Wednesday, June 30, 2010

Solorio Won't Block Fairgrounds Sale!

GOOD NEWS TONIGHT!
At just before 6:00 p.m. today Mona Shadia reported in the Daily Pilot that Assemblyman Jose Solorio has stated that he will not block the sale of the Orange County Fair and Event Center based on Mayor Allan Mansoor's "Rule of Law City" resolution. You can read her entire article HERE. As you know, there has been much speculation that the Latino caucus of the legislature would, in fact, block the passage of legislation required for the deal to go through.

SOLORIO DIDN'T SAY HE WOULD SUPPORT THE SALE, YET
Solorio did not state that he will support the sale, though. He hedged that bet, indicating that he will do what he feels is right for Orange County residents and the State of California.

VAN TRAN ALSO ON BOARD
Lame duck Assemblyman Van Tran, whose seat Mansoor is trying to acquire this November, is quoted in the article as having the opinion that his colleagues in the Assembly are concerned about the City's resolution, he does not believe they will oppose the sale of the fairgrounds because of it.

STILL MUCH WORK TO BE DONE

This is good news at a time when there certainly is a need for some. There's still a long row to hoe in this process, including finalizing the nuts and bolts of the agreement between the Orange County Fairgrounds Authority and Facilities Management West. The clock continues to tick as we await the legislation to be passed and signed by Governor Schwarzenegger so this deal can be completed.

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Daily Pilot "Comments" Are Back!

FINALLY!
Yahoo! The Daily Pilot has re-activated the "comment" feature in the online version. So, now we can get back to hollering back and forth at each other on that venue.

DELAY MAY HAVE BEEN COSTLY
Actually, the delay in activating the "comment" feature probably cost them a lot from a revenue standpoint - most online advertising is based on "hits" - the number of times a reader visits the site. Without the "comments" and the lively discussions that have been carried there in the past I'm sure the old hit counter slowed to a crawl.

RE-REGISTRATION REQUIRED
On new thing you'll find is the requirement to re-register before participating. Although they don't require a strip search and full body cavity investigation, they do ask questions some may find too intrusive. I guess we'll see as this feature gets up to speed.


SLOW POSTING FOR AWHILE
And, don't expect there to be a rapid turnaround on comments posted... the staff is still being trained on how to screen them - every comment will be screened BEFORE publication. This is very different than, for example, the OC Register, where every comment - even the most vile and egregious - and are not removed until someone complains. This makes for long, sometimes very unpleasant, comment threads which become difficult to follow when offending comments are deleted.

BRING IT!
So, sharpen your wit, think of a new screen name if you won't use your own name when posting, and get ready to rumble! See you there....

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Fair Deal Percolates & Other "Hairy" Issues

SANTANA SIGNS ON
As the Fairgrounds issue continues to percolate with no news today, over at the Voice of OC, editor-in-chief Norberto Santana, Jr., has signed on with his take on the meeting last week at which the Sale agreement with the State and the Memorandum of Understanding with Facilities Management West were both approved by the City Council. He played a little loosey-goosey with some of the numbers, but generally got it right. You can read his report HERE.

KOCE VIDEO CLIP
And, the Voice of OC also includes a link to a nearly 10 minute video clip from KOCE, their news partner, in which moderator Rick Reiff presents video interviews with some of the main players in this drama - Jim Righeimer, Katrina Foley and Sandra Genis - and discusses the Fairgrounds plan with Santana, Nick Berardino, head of the Orange County Employees Association and Karen Lugo, a Constitutional Lawyer. You can watch this very interesting video clip HERE.

THE LEGISLATIVE CLOCK TICKS...
So, we really don't have any good news about the deal. I do know that the legislature is just about due to take it's summer break and the deal cannot be consummated unless and until it passes the necessary bills to facilitate the sale. More when we know more...

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"THE MOUTH" IS SLIPPING
In the meantime, over at the CM Press, our old pal, The Mouth From Mesa North, continues to demonstrate signs of serious mental health issues. Apparently, as Costa Mesa's racist-laureate, he's decided to morph his pathetic blog into a aggregation and repository of incendiary racist articles and links. I mean, does he really think both of his Costa Mesa readers want to peruse the pages of Al Jazeera, for goodness sake?

