3 Fairgrounds Bidders Identified - So Far

COSTA MESA FAIRGROUNDS DEAL - R.I.P
While nobody has officially signed the death certificate on the deal between the City of Costa Mesa and the State of California on the purchase of the Orange County Fair and Event Center, it certainly appears that the grave has been dug to a sufficient depth and that all we're waiting for is for the body to be rolled in, covered up and the epitaph carved on the headstone. Might I suggest, "Here lies a deal, doomed from the start. Politics and greed drove a stake through it's heart." The State has a budget - without a rider authorizing the sale - and the legislature is now in recess - without signing the enabling legislation. I guess we're all done but the official pronouncement. Who knows - that may come at the City Council meeting scheduled for tomorrow.

FACILITIES MANAGEMENT WEST
In the meantime, as previously mentioned, Facilities Management West has submitted a bid for the Orange County Fair and Event Center under the August Request for Proposals issued by the State Department of General Services in August.

AMERICAN FAIRS AND FESTIVALS IS SECOND BIDDER
The Orange County Register, in it's coverage recently, announced that American Fairs and Festivals - a previous bidder and whose team includes Jeff Teller of the Orange County MarketPlace - has also submitted a bid for the property. I spent some time on the telephone with Teller today, who confirmed that he and the American Fairs and Festivals team are, indeed, bidders on the property.

A THIRD BIDDER IDENTIFIED
Also submitting a separate bid is Advanced Real Estate Services of Lake Forest, who was previously partnered-up with American Fairs and Festivals in it's negotiations with the City of Costa Mesa this past spring in an attempt to put together a package for the acquisition and lease of the Fairgrounds from The State. That consortium was shoved aside in favor of Facilities Management West at the last minute.

EXCEEDED THE MINIMUM
According to Richard Julian, President of Advanced Real Estate Services, they have submitted a bid which slightly exceeded the minimum amount required by the state - $96 million - and are looking forward November 14th - the date the DGS has indicated will be the time when the successful bidder will be announced.

DGS - ANNOUNCEMENT MAY BE DELAYED
In a conversation with Eric Lamoreaux of the DGS today he indicated that there MAY NOT be an announcement of the successful bidder on that date - the DGS may wait until they have actually negotiated with their choice of bidders before making an announcement. I have no idea why we should expect transparency in this deal now, since there has been very little throughout this process.

EQUESTRIAN-ORIENTED
During my conversation with Mr. Julian today we discussed other projects they've developed or have in the works. One of them is a development in San Juan Capistrano called The Meadows, which will include single family homes, condos and apartments AND a world-class EQUESTRIAN CENTER. I mention this for you horse folks out there to contemplate. It was clear to me during our conversation that Mr. Julian and his team understand the intrinsic value of equestrian facilities... something to chew on.

HOPING FOR AN EARLY ANNOUNCEMENT
So, the beat goes on. We have at least three separate players in this game who have previously expressed interest and have previously submitted bids. Let's hope the DGS will be able to make a decision and an announcement at the earliest possible date. The residents of Costa Mesa, the elected leadership of our city and the hard-working staff all deserve to have an idea of the future of the Fairgrounds soon.

Fairgrounds Deadline Passed - Now What?

NO BILL PASSED TODAY
Today, August 31, 2010, was the deadline for the legislation necessary to complete the sale of the Orange County Fair and Event Center to be passed. That did not happen.

BUDGET NOW THE ONLY HOPE
Now the only chance that is left to the advocates of the sale of the Fairgrounds to the City of Costa Mesa via it's Joint Powers Authority, the Orange County Fairgrounds Authority, is for a bill to either be passed with a budget bill or as a trailer to such bill. Neither seems likely at this time. You can read the Orange County Register story on this issue HERE.

TIRELESS WORKERS
As a Costa Mesa resident I've ridden this issue like a roller coaster, through the infrequent highs and the all-too-frequent lows. I've seen the city negotiators, led by City Manager Allan Roeder and City Attorney Kimberly Hall Barlow, work tirelessly to meet the unreasonable goals established by the state.

