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!

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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.

THE "DP 103" ANNOUNCED!

THE BEST LAID PLANS...
Well, I had fully intended my previous entry to be the last of the old year, but...

TODAY IS "DP 103" DAY!
The good folks at the Daily Pilot chose today, the last day of the year, to announce the latest iteration of the DP 103 - one hundred three people and things that they deemed to be the most influential in the Newport-Mesa community over the past year. Here's the link to the article.

MOST ON MY LIST MADE THE CUT
The editors solicited input from the community recently to help them fill out their roster, so good citizen that I am, I fired off a message listing some nominees. Happily, I noted as I scrolled down the roster late last night online, that they'd included about 60% of those names I submitted. I'm sure I was not the only one to submit them. And, NO, I was not on my list! The remainder of my submissions didn't make the cut - being beat out by #102, Babe the Bobcat and #103, 'Fiddler" the seal. Oh, well.. :-)

SIDE-BY-SIDE
For the second time I was included in this list, which made me smile. This is a fun exercise, scrolling down the list of your friends and neighbors (there are some who are neither, too) and chuckling at the reasons for the selection. I know the editors put a lot of effort into this year-end effort and clearly have some fun doing it. For example, they snuggled up some folks adjacent to others with whom they have tenuous relationships. Register columnist Barbara Venezia, at #64, immediately follows her political nemesis and Orange County Fair Board President and political king maker Dave Ellis, at #63. I have to chuckle about that pairing because of the history between them.

OPPONENTS JUXTAPOSED
Another fun grouping is #12, Sandra Genis; #13, Guy Lemmon; #14, Steve Beazley and #15, Jose Solorio. All those folks were among the most prominent luminaries in the Great Fairgrounds Debacle that dominated the news the last two years of this decade. As I read those names in a line like that I can't help but reflect on the many encounters they've had with each other as the Fairgrounds issue was flogged and flogged and flogged.

WHAT A "SANDWICH"!
I, on the other hand, at #65 am the "meat", as it were, sandwiched between the vivacious #64, Barbara Venezia and the delightful #66, Crissy Brooks. Couldn't ask for better company near the middle of the pack.


RIGHEIMER NOT MY CHOICE FOR #1
I was surprised at the ranking of Jim Righeimer as #1, but I suppose it makes some sense - even though he doesn't. This year there probably has been no more controversial a local figure than old Riggy. My choice for the top spot would have been soon-to-retire Costa Mesa City Manager Allan Roeder. In my book, he tops the list - any list - when it comes to his contribution to our community. Instead, the editors placed him at #3, just ahead of his Newport Beach peer, Dave Kiff.

MC EVOY ON THE LIST
I was happy that young Chris McEvoy, at #34, was chosen for this list. Despite running the barest of bare-bones campaigns he fought a good fight and gave Righeimer a real reason to worry. Both the cities served by the Daily Pilot need bright young folks to get involved in the political process. Let's hope McEvoy's actions encourage others to participate.

SOME MISSING "REGULARS"
There were a few "regulars" who didn't appear this year, including a grumpy old guy who operates another local blog. That's OK, though... this is a fun thing and I'm sure he lives every day without a smile.

THANKS TO THE DAILY PILOT
Thanks to Editor John Canalis and the rest of the good folks at the Daily Pilot for, once again, providing this fun, interesting exercise for us to ponder. It's interesting to see your friends and neighbors recognized for the contributions they make to the community, and to read unfamiliar names and accomplishments that broaden our appreciation of the terrific folks who inhabit the Newport-Mesa. Have fun as you read down the list...

HAPPY NEW YEAR TO YOU ALL
So, on the 44th anniversary of our very first date, my sweet and patient wife and I wish you all a very Happy New Year. I hope you'll find reasons to visit this site often next year - it looks like it's going to be another interesting one!

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.

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.

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.