FOLLICULAR FIXATION
And now the poor man seems to have developed a serious case of follicle envy. Yep, he clearly has a fixation on a full head of hair to the extent that he has decided to violate copyright laws using a protected image from my blog to illustrate the hair style he covets. I kinda want to help him out a little, I mean beyond him having that photo pasted to his mirror to admire each morning. Heck, we know he had flowing locks when he was in that awful movie, The Second Coming of Suzanne, for 19 seconds 35 years ago, as you can see here. I'm sure he could grow a nice mop of hair if he would just stop asking for that prison-style haircut when he sits down in the barber chair.

COULD BE WORSE...
I suppose it could be worse, though... he could have an obsession about what's IN my head instead of what's ON it, right? Only kidding... we all know - because he reminds us of it frequently - that he's a Mensa member and the smartest guy in town. Come to think of it, we've not seem much of him lately. In the past he was a regular infestation at most city meetings. Perhaps he's staying home to grow some hair! We wish him well - but not too well. We really don't want him to come back to the meetings to hawk his books again, now, do we?

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Tuesday, June 29, 2010

Barrett-Jackson A Success

AUCTION WEEK A ROUSING SUCCESS
So, from all accounts so far, the Barrett-Jackson event was a rousing success. No, I did not attend - too many other things on my plate over the past few days - but I did sneak a peek at the television coverage of the auction from time to time on Friday, Saturday and Sunday. Wow! There were some spectacular cars on the block. If, as has been speculated, the sales generated around $20 million, that could mean a healthy infusion of sales tax dollars for our city at a time when we really need it.

MICKADEIT'S TAKE ON IT
Register columnist Frank Mickadeit wrote an interesting column about the auction, HERE. Unfortunately, the headline writers created a minor stir with their interesting choice of lingo, which was later modified to it's current form. Seems the phrase "B-J" isn't universally recognized as a contraction for "Barrett-Jackson", but rather a contemporary coarse reference... I'll leave it to you to figure it out. It did generate lots of hits on the column, though.

TRACTOR BRINGS $25,000
One of the highlights of the auction was the tractor made available by the folks at Facilities Management West. That old John Deere drew a winning bid of $25,000 from, according to the Daily Pilot article HERE, a gent from Orange Park Acres named Matt Tachdjian. Tachdjian apparently owns a couple of Honda dealerships in southern California. As mentioned in my previous post, the entire proceeds will go to the Centennial Farm Foundation.

ROEDER AS "FARMER JOHN"?
I especially liked this photo of the tractor being driven by Costa Mesa City Manager Allan Roeder... can you envision Roeder in coveralls, plowing the south 40? Nah, neither can I.


FOLKS STILL ANGRY ABOUT THE SALE
The pending sale of the Fairgrounds to the City and subsequent land lease to Facilities Management West have more than a few folks unhappy. Of special interest may be a posting over at the Pacific Progressive blog, HERE.

PROCESS CONTINUES - HOPEFULLY
As I understand it, the City and FMW are still hammering out the final details and the State is proceeding with it's part of this process, including the legislation necessary to actually facilitate the sale. No more recent word from the Latino Caucus in the past couple days. We continue to hope that they will set aside their squabble with our lamebrain mayor, Allan Mansoor, and do what is right for the City, the County of Orange and the State - sign the legislation so the sale can move forward. We'll see...

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Friday, June 25, 2010

A Piece Of Our Heritage For Sale

TIME TO CHILL A LITTLE
It's time to throttle back on the rhetoric about the Fairgrounds sale just a little this weekend and enjoy what most of us hope will be the first of many annual visits by the Barrett-Jackson Automobile Auction to the Orange County Fair and Event Center.

AUCTION TIME IN COSTA MESA
Much hoopla has accompanied the launch of this auction week, which will be culminated over the weekend by the car auction.

WHAT A MACHINE!
In the spirit of community harmony and philanthropy, Facilities Management West has donated a pristine 1946 John Deere Tractor - one of only 2840 build during the war years of 1941-1947 - to the auction. According to Steve Davis, president of Barrett-Jackson Auction Company, "...this is one of the most beautifully restored John Deere tractors I've ever seen."

SLOW AND STEADY
This beautiful piece of our agricultural heritage will share the auction block with exotic cars capable of going 0-60 in less than 4 seconds. The tractor has a top speed of 15 miles per hour!