CHANGING PARTNERS, SUFFERING ABUSE
I've seen them have to change horses in the middle of the stream, abandoning American Fairs and Festivals as a potential partner and leap aboard Facilities Management West, hoping to cobble together a deal that would save the Fairgrounds. Based on many reports, this was a painful process, with many acrimonious encounters between the negotiators. We got a little taste of that when Mayor Allan Mansoor - not one part of the negotiating team - was read the riot act by FMW CEO Ken Fait during a City Council meeting. That outburst raised many an eyebrow among observers and may have shaken confidence in the process. It made FMW seem like bullies.

FAIRGROUNDS BACK ON THE BLOCK
If the legislature does not pass a bill to facilitate the current sale, then the State Department of General Services promises to immediately put the Fairgrounds back on the market, with a minimum bid of $96 million - the amount that the City has bid. In fact, perhaps in anticipation of the sale failing, they've already issued the Request for Proposals. This time there will be no auction, though. Nope, the bids will be opened on September 30th and the State hopes to consummate a deal by year's end.

WHAT ABOUT MEASURE "C"
There is also apprehension that the State may try to exempt a potential buyer from local zoning and other regulations - specifically Measure C, which was passed in June to lock in the current uses of the Fairgrounds. If that happens, well, the image I chose says it all.

WHAT ABOUT THE FAIRGROUNDS NOW?
Speculation runs rampant about the future of that 150 acres of prime urban real estate. There are more than a few that think the 32nd District Agricultural Association - the appointed body charged with operating the Fairgrounds and running the Fair - may jump ship to the Great Park in Irvine if the current deal falls through. That venue, which is bleeding money, needs a reason for existing since the housing market is prohibiting the nearly-bankrupt Lennar Corporation from doing its planned development. It would be possible to carve out a couple hundred acres at that site for the Fair and ancillary events fairly easily.

WAITING...
So, we continue to sit and hope. We hope the folks in Sacramento find a way to get past whatever issues are keeping them from approving legislation. With each passing day the chances get less and less likely...

American Fairs and Festivals Appeal Rejected

COSTA MESA REJECTS AFF APPEAL REQUEST
Late this afternoon Costa Mesa City Attorney Kimberly Hall Barlow replied to the letter sent last week from the law firm Adorno Yoss Alvarado & Smith on behalf of it's client, American Fairs and Festivals requesting an appeal of the City Council's decision to reject AFF as a partner in the purchase of the Orange County Fair and Event Center and selecting Facilities Management West instead.

***

Here is the text of Barlow's letter to Raul A. Salinas, Esq. at that law firm:

August 9, 2010

Raul A. Salinas, Esq.
Adorno Yoss Alvarado & Smith
633 W. Fifth Street, Suite 1100
Los Angeles, California 90071

Re: American Fairs and Festivals, Inc. "Appeal"

Dear Mr. Salinas:

I write in response to your letter dated August 4, 2010 addressed to Costa Mesa City Manager Allan Roeder. As I am sure you realize, the City's decision to contract with Facilities Management West for a ground lease of the Orange County Fairgrounds is a legislative act. The Council was and is free to consider whatever factors it chooses in determining who should be the ground lessor of the Fairgrounds. The competitive bidding requirement you refer to in your letter does not apply to the lease of the Property.

While you may feel that the City's objectives have not been met by the MOU entered into between the Joint Powers Authority and Facilities Management West, the Council/JPA Board obviously disagree with your assessment. There is no administrative appeal process currently available to your client with respect to the Council's decision. The MOU was entered into on June `8th. Any request for rehearing or reconsideration would have been required to be filed within seven days of the date the MOU was approved. See Costa Mesa Municipal Code Section 2-305. This, even if there was a basis for your client's "appeal" of the decision, your request was not timely. Thus, no rehearing request will be agendized for discussion.

Please do not hesitate to contact me should have any questions.

Very truly yours,



Kimberly Hall Barlow
Costa Mesa City Attorney

***

SO THERE!
So there you have it. It appears to this layman that the city has responded in the spirit of the original letter with a short and sweet response. We have effectively said, "Too Late, Sucker!"



