “At least two years. Then we’re going to see if we can find some land for a new track.”
Simms said Friday morning that he could not comment on specifics of the deal, but he confirmed the agreement is in place, pending several construction projects on the backside.
“I think it’s going to be very, very good for racing in Phoenix,” Simms said.
Last year, the track and its horsemen reached a three-year deal guaranteeing 100 days of live racing at the track, which typically runs from November to May. Simms said Hartunian would be bound to that agreement for its two remaining years.
Simms announced that he was closing Turf Paradise three years ago, citing a desire to retire and spend more time with his family. But he backtracked on that pledge shortly thereafter and began exploring a sale of the track.
Two potential deals to sell the track have dissolved over the past two years. Both centered on the redevelopment of nearly half the 213-acre property, and one was explicitly tied to legislative help that would have included the legalization of historical horse racing machines for the property.
Hartunian began racing in Southern California a decade ago under the stable name Rockingham Ranch. He is the president and chief executive officer of Landmark LA Capital Group, a real-estate development company that specializes in residential buildings.
“I’m good at buying things that people have put to sleep,” Hartunian said. “I like making things look nice again. There’s no magic to it, just a lot of hard work. The L.A. area is going through its own special problems right now, and I’m looking forward to working in Phoenix.”
Hartunian said that Tom Ludt, a former executive with Frank Stronach’s Magna Entertainment, would be brought on board as the general manager. Hartunian and Ludt have been working with Simms on putting together a deal for nearly two years, Hartunian said.
During its latest meet, Turf Paradise benefited from last year’s closure of Golden Gate Fields in Northern California, which led to a surge in interest for stalls from relocating trainers. Although concerns over the condition of the track and its maintenance equipment led to a delay in opening the track, the average handle per Thoroughbred race over a 54-day meet was up 15 percent, according to data compiled by Daily Racing Form.
The average purse for a Thoroughbred race was up 37 percent, from $17,474 last season to $24,095 this year, according to the DRF data.
Live racing at Turf Paradise is supported by a network of independent OTBs around the state, providing year-round revenues from full-card simulcasting. Those revenues will continue to flow to the track and its horsemen under the lease.
Earlier this week, officials for the Horseracing Integrity and Safety Authority were at the track to assess ongoing work to the track’s rail and backside, according to officials. Brian Duncan, the racing enforcement and operations manager for the Arizona Department of Racing, said at a meeting of the department on Thursday that 14 barns on the backside of the track are still in need of repair, according to a recording of the meeting posted on the ADR’s website.
“I am confident Turf Paradise and their team will complete this in a timely manner,” Duncan said on the recording.
At the meeting, the department voted 3-0 to issue a three-year conditional permit to the track. Simms said at the meeting that he needed the permit as soon as possible to allow stall applications to be sent out.
The deal between Simms and Hartunian was first raised at the meeting. On Friday morning, Simms said that he is looking forward to retirement.
“I want to spend more time with my family, but I also want racing to continue,” Simms said.
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