100% OF PROCEEDS TO CENTENNIAL FARM
According to Facilities Management West principal and Costa Mesa resident Richard Dick, 100% of the proceeds of the sale of this tractor will go to the Centennial Farm Foundation at the Orange County Fairgrounds, benefiting the children and programs at Centennial Farm, one of the lynch-pin features of the Fairgrounds.

TERRIFIC GIFT
According to Mack Ramsay, President of the Centennial Farm Foundation, "Centennial Farm and its connection with the people of Orange County is extremely important and dear to our hearts. We're grateful that Facilities Management West is providing this wonderful gift so the work of Centennial Farm can continue and remain a lasting part of our Orange County heritage."

BRING YOUR WALLET
The tractor is Lot # 617.2 and will be auctioned off between 12:30 and 1:30 p.m. on Sunday, June 27, 2010. For more information on the auction and schedule of events visit the Barrett-Jackson page HERE.

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Wednesday, June 23, 2010

Of Bars, Barbs and Boneheads

MORE INFO ON THE FAIRGROUNDS SALE
Well, the dust is beginning to settle after the late (early?) meeting of the Orange County Fairgrounds Authority Tuesday night - actually, 12:10 Wednesday morning - and some subsequent information makes this whole process even more fascinating.

MICKADEIT - "DEAL DONE IN A BAR"
For example, Orange County Register columnist Frank Mickadeit tells us in his column, HERE, that the deal was dead until Gary Monahan resurrected it on cocktail napkins at his gin mill late Friday night. His account of this event is very interesting.

KUDOS TO MONAHAN
Before going further I must commend Monahan for his role in salvaging the deal, both Friday evening and during a marathon session on Saturday. That, plus his matter-of-fact comments in the proceedings Tuesday night, probably kept it from going down in flames. He correctly pointed out, after much rancorous discussion, that we didn't really have a choice. Only by approving the deal with Facilities Management West would the City avoid having absolutely no influence on the future of the Fairgrounds. If the State, as it threatened, did put the property back on the market Wednesday it would likely be lost forever. And, as Monahan quietly alluded to, there was the chance that the State would simply lease the property, voiding the impact of Measure "C" and permitting an unlimited variety of uses.

THE LIST
Early in the discussion Monahan provided seven bullet points - a list of benefits to the city that this deal represents:
1 - Maintains control of the property's use.
2 - It receives a steady income from the property.
3 - We're not investing City tax dollars for the purchase of the property or for operations of the property.
4 - Unfettered ownership of the property when the lease terminates.
5 - Protects the community uses on the property as well as the annual fair.
6 - Benefits from protection from damages and liabilities.
7 - Has the opportunity to receive big ground lease payments once the state loan is repaid.

SPEAKERS STILL NOT HAPPY
Clearly, many speakers Tuesday night, among them former Mayor Sandra Genis, were unhappy - that's no surprise. Each of them had a passionate interest in keeping the Fairgrounds as-is. I understand their angst. However, this deal is much, much better than they could have expected under almost any other scenario. I hope, as time passes, they will begin to see that more clearly.

NO TRANSPARENCY
The trail of speakers on this issue during public comments made it clear that few were happy with the deal as they understood it. I phrase it that way because there was much confusion about just which version of the deal we were addressing at this point. Many of them thought this was a bad deal, that lacked transparency as it progressed and without any kind of guarantees for transparency in the future. They're not wrong...

PAINFUL ETCHING
Burned in my brain is the exchange Tuesday night between OCFA Chairman Allan Mansoor and of the Facilities Management West team. I think a peek at the streaming video of the proceedings, HERE, will help you understand just how that went. Drag the timer bar over to 39:50 if you're in a hurry. That's the point where Mansoor begins his inquisition of Facilities Management West partner, Richard Dick, who was speaking in the absence of their normal negotiator, Guy Lemmon. Mansoor posed to Dick an issue that, in Mansoor's words, was "a deal breaker"... he told Dick that "it's my understanding some of the attorneys from Facilities Management West were, um, and this is what I've been told, I was not there, were considerably less than respectful to some of our city staff." He went on to express more concern about the alleged disrespectful treatment of the Costa Mesa team and stated, "that troubles me more than some of these details that are in this written agreement." waving the papers in the air. Oh, really, Allan? Is that right? You care more about some hurt feelings than a deal worth hundreds of millions of dollars to the city with a life span of more than a half-century? Are you really that obtuse? Guess so, because he persisted.

