Fairgrounds Sale Scab Ripped Off Again

RE-OPENING AN OLD WOUND
At the meeting of the Fair Board last Thursday morning the panel charged by the Board to investigate the proposed scheme to purchase the Fair Grounds property a couple years ago on the cheap presented their findings.  You will recall that the effort, in which several members of the Fair Board at the time formed a foundation to purchase the 150 acre Fairgrounds site, was quashed due, in great part, to the efforts of now-councilwoman Sandra Genis in her then-role as President of the Orange County Fairgrounds Preservation Society, HERE.

MEDIA ALL OVER IT
Norberto Santana, Jr., Managing Editor of the Voice of OC, first announced this move in an entry on January 17th, early in the morning, HERE.  He followed up after the meeting with another one, HERE.  Mike Reicher of the Orange County Register covered the event HERE and Bradley Zint covered it for the Daily Pilot HERE.  Read all those articles and you'll get a pretty good feel for what transpired on Thursday.

ELLIS' LIST

As you will read, calls were made for a forensic audit of the process of attempting to sell the Fairgrounds.  Major players were former state legislator Dick Ackerman and then-Fair Board President David Ellis, among many others.  When this first came up back in 2009 Ellis presented a long list to the Fair Board of individuals he insisted MUST be interviewed if the Board was to have a clear idea of what transpired in this drama.  That list in below.

As you can see, it looks like a list of everyone who ever muttered the words "Fairgrounds Sale".  I suspect Ellis knows that his challenge to interview all those people would be virtually impossible, particularly since the committee formed to do it had no subpoena power nor any authority to guarantee truthful responses.

WHAT ABOUT RIGHEIMER?
One thing that's missing in these articles is a mention of the role current Costa Mesa Mayor Jim Righeimer played in this scheme.  We know of his participation in "Save The Fair" web site, HERE.  We also know that his commentary in the Daily Pilot under his "Rigonomics" byline back in June of 2009 may have been one of the first mentions of this scheme, HERE.  Personally, I'd like to know more about his involvement.  I'm curious because it was clear at that time that he was likely participating behind the scenes.  Some will recall that ill-fated mistaken voice mail message left for a local reporter instead of community stalwart Rick Kapko informing Kapko that he was a lock to be a member of the Costa Mesa Financial Evaluation Committee before his appointment had been affirmed.  That kind of stuff makes many of us curious.

AN INVESTIGATION?

It's going to be interesting to see how this plays out.  Certainly, there are many questions left unanswered.  I find myself wondering just how far this Fair Board will wish to pursue it.  It is logical to speculate about potential legal sanctions if, for example, the State Attorney General decides to actually investigate this matter.  There is, of course, the cloud of conflict of interest hanging over that possibility, since the Attorney General is, in fact, the counsel for the Fair Board.  I guess we'll see.

Gut Punch, Then Hug For Fairgrounds Employees

FOLLOW-UP ON FAIRGROUNDS EMPLOYEE MEETINGS TODAY
This is a follow-up to my earlier post today on the meetings held with current employees of the Orange County Fairgrounds. My earlier post, based on news reports and skimpy interviews, was published before the first meeting had concluded and the second one commenced.

STATE OFFICIALS LOWERED THE BOOM
As stated earlier today, State personnel officials conducted a meeting at which the current employees of the Fairgrounds were given official notice that they would only have their jobs for 120 days and that they were eligible to seek other State employment. That was a real pre-Christmas gut punch for those 82 employees who have been whipsawed over the past couple years as the Fairgrounds Sale drama unfolded.

FIRST CHANCE FOR FMW TO MEET WITH EMPLOYEES
Following that meeting spokespersons for Facilities Management West also met with most of the group. According to Guy Lemmon, who was the primary spokesman for FMW at the meeting, this was the first time his organization has been permitted to speak with Fairgrounds employees, although they had tried to have such a meeting for many months. He was eager to meet with the employees personally and tell them, first-hand, of their plans.

LEMMON - "EVERY ONE OF THEM HAVE A JOB WITH US"
According to Lemmon, at the meeting with the employees he emphasized to them that everyone of them (except current CEO Steve Beazley) will have a job with FMW if they want it - assuming they're not a criminal. All they have to do is fill out an application - no interviews, no screening - the job is theirs for the taking. He also emphasized that their pay level will be what it was BEFORE the 4.60% cut they took earlier this year. Lemmon said he also told the employees that they would also have health insurance - not their current state plan, but some level of insurance that is compatible with their current coverage.

