Fairgrounds Sale Officially Dead

CAN YOU HEAR HER?
Well, it looks like the fat lady has finally sung for Facilities Management West. In an article by several Orange County Register reporters just after noon today and updated an hour ago, HERE, the State of California is apparently no longer interested in selling the Orange County Fair and Event Center. Of course, the timing of this news, on the opening day of the annual Orange County Fair, is fortuitous.

SALE R.I.P
According to the Register article, FMW has no plans to file an appeal the ruling earlier issued by the 4th District Court of Appeals. So, this news effectively drives a stake in the heart of FMW, and any other potential bidder for the Fairgrounds.

WHAT NOW, DAVE?
I'll be VERY interested to see how the Fair Board follows through with their revenue sharing proposal they pitched to the State earlier this year. I'll also be interested to see what new developments Board Chairman Dave Ellis and the CEO, Dr. Steve Beazley, plan to propose now that the lawsuit is out of the way and the path seems clear for them.


ENJOY THE FAIR...
So, let's all enjoy the Fair this year. I can hardly wait to run over there and get some Deep Fried Kool-Aid! OMG! :-)

FMW Farewell?

RECALLING THE JOURNEY
Now that it appears that Facilities Management West is apparently no longer in the running to purchase the Orange County Fair and Event Center I took a little time today to reflect on the drama that has been this whole "sale" fiasco over the past couple years. I won't even attempt to chronicle all the twists and turns for you here - maybe someone else will - but it's safe to say that this was very much akin to Mr. Toad's Wild Ride at Disneyland.

MESSY FROM THE START
From the very get-go, when then-Governor Arnold Schwarzenegger decided to sell the Fairgrounds and the Fair Board attempted a stealth purchase - a move that was perceived by many as an attempt to buy the site on the cheap and use it as a retirement nest egg - things were messy, messy, messy.

WHO WOULD BELIEVE THIS?
The on-again, off-again sale process; the sale-that-wasn't-a-sale; the various factions attempting to buy the property or stop the sale; the rancor between long-time business partners; the multiple trips to Sacramento by City officials to pitch their plan; the City dancing with FMW, then being left at the altar; the shape-shifting by Jim Righeimer; the stupid voice mail message he accidentally left on Norberto Santana's phone; and on and on and on... You couldn't write this kind of farce if you tried.

LEMMON
When FMW was attempting to partner-up with the City of Costa Mesa, I got to know some members of their management including their main spokesman, Guy Lemmon. He's a very nice guy who does a wonderful job representing FMW's interests. I also met several times with other members of their PR apparatus as they tried to sway me to their side of the issue. Here's a good example of Lemmon's pitch for the FMW purchase of the land.



SORTING THE WHEAT FROM THE CHAFF
I was surprised when FMW jilted the City of Costa Mesa and decided to go it alone in the sale process and was amused at the drama spinning around the sale. All along, I tried to carefully listen to both sides of the argument and tried to sort the truth from the fabrications. It wasn't easy.

MOMENT OF TRUTH
I think FMW lost me that fateful night when their leader, Ken Fait, stepped up to the speaker's podium in an attempt to rescue his associate, Richard Dick, from a peculiar grilling he was getting from then-mayor Allan Mansoor. Lemmon was in Arizona for the birth of a grandchild, so the FMW hierarchy was left on their own to deal with Mansoor, who was not part of the negotiating team but acted like he was that night. This short video clip will demonstrate why Fait became the face of FMW from that night on. As you watch it you'll understand why so many people distrust his motives.


UNLESS...
So, unless FMW decides to appeal this case to the State Supreme Court, they are done. Unless old/new Governor Jerry Brown decides to move forward with the sale of the Orange County Fair and Event Center, all this drama is finished and now the current Fair Board can move forward with their profit sharing scheme. What a ride!

***

ON THE ROAD AGAIN...
Don't panic if comments don't get posted promptly... I'll be on the road, away from any computer for a few hours, but your thoughts will, eventually, get posted.

Voice of OC - Appellate Court Says NO to FMW

FMW BID DEAD
Norberto Santana, Jr. at the Voice of OC blog, HERE, reports at 3:00 today that the 4th District Court of Appeals denied the Facilities Management West request to re-hear its decision that halted the sale of the Orange County Fair and Event Center.

PLANS FOR RESURRECTION UNCLEAR
It's unclear whether FMW will take this issue to the State Supreme Court or not. According to the Voice of OC article, they are mulling that issue over.

Fairgrounds Sale Quashed

THE BIG NEWS!
Before I could even sit down in the Council Chambers last night my cell phone began vibrating with text messages and at least three people approached me to see if I'd heard the BIG news - that the 4th District Court of Appeal that afternoon tossed out the sale of the Orange County Fair and Event Center (Fairgrounds) to Facilities Management West. Joe Serna has the story in the Daily Pilot, HERE.