PRODUCT SPONSORSHIP
Mansoor then went on to question Dick about the product sponsorship segment of the MOU, observing that there is a cap on the amount the OCFA would receive. Of course, this issue had been hammered out over long, long meetings by teams of negotiators. It sure looked like Mansoor was attempting to modify the agreement that had already been approved by the City team and Facilities Management West. Dick attempted to give a little history and pointed out that the issue Mansoor was raising was just part of the approximately $300 million in net income to the city under the deal. Mansoor persisted, asking if there was a reason it couldn't be a percentage. Dick responded by saying, "Excuse me, but I didn't think we were coming here this evening to negotiate." Mansoor persisted and Dick said, "I didn't think we were in a negotiating position on rent."

TAG TEAM MATCH - FAIT/DICK VS. MANSOOR
This is where it got to be fun. At that point, around 46:45 on the counter, Kenneth Fait, head honcho of Facilities Management West, came to the podium - apparently tired of seeing his guy getting pilloried by Mansoor - and tried to calm the issue down. He apologized for any incivility by his team. He emphasized that "Sir, we're going to be in it forever, and how that works out - we better get along." Mansoor persisted, pointing out to Fait the difference between "hard, aggressive negotiating and unprofessional actions". In response to that Fait said, "I apologize, but we've offered you the max rent and I'm not going to offer you a penny more." He pointed out that it represents about $371 million "coming down the pike here." Mansoor persisted, indicating that he just wanted to know why there's a cap. Fait explained that, "If it's just money you want, we've offered you the max that we're going to offer." Mansoor said, "I appreciate that, but it really doesn't answer my question, simply a question of why there's a cap." Before Mansoor could finish that statement Fait said, "Because I want all the profit beyond that! It's very simple - I want all the money beyond that. It's really simple - that's mine! I've offered you what you're gonna get. That's a good working relationship. You know, I'm a private entrepreneur, I hope to make more than the money I'm paying you." He and Dick then left the podium and took a seat in the audience.

WAS THE DEAL BLOWN?
At that moment many of us watching the proceedings thought that Mansoor, in his ignorant, clumsy way, had blown the deal that had taken hundreds of hours of negotiation to bring to this point. With his apparent complete lack of grasp of business dealings and negotiations - probably due to spending 16 years in the black and white world of a jailer - he was going to destroy all the efforts of our negotiating team. In a headline in my previous post I asked, "Is he that stupid?" Here was your answer - Yes, he is.

CALMER HEADS PREVAILED
Fortunately, calmer heads prevailed. Fait and his team didn't do what some of us might have done - tell Mansoor to take the deal and shove it where the sun don't shine - and, after long and contentious discussions, the deal was finally approved by the OCFA Board, 4-1. Katrina Foley, to the surprise of a few observers, voted "No" on the deal.

WOULD THEY TRY THIS AGAIN?
I doubt if any of the participants would choose to try to put together a deal of this complexity in such a short time if the State had not held a gun to our heads all the way. And yet, they managed to do it. Good for them.


LATINO CAUCUS LURKING?

Now the details must be hammered out and the State must do it's part - that's no slam dunk, either. Our "amigos" in the Latino caucus are lurking in the shadows, waiting for an opportunity to stick a knife in the jugular of this deal by not passing the required legislation. We can only hope that they won't hold the political posturing of our mayor with his "Rule of Law City" resolution against the entire city and block the sale for spite. We hope they are bigger than that. Time will tell.

NINETY DAYS OF PINS AND NEEDLES
So, we now move forward toward a probable September 30th closing date for the escrow with fingers tightly crossed that nothing else will occur to quash the sale.




MANSOOR ILL-EQUIPPED AND UNWORTHY

One thing became crystal clear Tuesday night - Allan Mansoor has demonstrated, one more time, just how ill-equipped he is for higher office. While watching him Tuesday night it was obvious why he was not one of the members of the negotiating team. His limited intellect, lack of formal education and narrow life experiences have left him unprepared for a role in this kind of activity. No matter how hard he prays, no amount of divine intervention is going to change that. As we approach the November elections I'll remind you of just what a short-sighted, ignorant, political opportunist he is and how unworthy he is for your consideration for the Assembly seat he's seeking. History shows us that he will provide us with plenty of opportunities to point out his shortcomings between now and November.