BECKY BAILEY-FINDLEY TO LEAD TRANSITION TEAM
In a press release issued simultaneously with the meeting FMW announced that former Fairgrounds CEO Becky Bailey-Findley will lead their transition team and will help select and train the permanent CEO. This should have been good news for the employees, since Bailey-Findley led them as CEO for several years.


WHIPLASH FOR FAIR EMPLOYEES
I have not spoken with anyone who attended that meeting except Lemmon, but I imagine his presentation to them - which lasted more than an hour, and longer for those who lingered to chat and give him hugs - softened the punch in the gut delivered coldly by the State representatives a couple hours earlier. On the one hand the State tells them they are out of a job in 120 days and then, in the other, Facilities Management West tells them they ALL can keep their jobs at a pay increase once FMW takes over. I suspect Christmas will be just a little better for most of those folks.

BEAZLEY NOT OFFERED A JOB
Back to Beazley... I spoke with him earlier today immediately following the first meeting. He indicated that he, indeed, was among those employees given the word about the potential loss of their jobs. He also indicated that he will be permitted to apply for his job with FMW but was not encouraged that he would be retained. I don't know what his plans are, but he indicated he's weighing all his options now.

SALE STALLED UNTIL 12/15/10 - AT LEAST
The sale of the Fairgrounds to Facilities Management West is stalled until a court hearing on December 15th, so we really don't know what the future holds from that standpoint. FMW will file the appropriate paperwork for that hearing later this week.

FMW COMMITMENT
During my conversation with Lemmon tonight, and in his earlier press release, he emphasized FMW's commitment to protecting the Fair and Centennial Farm and continuing the swap meet, equestrian center and the Pacific Amphitheater. I pressed him on the "swap meet" issue, since at no time did he refer to it as the "MarketPlace". Jeff Teller, operator of the Orange County MarketPlace, is one of the folks involved in the lawsuit that has stalled the sale of the Fairgrounds. Lemmon would only say that they are committed to having a swap meet at the site. He also emphasized to me their intention to make the whole Fairgrounds experience better for visitors, but declined to go into specifics.

PROPERTY TAX IMPACT
He also indicated that one factor of this sale that seems to have been completely overlooked by the media is the financial impact on our region. Although the dollars are not what the City of Costa Mesa would have received had the earlier deal gone through, the Fairgrounds in private hands now means very significant Property Tax dollars that were not realized while it was owned by the State.

WHAT ABOUT THE FAIR ITSELF?
Still pending are completion of negotiations with the current Fair Board about the personal and intellectual property involved with the Fair itself. It is FMW's hope to reach an agreement with the Fair Board on the operation of the Fair since the Fair itself is an activity owned by the Fair Board. The sale of the Fairgrounds as described in the current Request For Proposals - known as RFP II - is only for the real property, not the businesses at the site.


MERRY CHRISTMAS TO THE EMPLOYEES
So, the turmoil around the Orange County Fair and Event Center continues but at least the employees, who have been whipsawed for more than a year, can rest just a little easier knowing that they will have a job. Following the gut punch delivered by the State earlier today, it was nice for them to have it replaced by a kind hand on the shoulder. That's a nice early Christmas present for them all.

NOW WE SIT AND WAIT FOR DECEMBER 15TH...
The rest of us can only sit and wait for the results of the December 15th hearing to see which way the road will turn on the path to a sale. As always, I'll let you know more when I know more.



DEL MAR APPROVES RESOLUTION TO PURCHASE FAIRGROUNDS
In a kind of related story, tonight the Del Mar City Council approved a resolution to purchase the Del Mar Fairgrounds for $120 million, with $75 million up front in cash! Yikes! You can read all about it HERE and view a YouTube video produced by opponents below.

Bland Council Meeting - Fireworks Later

SLOW GOING
Funny thing happened last night. I went to the Costa Mesa Council meeting - got there before 5, in fact, so I could see what, if anything, might be said before the council adjourned to a closed session. Not much. Former mayor Sandra Genis reminded them that they could only discuss price and terms of the Fairgrounds Sale in that segment of the closed session - nothing else. Yeah, like that happened! Unlike previous weeks, when the chambers were packed with orderly demonstrators from the public safety organizations, there were only a couple of us in the audience. When the council returned at 6:30 after having discussed the four items on the closed session agenda and began plowing through the rest of the evening's agenda there were only a couple dozen people in the auditorium -mostly the "usual suspects" - and the remainder of the agenda was uninspiring. If you really want to you can watch it HERE.

