MOU summary
On the evening of Tuesday June 22, at around midnight, the
Costa Mesa City Council, acting in their capacity as the Orange County Fairgrounds Authority (OCFA), voted
to enter into a Memorandum of Understanding (MOU) with Facilities Management West to lease and manage the
Orange County Fairgrounds for the next fifty five (55) years.
As currently written, the MOU is a terrible disappointment. While the Orange County
Preservation Society wishes to see the land continue as a fairgrounds, we are concerned that the pending
agreement provides for no meaningful public oversight as to operations or specific uses. Our goal had been
to preserve the existing uses at the fairgrounds with full transparency and accountability to the public.
The proposed agreement provides neither.
Just once a year, Facilities Management West will present its plans to the City
Council/OCFA. The City Council/OCFA will be able to offer comments and suggestions, but Facilities
Management West will be under no obligation to actually address the City’s concerns.
Under the MOU, Facilities Management West will have the right to alter existing
improvements to the property and build new improvements without consent of the City
Council/OCFA. Facilities Management West will have the right to subdivide the land. Facilities
Management West will be able to enter into contracts for subleases, licensing agreements, operating
agreements and other contracts without City Council/OCFA approval. That means there will be no public
hearings or opportunity for the general public to be heard.
In accordance with the Costa Mesa General Plan, the land must be used as a
fairgrounds. This includes exhibitions and conferences, equestrian uses, agriculture and livestock
activities, an outdoor marketplace, temporary retail sales, concerts and entertainment uses. This is true
regardless of who owns the land.
Under the MOU, the annual fair, Centennial Farm, Youth Expo, equestrian uses, and
reciprocal parking with Orange Coast College and other parties would continue, subject to FMW reaching an
agreement with OCC and those other parties. It is not clear what will happen if FMW and OCC do not agree on
terms. The Orange County Market Place would continue for up to an additional eighteen months, unless FMW
decided to exercise termination rights sooner.
Under the MOU, Facilities Management West will have the right to relocate and resize
any of the required uses, so long as they are maintained in some form at a minimal size. Approval of the
City Council/OCFA will not be required, so this can all occur without public hearings.
Nothing in the MOU addresses neighborhood impacts. Under the MOU, Facilities
Management West, or their sub lessees, could operate around the clock. Events could be booked
simultaneously for different parts of the site. Should operations result in the type of gridlock
experienced years ago from fairgrounds operations, the City/OCFA will have little they can do. The
City/OCFA will have no authority over events or operations at the fairgrounds.
The City’s authority over the property will not be much different than if it had been
sold at auction -- maybe worse. Under the MOU, if the City adopts new zoning restrictions for the land to
address problems as they arise, Facilities Management West will have to be reimbursed financially.
Though the Memorandum of Understanding has been approved, the final lease documents
and trust deed have not yet been finalized. We urge you to contact the Costa Mesa City Council (op2council@ci.costa-mesa.ca.us ; 714-754-5285), the Mayor (AMansoor@ci.costa-mesa.ca.us ), and the Governor’s office (916-445-2841) and
demand that they provide for openness and public accountability in future governance of what is still
our fairgrounds, at least for a few more weeks.
OCFPS Presidents
Response
Subject: Special Meeting, Monday
May 10th at 4pm
With the help of thousands of local
residents, we convinced Governor Schwarzenegger to set aside the auction of the Orange County
Fairgrounds to a shopping center developer. The State is now
negotiating exclusively with the City of Costa Mesa, but we can’t rest yet. Either side could back away.
We must
encourage the City Council to keep moving forward, to keep this precious public asset in
public ownership. We must continue to urge the Governor (phone 916-445-2841) to do the
same.
Monday May 10, at 4:00 pm, the Costa Mesa City Council will hold a special
meeting torank potentialpartners inthe
fairgrounds purchase. That will set the course of future actions. The meeting will be at City Hall, 77 Fair Drive, Costa Mesa.
Please plan
on attending. Urge the council to continue negotiations with the State to purchase the fairgrounds
and keep it in public
ownership. Ask them to conduct future
governance of the fairgrounds with full openness and
accountability to the public.
If you cannot attend the meeting, you can
e-mail the council atCAgenda@ci.costa-mesa.ca.us
andop2council@ci.costa-mesa.ca.usor call the City at (714) 754-5285.
Contact the mayor atAMansoor@ci.costa-mesa.ca.us . However, we strongly
encourage you to attend the meeting in person.
May 18, 2010 starting at 6:00
pmis the last currently scheduled City Council
meeting before the State’s deadline to complete negotiations. This meeting may also be
critical, so please save that date. This will likely be our last chance to provide input before
the City makes its final decision on the potential purchase.
As the State deadline approaches, the City may schedule additional
meetings.
The agenda has finally been
posted for the special council meeting on Monday http://www.ci.costa-mesa.ca.us/council/agenda/2010-05-10-S.pdf
. The
City council will be ranking their potential partners. One partner
proposes to manage he property on behalf of the City, with the city holding title to the
land. Under the other proposal the City would pass title to the land over to a private
party. We didn't work this hard to see the fairgrounds pass out of public hands into private
ownership. It is imperative
that as many people as possible attend. Bring your neighbors, relatives, friends,
etc. and forward the message below. Thanks.
April 21, 2010, the City of Costa Mesa
presented its proposal for purchase of the Orange County Fairgrounds to representataives of Governor
Schwarzenegger. At this point it looks like we can be cautiously optimistic, though calls to the Governor
(916-445-2841) are still helpful.
City staff and consultants have really
done a great job putting the proposal together in the short time frame demanded by the Governor's
office. A special thank you to City Manager Allan Roeder, Kathy Head of Keyser Marston, and Becky
Bailey-Findlay for all their work and long hours. Thanks also to the Costa Mesa City
Council.
$96M offered for
fairgrounds
Proposal delivered to governor’s office does not state how Costa Mesa plans to finance
the potential purchase.
By Mona
Shadia
Costa Mesa has offered the state $96 million to buy the
Orange County Fairgrounds — the minimum that Sacramento is hoping to get from the sale.
The proposal does not state how the cash-strapped city plans to raise enough money to buy the property.
Council members Katrina Foley and Gary Monahan and City Manager Allan Roeder discussed the proposal Wednesday
in Sacramento with Fred Aguiar, the governor’s deputy chief of staff.
Foley said the cost of the fairgrounds will be handled through a consortium of private operators.
The city has yet to choose those private operators, Foley said, and a list will be finalized within the next
two weeks.
The state put the fairgrounds up for sale as part of a plan to shore up funds, and held a live auction in
January.
Although the 150-acre fairgrounds was not appraised, the state Department of General Services, which is in
charge of selling the property, estimated that the sale could bring in $96 million to $180 million.
In March, the state rejected all bids. Newport Beach-based Craig Realty Group, an outlet-mall developer,
offered $56.5 million, the highest bid.
The city then began negotiating exclusively with the state and was given an April 21 deadline to submit a
proposal.
http://www.dailypilot.com/articles/2010/04/21/politics/dpt-fairgrounds042210.txt
Here is a copy of the Press Release from the City of Costa Mesa along with the letter
they sent to the Governor.