Sagi Genger believes something big is brewing at “probably one of the most important sites for development in an urban area in the United States.”
Genger is the CEO of Rally Development, which owns the 131.5-acre Derby Lane site in St. Petersburg. The property at 10490 Gandy Blvd. in St. Petersburg was formerly home to a greyhound racing track and continues to host poker tournaments and other table games.
The expansive, sought-after site is also home to a new version of the uber-popular Wagon Wheel Flea Market and special events, including one that recently attracted nearly 18,000 people. Genger and his team are now marketing the property and “trying to figure out what makes the most sense – both for the community and for us.”
“This is a multi-100-million-dollar, if not a multi-billion-dollar, development project,” Genger told the Catalyst. “To have so many acres available in the middle of a metropolitan area is very, very unusual.”
Florida outlawed greyhound racing in 2020, sealing Derby Lane’s fate. St. Petersburg Kennel Club Inc., which operated the city’s gambling palace for a century, merged with Rally Acquisition Co. in April.
Public records also show that the firm simultaneously secured a $58.25 million loan tied to 12 parcels owned by the Kennel Club. Rally recently tapped Berkadia to market what the commercial real estate services company called a “once-in-a-generation placemaking opportunity at the center of the Tampa Bay region.”
Or, as Genger described it, “the most important site for development in the area.”
Genger said his group “has been taking our time” with the site “because it is such a large piece of land, and the opportunities are so fantastic.” They believe there is a “scarcity” of local retail complexes and entertainment venues, and are “focusing on that as part of some other larger development.”
Rally has received proposals for an amphitheater, “and we’re open to it,” Genger said. He also noted that the gaming business is “doing extraordinarily well.”
“We’re trying to figure out what other businesses would complement it,” Genger said of the poker room. “An amphitheater may very well be an important addition. But all sorts of retail opportunities are there, too.”
Rally will likely retain control of the Win! Derby Poker Room, which also hosts simulcasts from dog and horse tracks nationwide. Genger said it is running more efficiently under new ownership and attracts 16,000 people weekly.
“I think it would require a very, very unusual set of circumstances where we don’t keep the gaming business on the site,” he added.
A residential component remains a question mark. Genger said the international real estate development community has shown “strong interest” in the site, and there are “all sorts of positives and minuses” associated with those proposals.
Rally retained The St. Petersburg Group (SPG) to steer stakeholder strategies, navigate regulatory requirements and foster community partnerships for the Derby Lane project. One of the local firm’s first steps was to rehome Shawn Yang’s Farmers and Flea Bazaar, which is mostly comprised of former Wagon Wheel vendors.
Joe Hamilton, cofounder of SPG and publisher of the St. Pete Catalyst, said the “Derby Lane leadership knows the importance of local alignment in developing such an important property.” He, like many other area residents and visitors, has “fond memories of visiting the Wagon Wheel as far back as the ‘80s.”
“Reactivating such a unique piece of St. Pete’s history has been gratifying,” Hamilton said of the longtime Pinellas Park flea market, which closed in March 2020.
Genger said a few thousand people attend the bazaar every weekend. He believes the “immediate success” of the markets, weekly car shows and monthly food truck rallies demonstrates that “the population is hungry for places to go” and community engagement.
“We’ve opened the property up,” Genger continued. “We’re welcoming the general public in, whether it’s for those events, gaming or, hopefully, a combination of both.”
Derby Lane sits within a coastal high-hazard zone, and some of the land is prone to flooding. Rally has approximately 95 developable acres.
The site has long been considered a potential home for a new Tampa Bay Rays stadium. “That’s a proposal that we’d be very excited to entertain,” Genger said. However, he is unsure of any interest.
Genger expects to “reach conclusions” on the property’s future in February or early March, after reviewing proposals. He said the possibilities are “almost endless.”
“It’ll eventually be developed into something more formal,” Genger added. “But in the meantime, we have a lot of these events going on, and people should come and enjoy it – just have a good time.”
This content provided in partnership with StPeteCatalyst.com.