WHAT'S NEXT? A LAWSUIT?
Now we wait to see what happens next. Will there be a lawsuit on this issue? Will this nuisance create a problem in Sacramento with the legislators that will be required to pass a bill to permit the sale go forward? Will they get it done before August 27th, when they all bail out and head home to campaign for their seats?

WILL ARNOLD DECIDE ENOUGH IS ENOUGH?
Further, will our lame duck Governor decide he's had enough of this hassle and tell the Fair Board to proceed with their revenue sharing scheme and pull the Fairgrounds off the table? So many issues, so little time.



MORE NEWS AT TOMORROW'S MEETING?
Perhaps we'll receive some enlightenment tomorrow, Tuesday, at the meeting of the Orange County Fairgrounds Authority/City Council at 4:30 in City Council Chambers. The meeting will be televised live on Costa Mesa TV (Channel 24 on Time Warner Cable and 99 on ATT UVerse). It will also be live on streaming video on the City web site.

More Fairgrounds Fun, Legal Style

AMERICAN FAIRS AND FESTIVALS HIRES A LAWYER
Late Sunday night an interesting item floated my way in the form of a copy of a letter to Costa Mesa City Manager Allan Roeder, ostensibly from a Los Angeles law firm, Adorno Yoss Alvarado & Smith, representing American Fairs and Festivals, "appealing" the process by which American Fairs and Festivals was rejected as a partner in the Fairgrounds purchase and replaced by Facilities Management West.

COUNCIL MEETS TUESDAY
Since the City Council meets as the Orange County Fairgrounds Authority on Tuesday at 4:30, it will be very interesting to see if this letter gets any mention.

A STALL TO KILL SALE
To me, it seems unlikely that this letter will result in American Fairs and Festivals being re-instated as a bidder on this project. One could assume that this is simply a stalling tactic, designed to create unease about the current deal in Sacramento which might result in killing it. That, after all, appears to be the main objective of the most strident speakers on this issue and, of course, the current vendors and management of the Fairgrounds.

VERN NELSON STRIKES AGAIN
Our old pal, Vern Nelson, has already posted an entry about this letter on the Orange Juice Blog, including the entire text of the letter, which you can read HERE.

The intrigue never stops!

Fairground Quagmire

TARDY AND STILL TICKED-OFF!
I sat here late last night, knowing I needed to write about the Fairgrounds drama following the Fair Board meeting yesterday and the hasty Sacramento trip by City Manager Allan Roeder and Councilwoman Katrina Foley at the same time. I knew I owed you some kind of observation based on all the turmoil that is swirling around this issue. But, every time I began to type I found myself getting angry, frustrated and plain old depressed. So, I thought I'd get a good night's sleep and start today. Didn't work - I'm still angry, frustrated and depressed!

PADILLA ANGRY - VOTES "NO"
I was unable to attend the Fair Board meeting yesterday due to a prior commitment, but I'm told by reliable sources, and local media coverage, that the Board voted nearly unanimously to forward the profit sharing proposal to Sacramento for it's consideration. Member David Padilla voted no and, based on reports from the front, was quite angry with the whole situation. Rumors have it that he and other Board members had not even seen the document before being asked to ratify it.

BAGLEY-KEENE VIOLATION?
As
you will recall from my previous entry, Chair Kristina Dodge penned a letter to the Governor dated 7/31/10 that was a transmittal document for the proposal. My conversation with Steve Beazley, CEO of the Fairgrounds, on Saturday led me to believe that the proposal was already in Governor Scharzenegger's hands on that date - more than 48 hours BEFORE the Board had even seen it! Some have speculated that this was a clear violation of the Bagley-Keene Open Meeting Law.

BEHIND CLOSED DOORS
This kind of stealth governance has marked the Fair Board's role in the whole process for more than a year. From the time they unleashed Dick Ackerman to gin up support in Sacramento for a bill to sell the Fairgrounds last year right on through the events yesterday, they have been less than forthcoming. "Transparency" is a word with which they have no familiarity, it seems.

STILL NO WORD FROM BEAZLEY
Beazley promised to give me a call yesterday following the meeting so he could answer any questions I might have. Instead, he bailed out right after the meeting and has still not returned my repeated messages to him.