DGS SCREWED UP
According to Serna, Presiding Justice William Rylaarsdam wrote that the State Department of General Services screwed up (my words) by not having an outside appraisal of the property done before making the deal with FMW. According to Serna, Rylaarsdam wrote, "The Legislature reserved for itself the opportunity to veto the sale if it was not satisfied with the terms of the sale in comparison with the fair market value of the fairgrounds. It never got that opportunity... any future sale must begin at square one."

FMW NOT HAPPY CAMPERS
As you might expect, the folks at Facilities Management West are not pleased with this outcome. I suspect the image on the left of FMW President Ken Fait shows just about how he felt receiving the news. In a statement sent to me this evening their spokesman, Guy Lemmon, said, "We disagree with the appellate court's decision. We are weighing our options, and considering an appeal. The sales process was open, fair and in full compliance with the law.

The appellate court's decision will have a chilling effect on the governor's plans to sell nonessential assets to address the current fiscal crisis."

FAIR BOARD IS ALL SMILES
On the other side of the issue, Serna quotes Orange County Fair President and Chief Executive Dr. Steve Beazley as stating, "I think what this does is the inevitable - it puts it in the hands of the governor. There's many who thought this was going to be his final decision the whole time."

Serna quotes Fair Board Chairman David Ellis as stating, "The ball's in the governor's court."

APPEAL OR NOT?
So, now we wait to see if FMW appeals this decision to the State Supreme Court and/or if Governor Jerry Brown finally makes his position known on this issue.



GENIS, FOLEY, LEECE SMILIN' - THE GUYS ARE NOT
As an aside, there were mixed feelings in Council Chambers tonight. Former Mayor Sandra Genis was so giddy about this news that I thought she might cartwheel down the aisle. Former council member Katrina Foley also showed up to be sure the council heard the news. There was only one smiling face on the dais when the news was announced, first by Genis, then by Foley - that of Wendy Leece. The council majority didn't seem pleased at all - which made me smile all the more.

The Impact Of Monahan's Letter

FMW AND AB 35
Yesterday, while Richard Dick stood before the City Council to tell them of the evils of Jose Solorio's AB35, another part of the Facilities Management West team was dispatched to Sacramento to speak before the Assembly Appropriations Committee about the bill. Their PR folks were kind enough to send me a link to the text of the presentation their spokesman, Guy Lemmon, was planning to make before that committee Wednesday. You can read it in its entirety HERE.

MONAHAN'S LETTER
During the City Council meeting Tuesday evening several speakers stepped up and criticized Mayor Gary Monahan for recently sending a letter on City letterhead, signed as Mayor, opposing AB35 and supporting the purchase of the Orange County Fair and Event Center by Facilities Management West. That letter, and his response to the criticism Tuesday evening, made it clear that he's a big supporter of Facilities Management West's bid. You can find his letter HERE.

"WHAT'S THE BIG DEAL?"
Some of Monahan's supporters ask us "What's the big deal? It's just his personal opinion." Well, a review of Lemmon's prepared text demonstrates for us EXACTLY what the problem is. Early in his text the following two paragraphs appear:

HERE'S THE "BIG DEAL"
"We have recently distributed a letter to the committee regarding our opposition to AB35, the measure before you today. Our letter lays out in some detail the history of the transaction, and how the sale authorized by the state contains benefits far more lucrative and beneficial than what is vaguely promised in AB35.

In addition, the committee also received last week a letter of opposition from the city of Costa Mesa. The two letters combined express the details of the fiscal concerns of this bill."

COSTA MESA SUPPORT IMPLIED
Clearly, Lemmon's testimony is designed to imply that the City of Costa Mesa, based on Monahan's letter, officially opposes AB35 - which is absolutely not true. There has been NO official position taken on that bill in open meetings. However, the way this council operates, there may have been discussions in closed session and decisions made, but the law requires that such official positions be made in open session. No discussion of this issue has taken place and no vote of the council instructing Monahan, as mayor, to relay an official position has been taken.

TWO CONCLUSIONS
We are left with a couple conclusions to draw from this situation. First, Monahan went rogue - off on his own, without consultation or acquiescence of the majority on the council - and sent his letter to Sacramento. Or, second, his letter DOES represent the position of the majority on the City Council, but that it was arrived at secretly, in violation of The Brown Act. I see no other alternatives.

MONAHAN MUST RECANT
The voters of this city, with their overwhelming support of Measure C last year, made it clear that they oppose the sale of the Fairgrounds - to anyone. In my view Monahan should immediately send a letter of clarification to the Assembly Appropriations Committee informing them that his letter was his opinion ALONE and that it did NOT represent the official position of the majority of the City Council nor the residents of this city.