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Budget & Fairgrounds Deals Approved!

BUDGET DISCUSSIONS ACRIMONIOUS
The first half of Tuesday night's council meeting went about as I expected. There was much acrimonious debate among some of the council members - Katrina Foley and Eric Bever were the main combatants - on how to vote on budget issues.

FOLEY NIBBLED AWAY
Foley tried, with only minimal success, to salvage a few dollars here and there in a budget with a $16 million dollar shortfall. Eventually the council voted 4-1, with Foley voting no, to approve the budget presented to them with a few modifications.

TOT ON THE NOVEMBER BALLOT
They also voted to place an increase in the Transient Occupancy Tax (TOT) on the November ballot. City Manager Allan Roeder suggested that a minimum 3% increase be considered. Instead, at Councilman Gary Monahan's suggestion, they approved placing a 2% increase on the ballot. At that point Costa Mesa will still be well below the county median, with virtually no realistic opportunity to go back after more in the near future. It's just another short-sighted move by the council - just like the many others in the past that have contributed to the giant fiscal hole we find ourselves in today.

OTHER REVENUE SOURCES TO BE EXAMINED
The council also directed the staff to return with specific proposals for increases in a few other areas.

FUND BALANCE TAPPED AGAIN
The budget as approved remains well short of being balanced so it forces the utilization of the diminished fund balance to make the numbers work. You may recall that, over the past three years, we've drawn down those reserves by $35 million! The exact amount necessary to be used is unclear... more to follow when I get a number.

FAIRGROUNDS SALE UP NEXT
The second half of the evening was dedicated to the meeting of the Orange County Fairgrounds Authority (OCFA), the joint powers authority formed by the City for the express purpose of purchasing the Fairgrounds from the State. So, the council members figuratively slipped into their Farmer John coveralls and became "authority members".

ROEDER - "MUST HAVE A DECISION TONIGHT"
Roeder, who functions as the Executive Director of this organization, brought the full council (authority board) up to speed on the timetable. He told them and the audience that a vote MUST be taken tonight on the purchase agreement and the memorandum of understanding with Facilities Management West because the State is prepared to place the Fairgrounds back on the block today, Wednesday, if the authority doesn't get a deal done tonight. He told us that the City had missed two recent deadlines imposed by the State last week and that we were at the end of our rope.

MOVED TO CLOSED SESSION
After re-affirming the bylaws, they went into a closed session to be briefed by the negotiators. That closed session lasted 90 minutes.

BARLOW GAVE OVERVIEW OF DOCUMENTS
Once the meeting was re-convened City Attorney Kim Barlow gave a brief overview of both documents - the purchase agreement and MOU.


MANSOOR STEPPED IN IT
Then my jaw dropped as a haggard-looking Allan Mansoor, as chair of the authority, proceeded to chastise members of the Facilities Management West team for what "he had been told" was disrespectful behavior on the part of lawyers from FMW during negotiations! Funny, I thought those negotiations were confidential! Who told him? When? Regardless, he flustered Richard Dick - who was a stand-in spokesman for FMW - with questions about the deal that had been negotiated which so angered Kenneth Fait, the top dog at FMW, that he rushed to the podium and, in a very heated comment stream, told Mansoor that the deal we have is the best we're going to get. He wasn't going to offer a single penny more! I thought for sure Mansoor had blown this deal at that point.

MOST SPEAKERS DECRIED LACK OF TRANSPARENCY
Speaker after speaker stood and expressed consternation with what most described as a lack of transparency. The expressed concern about the deal itself and the fact that the City seemed to have given up control.


COSTA MESA DID THE "IMPOSSIBLE"

The pace of this process will almost certainly be the subject of a book one day. I doubt that anyone north of Bakersfield thought Costa Mesa could pull this off with the land mines placed in front of it. And still, the process continued at breakneck speed.

FINAL APPROVAL WEDNESDAY MORNING
At the end of the day, which turned out to be 12:10 a.m. Wednesday morning, the Orange County Fairgrounds Authority board voted unanimously to approve the sale agreement with the State and then, after much discussion, voted 4-1 to approve the MOU with Facilities Management West. Foley voted no, and explained her concerns at length before the vote was made. She said what others had said earlier in the evening - that this 55 year agreement needed to be like a marriage, but it just didn't feel right.