FOLEY AND ROEDER TO SACTO - AGAIN
In the meantime, Roeder and Foley were apparently summoned to Sacramento with short notice and no word is yet forthcoming from either of them about the reason and any results of the trip. A Press Release is promised today sometime. I'll report on that when I see it.

SOURCE: "SOLORIO STILL ON BOARD"
One source, who refused attribution, but is in a position to know, tells me that Assemblyman Jose Solorio is still supporting the current deal, is satisfied that Facilities Management West can perform and will have a draft of his bill available for circulation soon. He apparently is concerned that the budget gridlock may delay passage of this bill, to maybe as late as November! Every day that passes now without a signed and sealed deal delays lining up contracts for events at the Fairgrounds next year. It's my understanding that, based on previous direction from the Department of General Services, NO contracts may be authorized past the end of October until a deal is done.

MESSAGES FLYING
It will come as no surprise that many of the interested parties and stakeholders in the Fairgrounds have been melting the wires with emails, peppering their Facebook walls with comments and writing commentaries in local media and on blogs.

CROONER VERN'S TIRADE
For example, yesterday Vern Nelson over at the Orange Juice Blog, wrote the third of his essays on the current Fairgrounds deal between the City of Costa Mesa and Facilities Management West. Yesterday's presentation is a scathing indictment of the process and the deal. You can read it HERE. Give yourself plenty of time.


VENEZIA'S VENOM
Former Daily Pilot columnist and current Orange County Register columnist Barbara Venezia has written two highly critical essays recently, which you can read HERE and HERE. The last one, dated yesterday, has the provocative title, "OC Fair Board like killer in a bad horror flick". Her take on this seems to be pretty darn valid.

WHAT HAPPENED TO AMERICAN FAIRS AND FESTIVALS?
Other activists have flooded the social media with links to, for example, the text of the American Fairs and Festivals proposal for a partnership with the City of Costa Mesa for the purchase and operation of the Fairgrounds that, for an unexplained and curious reason, was abruptly rejected and Facilities Management West was invited to the table as a last-minute replacement. You can read that long pdf. file HERE. Some have speculated that nearly $8,000 in contributions to Mayor Allan Mansoor's Assembly campaign by individuals and organizations affiliated with Facilities Management West may have had something to do with that, but I seriously doubt it. Mansoor was not part of the negotiating team and, even if he had been, although he's not the sharpest knife in the drawer, he's not that stupid. However, many inquiring minds want to know what happened with that deal, but nobody's talking. Supposedly, all those contributions have been returned.

A DISASTER FROM THE START
This whole Fairgrounds Sale deal has been a disaster from the very beginning, with the intrigue surrounding the Fair Board's creation of a foundation to purchase the property, Dick Ackerman's role in this whole thing, the haste with which the State has required the City of Costa Mesa to cobble together an offer that they MIGHT accept and the various factions attempting to "blow up" the deal - including threats by Costa Mesa Planning Commission Chairman and candidate for City Council, Jim Righeimer, to do just that if not given a seat at the table.

COSTA MESA NOT WITHOUT FAULT
The City of Costa Mesa is not without fault in this process. For an organization that has historically conducted the business of the city with candor and openness, this has been an unexpected and unpleasant aberration. I suspect the pace with which they had to put together a deal due to the unrealistic and unreasonable deadlines imposed by The State has caused our elected leaders and the staff to give public awareness short shrift. I imagine some of them must have felt like they were in an old Keystone Kops movie at times. Yeah, I know I'm dating myself - so be it.

WILL WE BE UPDATED TONIGHT?
Tonight there will be a City Council meeting, but there is no agenda item in either the open or closed session that deal with the Fairgrounds. We can only hope that Foley and/or Roeder will take a few minutes to let the public know what that dash to Sacramento was all about, and give us an update on the status of the Fairgrounds deal.