LATE BREAKING!
AB35 PASSES APPROPRIATIONS COMMITTEE
Late today Solorio's bill passed the Appropriations Committee on a 10-2 vote. Read about it HERE.

Wa'sup With The Fairgrounds?

NOW ON SIMMER
The boiling tumult that was the sale of the Orange County Fair and Event Center (Fairgrounds) has been on simmer for the the past couple months awaiting resolution of the legal challenges to the sale and to see if New/Old Governor Jerry Brown will use his executive power to halt the sale.

WHO DO YOU BELIEVE?
Parties on all sides of the issue - it's not really a two-sided issue, more like a parallelogram - have quietly jockeyed for position in the arena of public perception, hoping to be viewed as the "real" savior of the Fairgrounds. Jaded members of the public seem unwilling to buy any "I'm really a good guy" argument at this time, but we'll see.

ORANGE COUNTY FAIRGROUNDS PRESERVATION SOCIETY
Sandra Genis' Orange County Fairgrounds Preservation Society remains poised to pounce if it looks like the sale will go through. Over the past couple years Genis has spent countless hours lobbying with government officials at the local and state level trying to quash the sale.


FACILITIES MANAGEMENT WEST - "WE'RE GOOD GUYS"
Potential owner Facilities Management West recently issued a press release in effect telling the world that they are good guys and would be good stewards of the Fairgrounds if the sale goes through. Since President Ken Fait's little tirade before the City Council many months ago folks are having a hard time conjuring up the image of him as a benevolent owner.

PARTNERSHIPS AND PROFIT SHARING
Last week the management of the Fairgrounds, through their CEO, Dr. Steve Beazley, issued a couple press releases. The first, HERE, issued on March 24th "announced several forward-looking endeavors to enhance partnerships and profitability" and went on to talk about its relationship with Barrett-Jackson, including a new 85,000 square-foot exhibit hall to be used for the car auction. It also addressed the plan to find a partner for an 8,500 seat Pacific Amphitheater concert venue - we're assuming this would be a covered building that would deflect any future "noise" issues.

32ND DAA OWNS THE FAIRGROUNDS!
The second, HERE, issued the same day, announced the Fair Board affirmation of its belief that the 32nd District Agriculture Board actually owns the 150 acre site and pledged to halt the sale. The Fair Board has apparently unleashed it's legal counsel toward that end. This is good news.

ELLIS SPEAKS!
Then, today, OC Weekly Chasen Marshall gave us his most recent view of the whole Fairgrounds issue, HERE, and actually got Fair Board President David Ellis to speak for attribution! Be still, my heart! Ellis actually is quoted by Marshall, when asked about the stealth non-profit creation that was at the cornerstone of the controversy nearly two years ago, as saying, "I'll be the first to admit I was in the middle of all that..." You can read the rest of his quote in the article at the link I provided.

BYRON DE ARAKAL JOINS FAIRGROUNDS TEAM
At the end of Marshall's piece today he announced to the world that my friend, Byron de Arakal, has been retained as a public relations consultant by the Fair Board. I've known about this assignment for a little while, but withheld comment until it was officially announced - I guess we're at that point now. I've teased my pal about this assignment since we first began talking about it. Much like Bill Lobdell's assignment with the City of Costa Mesa, Byron is going to have his hands full with this one regardless which way the sale goes. I've teased him about being a "corporate make-up artist", alluding to that old "lipstick on a pig" analogy. One thing I think we can anticipate is crystal clear communications coming from the Fair Board while Byron's onboard. We'll see...

O.C. MARKETPLACE OUT?
And, the fate of the Orange County MarketPlace remains in doubt. Operator Jeff Teller may find himself odd man out regardless which way the sale is resolved. It's clear from public pronouncements that Facilities Management West feels (felt?) that they could operate the upscale swap meet better. And, Teller is currently in "negotiations" with the Fair Board about problems with his rent. The drama continues...

Fairgrounds Appeal Stalls Sale

APPEAL COURT "STAYS" THE SALE
Late this afternoon the Court of Appeal of the State of California Fourth Appellate District, Division Three granted an immediate stay in the pending sale of the Orange County Fair and Event Center to Facilities Management West or anyone else by the State Department of General Services . According to court documents, "the stay shall be in effect until further order of this court. Defendants and respondents are invited to respond to this petition on or before Monday, January 10, 2011." You can read the brief Daily Pilot article on the stay HERE.

FACILITIES MANAGEMENT WEST TO FILE RESPONSE PROMPTLY
Following this news I spoke briefly with Tom Gibbs, attorney for Facilities Management West, who advised me that they will, indeed, be filing a response to this stay. He did confirm that this stay will be in place until the Appellate Court decides to remove it - if ever. When I asked Gibbs what he thought about the prospects for this sale once Jerry Brown takes office he had no comment.