WATER DISTRICT CELEBRATES 50 YEARS
The Mesa Consolidated Water District, at least 4/5ths of it, was honored for the 50th anniversary of the water district. Congrats to the district, who decided to celebrate with a VIP event - no members of the public were included. Ah, the lives our bureaucratic aristocracy leads...

STATUS OF FAIRGROUNDS SALE BLEAK
During Council Member Comments Katrina Foley asked City Manager Allan Roeder for a brief report on just where we stand on the Fairgrounds deal. Let me summarize his comments - he said things are at a standstill and, "it does not look good", further indicating that he anticipates a legal challenge regardless how the sale turns out. Foley asked the City Attorney for a report on the legal remedies available to the City on the Fairgrounds Sale. That set the tone for much of the rest of the meeting.

GENIS RE-HEARING REQUESTS REJECTED
When it came time for the council to address the two re-hearing requests filed by Genis the council made quick, unenthusiastic work of them by voting each request down. It was clear following those discussions and Roeder's earlier comments that the heart pretty much has gone out of our negotiating team on the Fairgrounds sale and lease. Genis may have gotten off the best line of the night when, discussing the recent closure of bidding on the new RFP, it was learned that Facilities Management West had presented a bid directly to the State, she said, "This all may be moot. From what I read in the newspapers, it looks like our prom date may be going to the dance without us."

TOUGHER GRAFFITI ORDINANCE PASSED
At the tail end of the meeting the council passed the new, tougher Graffiti abatement ordinance - the product of more than a year's work by the staff. Resident John Feeney, normally a sometimes amusing, always grumpy curmudgeon when speaking before the council, lavished well-deserved praise on Officer Jason Chamness for his efforts to craft this new ordinance and for spearheading the visible improvement of graffiti issues around our town.

BEVER ABSENT - AGAIN
By the way, I teased in an earlier post anticipating this meeting that Councilman Eric Bever might pout during the contract negotiations in the closed session. I was wrong. Nope, Bever was a no-show for the entire meeting. I guess when he says he's boycotting, he means he's boycotting his entire job as a councilman. Perhaps someone can go back and check the records to see just how many other meeting's he's missed in the past year or so. It could well be that he's just adjusting his work hours to fit the pay reduction the council agreed to take last year. More likely that Bever is throwing a little fit of petulance because he's been roundly criticized for his pronouncement about boycotting negotiations. We didn't miss him...

WWW.RIGHEIMER.COM WHITE HOT!
The real excitement of the evening occurred AFTER the meeting was over and I returned home and checked my computer. In an online article that will likely appear in print today, HERE, Daily Pilot reporters Joseph Serna and Mona Shadia report that there's a new website up and running, www.righeimer.com, that - according to the article - is the product of members of the Costa Mesa Police Department. Apparently Righeimer once owned this domain but missed a payment so it was snatched up by someone else. To say this site will be inflammatory is the understatement of the year! By the time I saw the site it had gone viral throughout Costa Mesa - many Facebook page entries and white-hot emails flew through the ether. I find myself wondering how the content on this site will square with the letter I received from Righeimer's lawyer last week? I guess we'll find out.

MAY CHANGE THE CANDIDATE FORUM TONIGHT...
I'm thinking the candidate forum scheduled for this evening may take on a very different dynamic because of this new website. We'll see in a few hours. See you there.

Council/OCFA Cross-Dressing Tonight

COSTUME CHANGES ANTICIPATED
Tonight's regularly scheduled Costa Mesa City Council meeting is going to be just a little different. Tonight the council and the Orange County Fairgrounds Authority (the Joint Powers Authority created to facilitate the acquisition of the Orange County Fair and Event Center) will slip back and forth into their respective robes - sometimes wearing both - as they try to deal with the complex issues that face this city. It may be kind of like the changing room of a fashion runway show!

ONE CLOSED SESSION, FOUR ITEMS
First, at 5:00 p.m., they will meet in closed session as both entities. Why, you ask? Well there are four items on the closed session agenda - two affect the council specifically and two affect the OCFA. There are two lawsuits, one affecting each of them, and two other matters. For the council, there is the labor negotiations (we assume Eric Bever will take a bathroom break, run out for a quick meal or just go sit in his car and pout while this is going on since he's already announced he's boycotting future negotiations). Then, for the OCFA, there is a "conference with Real Property Negotiators" for the Fairgrounds purchase/lease. It wouldn't surprise me if this one is to formally throw up their hands and give up on this process. Seems likely, since there are at least three (3) bidders for the Fairgrounds under the new RFP and it's obvious that the legislature is simply not going to pass the bill necessary to enable our sale to go forward. It's time to stop.