Trip Answers - Questions Remain

PRESS RELEASE ON SACRAMENTO TRIP
Late this morning the City issued the following Press Release dealing with the trip to Sacramento by City representatives, City Manager Allan Roeder, council members Katrina Foley and Gary Monahan and Guy Lemmon, representative of Facilities Management West, the exclusive negotiating partner now involved with the City for the purchase and operation of the Fairgrounds:

WHAT'S THE NEW TIME LINE?
Unanswered by this Press Release is any indication from the State as to what time line the City is on in this process. Specifically, what still needs to be done and by when? Is the State continuing to expect our negotiators to continue to run a marathon at a 100 yard dash pace?

WHAT ARE THE TERMS?
Also remaining unanswered are questions about the specific terms we are talking about with Facilities Management West. With the previous vendor, American Fairs and Festivals, we were told specific on the terms. I've heard a rumor that the deal with Facilities Management West includes a 55 year term, as opposed to the 40 year term with the previous group.

NERVOUS STAKEHOLDERS
Based on comments I've received since the announcement of the collaboration with Facilities Management West, the natives are restless out there. Many of the stakeholders are apprehensive about their future at a Fairgrounds managed by this new group.






APPREHENSION ABOUT "RULE OF LAW CITY" RESOLUTION
Also causing some apprehension is Mayor Allan Mansoor's recent resolution declaring Costa Mesa a "Rule of Law City", because some folks think that may not set very well with a Democrat-dominated legislature - which will be required to pass legislation to facilitate the purchase of the Fairgrounds. How pathetically ironic it would be for Costa Mesa to go to all this trouble, spend all this time when the budget and other important issues should be dealt with, only to have Mansoor's personal political agenda cause us to lose our bid for the Fairgrounds.

MICKADEIT ON AMERICAN FAIRS AND FESTIVALS
In case you missed it this morning, you can read Orange County Register columnist Frank Mickadeit's view on what happened with the American Fairs and Festivals venture HERE.


STAY TUNED...
I'll post more information as I receive it.

Are Fair Negotiations Breaking Down?

"WHAT THE HECK JUST HAPPENED HERE?!
That's what one speaker asked the City Council during public comments tonight. She was frustrated and angry about being blindsided by the report from the closed session that a major change has occurred in the Fairgrounds negotiations - Facilities Management West, the second bidder, was included in the mix and the City negotiating team was charged to negotiate with them as well as the previously exclusive bidder, the American Fairs and Festivals partnership.

IT'S A NEW BALL GAME
According to City Attorney Kimberly Hall Barlow, the council voted in closed session 4-1 (Eric Bever voting "No") to authorize the negotiating team to enter "exclusive negotiations with either American Fairs and Festivals or Facilities Management West". My head spins....

SAW IT COMING
I must confess that I saw this coming when, during the two minute preamble to the closed session at approximately 5:15 - when no one else was in the auditorium - City Manager Allan Roeder asked the three council members - Allan Mansoor, Wendy Leece and Eric Bever - for a unanimous vote to change the agenda for the study session and add Facilities Management West as a negotiating party. Apparently Katrina Foley and Gary Monahan were still in negotiations!

NEGOTIATIONS IN TROUBLE
It's obvious that the deal with American Fairs and Festivals is in trouble. Roeder explained during council member comments that, even though negotiations have been going on practically around the clock, recent events (meaning late this afternoon) required them to broaden the scope of negotiations to include Facilities Management West.

HOW WILL THEY DO IT NOW?
Since the negotiating team will board a plane to Sacramento before dawn on Thursday to present our proposal to the State, I have no idea how they will manage to finalize a deal with the approximately 30 hours they will have from the end of the council meeting until they leave. I've seen Roeder pull rabbits out of hats in the past, but this just doesn't seem possible now.

COUNCIL FORMS JOINT POWERS AUTHORITY
Retaining hope that the process will, somehow, be successful, the council - wearing both hats as the council and the public finance authority - voted twice to create the Joint Powers Authority. Lamebrain buffoon, Bever, voted "No" in both cases.

A CLOUD OF GLOOM DESCENDS...
I can tell you that I came away from this meeting with much apprehension about the Fairgrounds deal. Adding this new element at, literally, the last minute in the negotiations seems to practically guarantee our plan will fail. Couple that with Bever's persistent negative votes and Mayor Mansoor's on-going expression of concern for the process, I just can't shake the feeling of doom.

