Developer backs out of Turf Paradise sale as racing, simulcasting canceled at horse track

A plan to redevelop and potentially preserve horse racing at Turf Paradise in north Phoenix hit a major snag when the developer under contract to buy the site decided to terminate the purchase.

James Watson, managing director of CT Realty, said the company had been excited about the redevelopment, which they thought would be a win for all parties involved, including the city, the state, the horse racing industry and the new development.

CT Realty had submitted plans to the city to redevelop the property on Bell Road near 19th Avenue but had hoped to keep the horse racing portion operational, Watson said.

Watson, a former member of the California Horse Racing Board, was advocating at the state level to legalize historical horse racing machines, an additional form of horse wagering that he said could keep the track viable and generate money for Arizona.

However, the project was “becoming too demanding” as the plan started to face backlash from horsemen who thought the redevelopment would end horse racing at the site, he said. Watson said the plan was always to try to preserve the track, but said the horsemen perceived the redevelopment effort as a threat to the industry.

The development group also heard from some Arizona tribes that operate gaming facilities, raising concerns that the historical horse racing machines could infringe on their gaming operations, a concern Watson said would not have been accurate.

Watson said he has a close relationship with Jerry Simms, the owner of the track, who announced Monday he was retiring and would not be holding live racing or off-track betting at Turf Paradise this year.

The rezoning effort will move forward, Watson said, but with Simms leading the project, not Watson.

Simms said he has other interested buyers for the track but could not name them because of nondisclosure agreements. However, he said he believes they would "be good for Arizona."

The rezoning case that has been filed with the city will give the whole site uniform zoning, allowing a potential redevelopment, Simms said.

Paul Gilbert, the zoning attorney for the project, said the zoning effort is crucial, because while most of the property is zoned already for a commerce park, the 28 acres in the case is not.

"There has been keen interest from several strong potential buyers, but the property will need to be rezoned," Gilbert said, adding that buyers remained interested in the property even when it was in escrow to be sold.

Gilbert said the case has gotten strong recommendations for approval from city staff members and has been supported by nearby neighborhoods. The change is consistent with the already allowed uses on the rest of the property, and with the employment district that already has been adopted, Gilbert said.

The application submitted for the Phoenix general plan amendment for the project was heard by the Deer Valley Village Planning Committee in August, but a hearing that had been scheduled for the city’s Planning Commission was delayed until November.

Gilbert said the continuance will allow the zoning portion of the case to be heard by the Village Planning Committee ahead of both cases being heard by the Planning Commission.

Departing developer: 'We couldn’t be more disappointed'

Watson, who is stepping away, agreed the site is “a great piece of infill real estate.”

“We were met with great reception for the redevelopment, that would have created a lot of value and a lot of jobs,” Watson said. “We were also interested in salvaging horse racing, which had been struggling.”

After seeing the opposition from the horsemen, Watson said CT Realty determined “there are better places to spend our time,” and decided to end the contract to purchase the site.

However, he wished it would have turned out differently.

“We couldn’t be more disappointed that this is not going ahead, at least not on our watch,” he said.

What has happened at Turf Paradise this year

Turf Paradise, where live racing and simulcasting is ending effective Oct. 1, has operated at the same site since January 1956.

The opening of a 2023-24 racing season already had been in question. In April, Simms had signed an agreement to sell the 1,400-acre facility to CT Realty for an undisclosed price.

In August, the track announced it would not open in early November, the typical start for new seasons.

On Monday, Simms announced that after 23 years of operating the racetrack, he was retiring to spend more time with his family.

"The last 23 years have been a great experience," Simms said of his time with Turf Paradise.

Turf Paradise maintained 37 off-track betting sites throughout Arizona, and those are scheduled to close as well. For the sites to remain operational, live racing would be required, the news release said.

Reach the reporter at cvanek@arizonarepublic.com. Follow her on X, formerly Twitter @CorinaVanek.

This article originally appeared on Arizona Republic: Developer backs out of Turf Paradise sale as racing, simulcasting end