DEAL DONE
So, the deal is done. In a few hours the State will have in front of them the necessary paperwork to officially launch the escrow and the clock ticks at their end now.

LATINO CAUCUS THREAT PENDING
The elephant in the room at this point is the threat by the Latino caucus that, because of Mayor Mansoor's "Rule of Law City" resolution, they will block the legislation required for this deal to be finalized. I guess we'll find out about that soon enough.


NOT MUCH JOY TONIGHT

At the end of the day, in my opinion, both major issues addressed by the city council tonight - the budget and the Fairgrounds - ended up with not very many people leaving the auditorium happy. I suspect the Facilities Management West folks were pleased, but not happy. This will be a night to remember in the history of our city.

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Tuesday, June 22, 2010

Fairgrounds Deals Outlined

LATE ADDITION OF CRITICAL DOCUMENTS
With only a few hours until the meeting this evening the City released a revised agenda report for the Orange County Fairgrounds Authority (OCFA) meeting. In addition to the presentation of the bylaws of the organization, the most recent revision also includes two critical items - the Purchase and Sale Agreement with the State of California and the Proposed Memorandum of Understanding (MOU) with Facilities Management West (FMW) for the ground lease and operating agreement.

PLENTY OF LEGAL JARGON
The Purchase and Sales Agreement, all 75 pages of it, is replete with all the legal jargon you would expect for an agreement of this type. I'm not going to begin to try to decipher it for you - among my many shortcomings is a lack of legal training - but there are some pearls of information to be found on those pages.

PURCHASE PRICE
The purchase price, as was the case with the previous set of partners, is $96 million, for which the State will carry a note.

DEPOSIT
At close of escrow the Buyer (the OCFA) will pay $19.2 million.

SEPARATE ESCROW
Facilities Management West must deposit $1 million in an escrow account controlled by them within three days following the execution of the agreement. That will be applied to the amount, above, paid at close of escrow.

CLOSING DATE
The closing date is set at September 30, 2010, unless another date is mutually agreed upon.

REQUIRED LEGISLATION
As part of it's agreement the State legislature must have enacted legislation authorizing the sale of the property which also addresses the dissolution of the 32nd and/or 32A District Agricultural Associations and assigning the right to hold the Orange County Fair to the OCFA, which must be signed by the governor.

EMPLOYEES
The state must make arrangement for the existing employees of the Fairgrounds. The OCFA assumes no responsibility for hiring the State's employees.

NO COMPETING FAIR
As long as there is a fair conducted at this site the State may not authorize another competing event in the County of Orange.

MOU BETWEEN OCFA AND FMW
The Memorandum of Understanding between the OCFA and Facilities Management West includes the terms of the ground lease and operation parameters for the Fairgrounds.

TERM
The term is 55 years, with no options to extend.

PROFITS
The OCFA will receive a minimum of $750,000 per year beyond the amount necessary to service the debt for the first 5 years. Years 6-10 that increases to $1.5 million; years 11-20 it goes to $2.5 million; years 21-30, $2.85 million; years 31-55, $3.2 million.

PLUS A PERCENTAGE
In addition, OCFA shall be paid a portion of the revenue generated, 5%, with an annual maximum as follows: Years 1-5, $50,000; 6-20, $75,000; 21-35, $100,000 and 36-55, $200,000.

MANDATORY OPERATIONS
The following operations must be maintained by FMW: Annual Fair (minimum 24 days in July/August); Centennial Farm; Youth Expo; Equestrian use; Civic Center reciprocal uses, parking and such; minimum 18 month transition to maintain existing agreements for the marketplace/swap meet operations. FMW may terminate those agreements following the 18 month period.

CAPITAL IMPROVEMENTS
FMW will make capital improvements of $6-8 million over the next 5 years.

COMPLETE DOCUMENTS AVAILABLE FOR READING
If you're interested, you can read the entire text of both documents at the city website, HERE.

LONG NIGHT AHEAD
This is going to be a very interesting, very long evening. This subject will be considered following the budget discussions tonight. Hope you have some No-Doze or a large pot of coffee.

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