Fairgrounds to be sold to City of Del Mar?

[Clockerbob]

The music concerts goers are a big part of Del Mar's attendance
and revenue. $125 Million is a low ball price for that
slab of land.

[Bob B]

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

Thank God that we have, you, on this forum to inliten us...

[Igeteven]

The music concerts goers are a big part of Del Mar's attendance
and revenue. $125 Million is a low ball price for that
slab of land.

This what I heard, The City hates them, takes up too much time with their Police Dept , I guess when they see the revenue they may change their mind.

[Clockerbob]

I lived in Del Mar for several years and
the fairgrounds is a separate state.
What goes on at the fairgrounds isn't seen, heard, or felt in the hills of del mar,
Traffic yes....Now,
several people have written that the
fairgrounds is in debt.
What operation the track-concerts-exhibitors-off-track betting?

[DegenerationX]

Believe me on this. Weezer will NEVER EVERRRRRRRRRRRRR perform within the Del Mar city proper again.

[Kermit]

I lived in La Jolla and Del Mar. I don't think they are that conservative, unless maybe you compare Del Mar with every beach city up Hwys 1 and 101. I liked the Jazz concerts they used to have. Always stayed for those. Would probably pass on some of the recent ones, but then again I come for the horses and the wagering, not the beers and Weezer.

[Kermit]

Note: Rat was a La Jolla group.

[MaryS]

Latest update:

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

Proposal to sell fairgrounds to Del Mar stirs up dust

By Michael Gardner, Jonathan Horn and J. Harry Jones

Originally published October 6, 2010 at 9:42 p.m., updated October 7, 2010 at 10:01 p.m.

DEL MAR — If Thursday was any indication, the proposal for the state to sell the Del Mar Fairgrounds to the city of Del Mar for $120 million will kick up plenty of high-stakes acrimony.

In Sacramento , a powerful legislator criticized the sale legislation brokered by state Sen. Christine Kehoe, D-San Diego, while she and others touted its strengths. Similar volleys of vitriolic words were exchanged in the San Diego area.

The political maneuvering could reach a showdown next month, when supporters hope to bring it up for a vote if the governor calls a special session of the Legislature.

The preliminary sale agreement for the fairgrounds — home to the county fair, horse racing and roughly 300 other events that attract millions of visitors — had been in the works for months but came to light only late Wednesday, when the legislation was introduced in Sacramento.

It would authorize the sale of more than 350 acres, including areas east of Interstate 5 in the city of San Diego.

Kehoe’s bill was pulled Thursday after it appeared it would fail to garner the 2/3 majority approval needed. If the legislation comes up for a vote next month, it would require just a simple majority for passage.

Kehoe said she will work with Del Mar officials on making “refinements” to the proposal during the coming weeks. If the November target doesn’t work out, she plans to pursue the issue again next year.

She faced resistance Thursday from some members of the San Diego County legislative delegation, including Assemblyman Martin Garrick, R-Solana Beach. The recommended sale price and the timing of the legislation elicited the most complaints.

“Del Mar is a treasure located in an irreplaceable location. This bill was rushed through at the last moment, without going through the competitive bidding process and not seeing daylight like it needed to,” Garrick said.

He also deemed the $120 million asking price as too low.

Sen. Mark Wyland, R-Solana Beach, described Del Mar’s bid as “an interesting idea but very complex.”

City officials said they want to buy the fairgrounds to preserve it for the entire county. The state has been discussing selling off real estate assets to help reduce the budget deficit, and the fairgrounds have been on the consideration list. Last year, Gov. Arnold Schwarzenegger included the property on his list of proposed sales but ultimately abandoned the idea.

Richard Earnest, the mayor of Del Mar, said Thursday that the deal would be good for the overall region and might save horse racing for Southern California in the long run.

He said the City Council backs the strategy unanimously and believes the city has enough assets to pull off the financial transaction.

“We would like to make it a first-class facility for horses and agriculture. That’s the impetus for doing this,” Earnest said. “But I have to say that the deal isn’t close. ... Well, we have the business points more or less worked out, but the political pieces are really juggling around and I’m not sure where it’s going to end up.”

Meanwhile, members of the Del Mar fairgrounds board and administrators expressed outrage that a sale was being contemplated and that negotiations have been taking place without their knowledge.

Tim Fennell, CEO of the fairgrounds, said activities at the site provide 5,000 full-time jobs and have a $400 million economic impact on the region, all of which could be put in jeopardy if the city took control.

“When they have these kind of back-door deals without public comment, it’s concerning at the very least,” Fennell said. “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.”

Barry Nussbaum. president of the fairboard whose members are appointed by the governor, said the board serves 3 million people a year with 300 events aside from horse racing and the fair: “all that’s now in jeopardy by turning over management to people that don’t run fairs, that don’t run horse racing, that have not even been here to look at our books.”

But Mayor Earnest said that in fact should the city buy the property in all likelihood those who manage the facility would be kept where they are, at least for awhile.

“They have people over there who know how to run a fair, who know how to run a racetrack. We’re not going to disrupt that.”

Del Mar is the smallest city in San Diego County in both size and population at just two square miles and about 4,500 residents.

It’s 2010-2011 budget is $34.4 million.

Earnest said the city has figured out a way to pay for the fairgrounds without it affecting the city’s general fund and “without having the taxpayer pay one dime for this.

“We have a Triple-A bond rating,” he said. “We will borrow money as partial payment for it. There is going to be a loan back from the state to pay for part of it, and there is somebody who wants to prepay a lease for the racetrack. These are thoroughbred race people who know what they’re talking about. A long-term prepaid lease that will take care of the rest of it.”

Del Mar Councilman Carl Hilliard said the group of horsemen would come in to lease the track for 55 years but would not displace the Del Mar Thoroughbred Club.

Fairboard President Nussbaum said the property is worth far more than the $120 million being talked about and said he has heard figures of as much as $800 million to $1 billion.

The mayor said the $120 million price tag is a fair price in the opinion of the city and the governor’s office. He said the value of the land is diminished because of its proximity to wetlands.

The state did an appraisal of the property but did not share it with the city. When Del Mar offered $120 million, the governor’s office agreed, Earnest said.

Although negotiations have been going on behind closed doors for the past several months, the mayor said public meetings will now be held to get input.

“Stay tuned,” he said. "We got a lot to talk about in the coming weeks.”

[Igeteven]

I just heard Del Mar is 56 million in outstanding debts, so lets see

$120 million and take over the debts

$56 million in debts

total 176 million, I think Del Mar is worth at least 250 million. That is rock bottom low.

Now the State will want to know why it sold so cheap. Here comes the politicians wanting to know why

[LuckyDuck]

that tells me, the track had debt of 200 million plus.

Now your saying 56 million in debt.. That's a pretty big swing from last nights number