DISPLAY OUR "DIGITAL" DISDAIN
Maybe, just to make us feel better, we could craft a resolution condemning the Department of General Services for the unfair and obstructionist deadlines and rules they imposed upon the City during this process. To appropriately capture the spirit of the message we could send it on letterhead that includes an image of a hand with only the middle finger extended. No, I don't mean, "We're Number 1!"

BACK INTO COUNCIL COSTUME
Then, sometime after 6, the council will convene it's regular meeting and dispense with the public comments, council comments and the consent calendar.

COSTUME CHANGE AGAIN - GENIS, AGAIN
Then, once again, they will shift gears and convene as the OCFA to hear two Old Business items from former mayor Sandra Genis, who will appear as the President of the Orange County Fairgrounds Preservation Society to challenge the two resolutions previously passed by the OCFA.

SOLID WASTE ORDINANCE
Then they will jump back into their City Council garb and hold a public hearing on modifications to the city ordinance regarding solid waste haulers within the city. The first item under Public Hearings - the Triangle Square LED lights issue - has been withdrawn.

COMMITTEE APPOINTMENTS
Under New Business they will appoint or re-appoint members to the Cultural Arts Committee, Historical Preservation Committee and the Redevelopment and Residential Rehabilitation (3R) Committee.

TURNING THE SCREWS ON GRAFFITI VANDALS
At the end of the meeting they will consider a very significant change to our current Graffiti ordinance - one that will tighten up enforcement and require restitution by the guilty parties or their parents. This was discussed in their Study Session a couple weeks ago.

EMPLOYEE DEMONSTRATIONS?
It is unknown whether there will be any sort of demonstration by employee bargaining units as been the case the past two meetings.

BARLOW REPORT ON RIGHEIMER/DUI CHECKPOINT?
Neither is it known whether City Attorney Kim Barlow will present the results of her investigation into the Righeimer/DUI checkpoint issue. The tapes made at the event were released to the public, but it is our understanding that several witnesses had to be interviewed and their testimony assessed. Time's a'wastin' on this one, Ms. Barlow. The election is less than one month away.

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.

Facilities Management West Announces New Bid

FMW CONFIRMS THEIR NEW BID
In a letter dated October 1, 2010, Facilities Management West representative Guy Lemmon told Mayor Allan Mansoor and the City Council that his investment group submitted another bid for the purchase of the Orange County Fair and Event Center in response to the Request for Proposals (RFP) the State announced in August.

FMW HAD TO SUBMIT BID
In his letter Lemmon told Costa Mesa officials that they responded to the RFP because of the uncertainty surrounding their lease/purchase deal with The City. As readers will know, that deal is hung up in the legislature, which must pass enabling legislation to consummate the deal. At this time, chances of that happening are bleak.

STILL COMMITTED TO COSTA MESA
Lemmon mentions the hard work they've invested over the past nearly a year on the deal with The City and professed their commitment to the ownership principles being followed in that deal. We'll see...

MULTIPLE BIDDERS - NO OTHER INFORMATION
A call to the State Department of General Services turned up only the fact that The State has received multiple responses to the RFP by the deadline, yesterday, and that a bidder will be selected on October 14th. The number nor the names and details of those bids would not be divulged.

NO SURPRISE HERE...
I'm not surprised that Facilities Management West submitted a bid to the new RFP. With all the energy and resources already devoted to this project, it would have been irresponsible for them not to do so. In fact, as I read that RFP, it could actually turn out to be a MUCH better deal for them than the one with The City. They have said from the very beginning that their choice would be to OWN the Fairgrounds site - the new RFP provides that opportunity.

THE CLOCK CONTINUES TO TICK
So, in what seems like a never-ending drama, we must now wait another two week before knowing the fate of the Orange County Fair and Event Center. More news as it happens.

This Week Could Be Memorable

URGENT CLOSED-SESSION MEETING MONDAY
We begin what might be a very memorable week on Monday, with a hastily-called City Council meeting, scheduled for an unusual time - 5:30 p.m. - which appears from the announcement to be a closed session-only meeting.  The agenda is, so far, the negotiations with the various employee bargaining units on new contracts.
  
HOW DOES RIGHEIMER'S SHENANIGAN'S INFLUENCE  NEGOTIATIONS?
One must assume there has been significant reluctance on the union's parts to give much in the way of concessions, particularly in light of the public posture probable city councilman Jim Righeimer has taken in recent weeks.  The employee groups correctly assume that Righeimer is going to come after their wages and benefits - their pensions in particular - if elected on November 2nd.  I suppose if I were them I'd be stubborn about any kind of givebacks right now, even though the result might mean even more staff reductions to balance the budget.