GENIS, TELLER, FOLEY, ETAL NOT AVAILABLE FOR COMMENT
Representatives of Advanced Real Estate Services and the Orange County Fairgrounds Preservation Society could not be reached for comment - they're probably out partying!

DRAMA CONTINUES
So, the drama continues. Instead of a lump of coal in their stockings in the form of a consummated sale this Christmas, the opponents find themselves with new life in their battle to prevent the Fairgrounds from being sold to anyone. Their euphoria may be short-lived, though, since Facilities Management West has proven to be a persistent and aggressive opponent.

HAVE YOURSELF A MERRY LITTLE CHRISTMAS
So, let's all just let this simmer for a couple weeks and enjoy our holidays. Frank, if you please...

Fat Lady Warming Up?

CAN YOU HEAR HER YET?
According to reports in the Daily Pilot, HERE, and the Orange County Register, HERE, Orange County Superior Court Judge Michael Brenner ruled against every element of the lawsuits filed to stop the sale of the Orange County Fairgrounds to Facilities Management West.


HANGING BY A THREAD
Judge Brenner did, however, extend the temporary restraining order until late next Tuesday (the Register says 4:30, the Pilot says 4:00) to provide time for petitioners to petition the Appellate Court for a rehearing. Apparently, if that move is successful, the TRO will remain in place until that court makes a ruling. I tried to reach representatives of the petitioners for a comment but have received no reply yet. I'm going to assume they will move briskly with an appeal since they've come this far. If they can get an appeal court to agree to hear this case, the upcoming holidays may drag this out long enough that the new administration will take over in Sacramento and put a stop to the sale, period.

MONAHAN ASSURES US - WHY?
In an interesting bit of juxtapositioning, yesterday former and current Costa Mesa Mayor Gary Monahan wrote a Community Commentary in the Daily Pilot with the title, "Facilities Management will do what's best", HERE. I guess we can blame the incorrect name of the company on a headline writer - the company's name is Facilities Management West. My question is, "Best for whom?"

OK, GARY - IF YOU SAY SO...
In his piece Monahan assures us of the good character of the folks at Facilities Management West that he helped negotiate with during our ill-fated attempt to partner-up with them to purchase the Fairgrounds from the State. He vouches for FMW's "professionalism and integrity in all the dealings we have had together." Hmmm, am I the only one who remembers former mayor Allan Mansoor reading the riot act to FMW principle Richard Dick from the dais for what was described as abusive treatment of our negotiators by FMW's negotiators? Who are we to believe here? Do we not remember that part of our deal was apparently hammered out at Monahan's gin mill? I want to believe Monahan, but....

SIX DAYS LEFT...
So, the clock continues to tick until late Tuesday afternoon, appropriately, the first day of winter, to see if Jeff Teller and Sandra Genis can convince an appeals court to hear this case. If not, next week that fat lady will be belting out a tune - and it won't be a Christmas Carol.
A REMINDER...
I'll leave you tonight with a reminder of the goal of Facilities Management West as articulated to Mansoor by principle Ken Fait last spring.

Another Lawsuit Filed In Fairgrounds Sale

OCFPS FILES A LAWSUIT TO STOP SALE
The Orange County Fairgrounds Preservation Society today announced yet another lawsuit to try to block the sale of the Orange County Fair and Event Center. The following is a segment of the announcement distributed today.
LAST DITCH EFFORT
The OCFPS, headed by President Sandra Genis - a former mayor of the City of Costa Mesa - is making what may be described as a last ditch defense in this drama. As you can see, the OCFPS is joined by State Assemblyman Jose Solorio, State Senator Lou Correa and soon-to-be former Costa Mesa City Council member Katrina Foley.

HEARING ON OTHER LAWSUIT WEDNESDAY
The sale of the Fairgrounds has been in "Pause" mode until a hearing next Wednesday, December 15th. It's unclear from the information provided whether the OCFPS has joined that other lawsuit - it appears to be a stand-alone effort.

NO PEACE ON THIS ISSUE
Just when you thought you could kind of doze through the holidays without another reason to lose sleep over the Sale, here's yet another piece of wood on the fire, er, pyre (as in funeral pyre).

PUTTING THE BRAKES ON UNTIL JANUARY
This move by the OCFPS is clearly a strategic maneuver - an attempt to derail the sale or at least run it off to a siding until a new governor is seated in January. It does present some very interesting questions, including the whole issue of who actually owns the Fairgrounds.

STAY TUNED
So, stay tuned as this drama continues to unfold. Life is never boring in Costa Mesa...

HAPPY HOLIDAYS TO YOU ALL
I leave you with yet another little piece of holiday music to get you back into the old spirit. Sing it, Johnny...