COSTA MESA : Deadline Extended on Swap Meet Bids

The Orange County Fair Board has extended the deadline a month on the submission of bids for running the Orange County Marketplace swap meet.

The board made its decision after considering questions posed Thursday by merchants, residents and companies interested in operating the weekend meet at the fairgrounds. The current lease, held by Tel-Phil Enterprises of Newport Beach for the last 21 years, will expire in April.

Attorney Thomas R. Malcolm, who represents Tel-Phil, was one of several people to ask the board to extend the deadline because of concerns about a document issued last month that sets out rules for the new swap meet operator.

Malcolm told the board that several provisions in the document essentially make the board and district the owners and operators of the marketplace.

“The attorney (who looked into the provisions) said this type of management authority is violative of the law,” he said.

Among 23 prospective bidders are the Orange County Marketplace Merchants Assn., which claims 1,200 members. Association President Serge Kohan said earlier this year that the merchants had decided to bid for the lease because they were not happy with Tel-Phil’s management of the swap meet. Kohan declined to comment Thursday.

Frank Cole, who lives near the fairgrounds, submitted two pages of residents’ signatures protesting a change in management in the swap meet. He asked the fair board to remember the residents and to work with the city when considering changes to the operation.

“We have no real quarrel with the marketplace. Our quarrel is with the Fair Board,” Cole said. “I don’t think it can be stressed enough that everything you do here affects us in some way.”

The new lease also takes a bigger chunk of the operator’s profit. According to the document, the operator will pay a base rental fee of a minimum of 33% of gross receipts. It also spells out a provision for the operator and district to split net profits.

Interested bidders must submit their proposals by Oct. 7, with the selection process starting shortly afterward, said fair spokeswoman Jill Ann Lloyd. The contract was to have been awarded in December, but that date probably will be pushed back, she said.

Attorney Howard Kuecker, who said he represents three merchants who have been with Orange County Marketplace for 15 years, said the new agreement may force out from 300 to 500 merchants, causing a ripple effect with their employees and suppliers.

“It seems that they will be auctioned off to the highest bidder,” Kuecker said.