COSTA MESA - A "RULE OF LAW" CITY
At the end of the meeting, to no one's surprise, Mansoor's resolution to declare Costa Mesa a "Rule of Law" city passed 4-0 - Foley had long since departed from the chambers. As former and future council candidate Chris McEvoy said at the speaker's podium, this is just pure political posturing on Mansoor's part, making sure he gets free press - he pointed to the media present. McEvoy couldn't be more correct. And, sadly, this is just the beginning if you believe Mansoor's words quoted in an early edition of the Orange County Register as reported in my earlier post.

RIDING BIGOTRY TO VICTORY
Remember the turmoil and legal difficulties of 2006? Get ready - it's going to happen again this summer as Mansoor attempts to ride the backs of the Latino population of our city to yet another election victory. Without the brown faces in our city he would have no campaign platform at all.

Council Picks American Fairs & Festivals!

AMERICAN FAIRS & FESTIVALS RANKED #1
At their special council meeting this afternoon the members of the Costa Mesa City Council decided to team up with the partnership of American Fairs and Festivals/Advanced Real Estate Services over Facilities Management West as the Number 1 ranked proposer as they move forward in their quest to acquire the Orange County Fair and Events Center from the State of California.

NEGOTIATIONS MOVE FORWARD
With that decision made, they will now continue to burn the midnight oil to negotiate with American Fairs to see if a satisfactory agreement can be reached in time to present the City's proposal to the State by the 20th. If those negotiations fail they will turn to Facilities Management West.

MEETING BEGAN LATE
The open session of the meeting began a half-hour late, at 4:30, and the next half-hour was spent hearing public comments. Of the eleven speakers, all but two spoke in favor of American Fairs and Festivals. Guy Lemmon, President of Facilities Management West spoke on behalf of his offer. During his presentation - extended beyond three minutes by council vote - he mentioned that an element of Comcast-Spectacor, the organization they hope to use to help manage the Fairgrounds if they were the successful bidder, is Ovations Fanfare, which has been providing food and beverage services at the Fairgrounds since 1995.

SITE WORTH $150 MILLION?
The other comment was by a gentleman named Ron Granados, representing his company, Granados Partners, which he described as a bunch of ex-Disney guys. He encouraged the council to tell the State they couldn't come up with an offer in the time presented. It was clear that he wanted a shot at buying the property himself. He said it was worth $150 million and would be a nice place for such things as a Vatican Library, a water park, hotels, a permanent Cirque du Soleil and one item that I'm sure caught the attention of a couple council members - a Latino Hall of Fame. Talk about the kiss of death! Following public comments they moved to a closed session meeting.

ROEDER ANNOUNCED RESULTS OF RANKING
The council emerged from their closed session at 6:05 p.m. and City Manager Allan Roeder announced the results of the ranking of the proposals. The recommendation is to select American Fairs & Festivals as number 1 ranked proposal and Facilities Management West, Inc. as the second.

MANSOOR VOTES "NO"!
During their comments, Mayor Allan Mansoor said he had "concerns", but wouldn't elaborate beyond indicating that they still didn't know where the money was coming from, but it seemed clear that other issues were on his mind. When the vote was taken it passed 3-1, with Wendy Leece, Katrina Foley and Gary Monahan voting "yes" and Mansoor voting "no" and Eric Bever being absent. City Attorney Barlow later reported that Bever bugged out of the closed session at 5:17 p.m. - shortly after they convened. No reason was given - maybe he just decided (again) that he didn't want to be involved.

DID RIGGY LIGHT THE FUSE?
A 3-1 vote with one absence hardly shows a unified position by our elected leaders. Because Mansoor was obviously irritated by the process, it makes one suspicious about what motives he might have for voting against the selection of American Fairs and Festivals as the first choice. Some have suggested that Jim Righeimer may be exercising his political influence over Mansoor. Since it was reported that Riggy wanted to "blow up" the process, could it be that what we're seeing here now is him lighting the fuse of that bomb?