[Jeff Lee]

By Michelle Ye Hee Lee The Republic | azcentral.com Wed Jan 23, 2013 7:43 AM

A popular northwest Valley racetrack likely will shut down after years of disputes with state and county regulators, the latest resulting in a cease-and-desist order this month by Maricopa County.

The county issued its order after a hearing officer found several violations of county building codes, including the erection of several structures at the track without proper permits. The county levied a $50,000 fine and a daily non-compliance fine of $750 that was to begin accruing this week.

Meanwhile, the Arizona State Land Department in December canceled the lease allowing Speedworld to operate on state trust land. Cancellation came after the track failed to pay its annual rent and comply with insurance requirements.

“Between the county and the state, yes, this has shut me down — we will be closed,” said Dan Matthews, owner of Speedworld. “I would say we will not last past June.”

Matthews and State Land Department officials declined to comment further, citing pending litigation. Matthews sued the county in August, arguing that it has no regulatory authority over state land or activities there. The next court hearing is scheduled for Feb.1.

A model-airplane airstrip and a paintball park already have closed at the Speedworld property, which is also used for off-road truck, motocross, and slot- and sports-car racing.

Matthews signed a State Land Department lease in 2004 allowing him to operate his racetrack on the 344-acre property. The lease agreement requires Speedworld to be in compliance with “all applicable federal, state, county and municipal laws, rules and regulations.” Failure to obtain or losing applicable governmental approval would constitute a breach of the lease, according to the agreement.

Matthews’ dispute with Maricopa County began in 2006 when he applied for a county permit to install electrical lines. County officials accused him of building beyond the limits of Speedworld’s original county special-use permit. He was required to file for a new permit. In 2009, the county opened a compliance-violation case against Speedworld.

Matthews was fined at a county zoning hearing earlier this month, and ordered to cease operations. The $750 daily fine applies until Speedworld ceases operations or gets a new special-use permit.

Since Matthews took over the Speedworld lease, he built additions and structures without permits, including a racetrack, an observation tower, an off-road racing expansion, a paintball fighter park and a bleacher structure for 5,000 to 7,000 spectators, according to the county zoning hearing officer’s report.

Matthews also did grading and paving work without an engineered drainage plan or permits, according to the report.

The potential closing of Speedworld has been a hot topic in the Valley’s racing community, several motocross racers said during open practice on a recent Sunday afternoon.

“I’ve been hearing it from everyone. Everyone’s pissed off it’s closing,” said Ryan McDanald, who has been riding at Speedworld three times a week for six years with his sister and his friends.

McDanald said Speedworld is his preferred track to ride his motorcycle because of the quality of dirt and lighting that allows users to ride safely at night.

With racetracks closing around the state, alternative locations are limited for motocross riders, said Jay McGuigan, who has been riding at Speedworld about twice a week with his 9-year-old son, who also races.

“We’d have to ride in the desert,” McGuigan said. “We’d have to ride in private property ... We’ll do it and we’ll pay the tickets.”

Surprise City Councilman Skip Hall said some state legislators and the Surprise Regional Chamber of Commerce met last week to discuss ways to keep Speedworld open.

Speedworld hosts several statewide races a year. Matthews said previously that the racetrack brings in about $1million a year and draws event visitors to Surprise and Wittmann.

Hotels and restaurants are worried about the revenue they would lose without the races, Hall said. Hotel representatives are working on an estimate to quantify the loss in revenue, he said.

“It’s going to have a significant impact on the city of Surprise,” Hall said.