Fairgrounds to be sold to City of Del Mar?

[MaryS]

Saw this in the paper this morning:

http://www.signonsandiego.com/news/2010 ... the-works/

Sale of Del Mar fairgrounds is arranged quietly; fair board surprised
City of Del Mar bid $120 million to buy grounds

BY MICHAEL GARDNER
WEDNESDAY, OCTOBER 6, 2010 AT 9:42 P.M.

The city of Del Mar has struck a preliminary agreement with the state to buy the fairgrounds and fabled racetrack there for $120 million, according to state and local officials.

The deal was reached behind closed doors and only came to light after legislation was introduced late Wednesday to authorize the sale.

“The activities we know and love at the fairgrounds will undoubtedly continue,” said Sen. Christine Kehoe, D-San Diego, who has been involved in the talks that have gone on quietly for months. “For all intents and purposes it will look and feel the same.”

But under different management.

Barry Nussbaum, a fair board member, said he was stunned by the developments.

“Why this would have to happen in the middle of the night without consulting experts who run this facility is flabbergasting,” he said in a telephone interview.

Nussbaum said the transfer could jeopardize contracts for events, from new races to the fair itself.

“My response is one of complete shock that something like this could happen without publicity, without public input and without consultations with fair staff or the fair board,” he said.

City of Del Mar representatives could not be reached for comment.

Kehoe, in an interview Wednesday night, said she expected the Del Mar Thoroughbred Club to stay on if the deal goes through.

The measure is part of the broader budget agreement that is up for a vote Thursday in the Legislature. Gov. Arnold Schwarzenegger, searching for new revenues, last year proposed selling all kinds of state properties, including the fairgrounds.

At the time, estimates for Del Mar ranged between $400 million and $700 million.

The $120 million would buy the city of Del Mar the 400 acres of prime coastal real estate. Kehoe said one of her goals is to bring control of future development closer to the local level.

The 22nd District Agricultural Association board has unveiled a master plan for a convention center and hotel facilities that has drawn some sharp public criticism. The fair board, as it is known, is appointed by the governor to oversee the state-owned property.

The measure would not necessarily stop the development, Kehoe said. However, she believes by having the city and local entities in charge development would be “more sensitive.”

Kehoe said the transfer would further safeguard the nearby San Dieguito River and the bill includes language that calls for “best efforts” to establish a green belt on its northern bank.

Kehoe does not expect the measure to sail through, given the controversy over the state’s move to shed properties and the local debate.

“It’s going to be a challenging day,” she said.

The city would finance part of deal through $45 million in proceeds from revenue bonds and raising $30 million from leasing the track and satellite wagering facilities, How to pay off the rest would be negotiated with the state.

The legislation also outlines membership to a city-appointed, nonprofit corporation to oversee operations and maintenance.

The panel would include five representatives of the city of Del Mar, plus one each from the cities of Solana Beach and San Diego. San Diego County would have a representative as well.

The legislation authorizes the sale. But a final purchase price and other details must still be hammered out between the state and city.

[Kermit]

Hmmm. Does Sen. Christine Kehoe smoke cigars?

[MaryS]

Moving this because it's getting national attention.

Latest rumor here is the the amendment that would have allowed this to happen has been defeated. We shall see.

[MaryS]

http://www.signonsandiego.com/news/2010 ... the-works/

Fairgrounds CEO says state's sale of track doomed
City of Del Mar struck preliminary agreement to buy the grounds and fabled racetrack for $120 million

BY MICHAEL GARDNER
ORIGINALLY PUBLISHED OCTOBER 6, 2010 AT 9:42 P.M., UPDATED OCTOBER 7, 2010 AT 12:33 P.M.

The city of Del Mar has struck a preliminary agreement with the state to buy the fairgrounds and fabled racetrack there for $120 million, according to state and local officials.

Fairgound officials said they were stunned by the developments.

The deal was reached behind closed doors and only came to light after legislation was introduced late Wednesday to authorize the sale.

This story has been updated to include comment from a Del Mar city council member and more reaction from fairground officials.

“When they have these kind of backdoor deals without public comment, it’s concerning at the very least,” said Tim Fennell, CEO of the fairgrounds said on Thursday. “This facility belongs to the people of San Diego County, and if I’m a resident of Oceanside, East County, San Marcos, Rancho Bernardo, I should be concerned. I didn’t get a vote, I didn’t get a chance to comment.”