BARLOW'S INVESTIGATION
Also pending Monday is a response from City Attorney Kimberly Hall Barlow regarding her investigation of the Jim Righeimer/DUI confrontation.  That event took place on Thursday, September 16th and we know she had it in her hands no later than the city council meeting of the 21st.  We're still waiting.


RIGHEIMER/ROEDER/SHAWKEY ON DUI CHECKPOINTS
This gets even more dicey because in his commentary to the editors of the Daily Pilot - published online in the OC Now blog on Friday, September 24th around 4:30 p.m. and online in the Daily Pilot about a half-hour later - which finally made print Sunday, Righeimer tells us that he's got a meeting scheduled for Monday, the 27th, with Police Chief Chris Shawkey and City Manager Allan Roeder at which the three of them will hammer out guidelines for future DUI checkpoints.

INAPPROPRIATE WHILE HE'S UNDER INVESTIGATION
I must tell you that, in my view, such a meeting while Righeimer is under investigation for inappropriate behavior which might even have been criminal - interfering with police officers in the performance of their duties - is completely unacceptable!  It's bad enough that he thinks he can demand such a meeting simply because he was inconvenienced for a few minutes while waiting to pass through the checkpoint - along with more than 3,200 other drivers that night - but it's worse that Shawkey and Roeder are going along with it.  NOTE: Shortly after 8:30 a.m. Monday morning I received a note from City Manager Allan Roeder informing me that the meeting today between him, Chief Shawkey and Righeimer has been cancelled.  He told me that even though the meeting was to discuss the requirements that go into establishing DUI checkpoints, and that it was expressly clear that NO discussion would be held about the investigation of the events of September 16th, Roeder felt it "was clearly in everyone's best interest" to cancel the meeting.  As is usually the case, Roeder made the correct decision.

RIGHEIMER'S AMENDED COMMENTARY
I've linked to Righeimer's commentary in my previous post, so you probably have read it.  If not, you can read it HERE.  If so, you noticed that the editors permitted him to correct the record in the first paragraph in which he misrepresented the date of the checkpoint.  However, we know the truth - I've made a copy of his original published commentary.  And, of course, that wasn't the only false statement in it...

UNION PRESIDENT SPEAKS
For a different view of Righeimer's performance at the DUI checkpoint you may find this video clip of Costa Mesa Police Association President Allen Rieckhof's comments to the City Council at their meeting Tuesday, September 21st.


BARLOW MUST ACT WITH HASTE
Ms. Barlow must know that this issue requires haste in resolving it.  She needs to get into her best Angela Lansbury mode and investigate the incident and report to the public her findings.  We're waiting, and not very patiently.

MEDIA INTERROGATORS MUST BE SALIVATING
Then, on Thursday, September 30th, we have the much ballyhooed "Media Feet-To-The-Fire-Forum" at the Costa Mesa Neighborhood Community Center - doors open at 6:30 p.m. - at which many local media types will interrogate not only Costa Mesa politicians, but those running in Newport Beach, too.  I imagine they're either drawing straws or arm-wrestling each other for the chance to grill Righeimer on his DUI situation.  This is going to be wonderful theater.

DEADLINE FOR FAIRGROUNDS BIDS

That same day, Thursday, is the deadline for submission by interested parties any bids for the Orange County Fair and Event Center based on the second Request for Proposals issued last month.  Because the State budget is still pending as I write this, and because we've had no word about a bill enabling the Costa Mesa sale to be completed, we assume there will be several bidders for the Fairgrounds under the new RFP.  I wouldn't be surprised to find Facilities Management West among those who have presented an offer.  And, of course, we have even more drama on that subject created by the current Fair Board, who has taken the position that the State may not have the right to sell the property in the first place, and if they do, they may have to split the proceeds with the 32nd District Agriculture Association (Fair Board).  The State's Department of General Services, through it's acting Director, has advised the Governor to ignore that little tidbit and move forward with the sale.  Ya gotta love it!

SO MANY QUESTIONS.
So, will we see Righeimer in handcuffs this week?  Will he assert the power he thinks he has as an appointed commissioner and go forward with his meeting with Roeder and Shawkey?  Will the media types at the forum Thursday shred him like cole slaw?  Will a bidder offer the Governor a price he can't refuse for the Fairgrounds?  Guess we'll find out...