Fennell predicted momentum for the proposal would slow and quickly die.

" I think the next day or so a lot of things will happen in Sacramento and I’m frankly confident that wiser minds will prevail ... and hopefully this will be a non-issue come Monday morning,” he said.

He said he was"appalled" at what he considered a low price of $120 million for the grounds.

When the state contemplated a sale last year, estimates for the fairgrounds ranged between $400 million and $700 million.

Del Mar City Councilwoman Crystal Crawford said the council is unanimously behind the purchase and has been meeting in closed session for months to discuss it.

“We obviously believed this was a priority,” she said Thursday. “Our main concern is that we keep this very unique property in the public domain, that we protect this unique asset for the region. The fair and horse racing is part of our culture.”

She said the $120 million price tag, a figure that is based on revenues the fairground generates, “is more than a fair price.”

"This is a once in a lifetime opportunity for our community and our region," she said.

State Sen. Christine Kehoe, D-San Diego, has been deeply involved in the negotiations and said a change in ownership would not change the nature of the fairgrounds.

“The activities we know and love at the fairgrounds will undoubtedly continue,” Kehoe said Wednesday night. “For all intents and purposes it will look and feel the same.”

Barry Nussbaum, a fair board member, said he like others was caught off guard by the plan.

“Why this would have to happen in the middle of the night without consulting experts who run this facility is flabbergasting,” he said in a telephone interview Wednesday night.

Nussbaum said the transfer could jeopardize contracts for events, from new races to the fair itself.

“My response is one of complete shock that something like this could happen without publicity, without public input and without consultations with fair staff or the fair board,” he said.

Kehoe, in an interview Wednesday night, said she expected the Del Mar Thoroughbred Club to stay on if the deal goes through.

The measure is part of the broader budget agreement that is up for a vote Thursday in the Legislature. Gov. Arnold Schwarzenegger, searching for new revenues, last year proposed selling all kinds of state properties, including the fairgrounds.

The governor's office said Thursday Schwarzenegger had no position on the bill.

The $120 million would buy the city of Del Mar the 400 acres of prime coastal real estate. Kehoe said one of her goals is to bring control of future development closer to the local level.

The 22nd District Agricultural Association board has unveiled a master plan for a convention center and hotel facilities that has drawn some sharp public criticism. The fair board, as it is known, is appointed by the governor to oversee the state-owned property.

The measure would not necessarily stop the development, Kehoe said. However, she believes by having the city and local entities in charge development would be “more sensitive.”

Kehoe said the transfer would further safeguard the nearby San Dieguito River and the bill includes language that calls for “best efforts” to establish a green belt.

Kehoe does not expect the measure to sail through, given the controversy over the state’s move to shed properties and the local debate.

“It’s going to be a challenging day,” she said.

The city would finance part of deal through $45 million in proceeds from revenue bonds and raising $30 million from leasing the track and satellite wagering facilities, How to pay off the rest would be negotiated with the state.

The legislation also outlines membership to a city-appointed, nonprofit corporation to oversee operations and maintenance.

The panel would include five representatives of the city of Del Mar, plus one each from the cities of Solana Beach and San Diego. San Diego County would have a representative as well.

The legislation authorizes the sale. But a final purchase price and other details must still be hammered out between the state and city.

[Igeteven]

I knew something was in the wind for several reason, however I didn't want to post it.

Good Luck to the new owners.

[LuckyDuck]

I knew something was in the wind for several reason, however I didn't want to post it.

Me Too

[Bob B]

I knew something was in the wind for several reason, however I didn't want to post it.

Good Luck to the new owners.

Was it after your lunch with Joe or one of the Craigs?

[Igeteven]

Bob

No, If you had done your home work and keep up with the current events on what is going on in California, you would have known something was going to happen.

There are very few people on the forum that really know the politics of horse racing here on the Del Mar Forum.

[Spiketoo]

I knew you knew Lez. I mean cuz the OC fairgrounds sold so quickly. You are a legend in your own mind.

[Igeteven]

I knew you knew Lez. I mean cuz the OC fairgrounds sold so quickly. You are a legend in your own mind.

The State wanted to sell it fast, I think it sold for 120 million and take over the debts, the property was worth around 350-400 million, that tells me, the track had debt of 200 million plus.

The City of Del Mar took it at a long term investment and it will pay off if it is run right. I know they want to get rid of the concerts and the BS that goes with it.

The City of Del Mar is a VERY conservative city, and they want to keep it that way.