Sell O.C.’s Fair Site?

Tucked in Tuesday’s massive report on streamlining state government was one suggestion that came as a surprise to officials of the Orange County Fair: The state could make a bundle by selling the fairgrounds in Costa Mesa.

The California Performance Review -- a 2,500-page report compiled by 275 members of a volunteer commission -- concluded that the fair’s 190 acres of state property could fetch as much as $230 million if sold for housing.

Though the land is highly desirable and used only part of the year, the state has never considered selling it, said the report, which used it as an example of “underutilized” state assets.

Fair officials had no idea they’d be singled out, said Becky Bailey-Findley, chief executive of the fair’s governing board, known as the 32nd District Agricultural Assn.

The timing was ironic: The 112th Orange County Fair ended its 21-day run Sunday by breaking attendance records, with 923,211 visitors. And Gov. Arnold Schwarzenegger, who commissioned the report, celebrated his birthday at the fair Friday.

The idea of selling the fairgrounds surfaced in April, when Assemblyman John Campbell (R-Irvine) proposed selling most of the property; the fair could remain on 50 acres in Costa Mesa, while the equestrian, ranch and farm operations could be moved to the former El Toro Marine base. He estimated that a relocation and sale could net as much as $200 million for the state.

At the time, legislators were considering selling other state property to prop up the sagging state budget, including the Los Angeles Coliseum and San Francisco’s Cow Palace.

The idea’s inclusion in the California Performance Review, however, caught Campbell off guard. Though he has discussed the idea with administration officials, he said he didn’t suggest it to the review commission.

“I thought the administration was interested, but I guess this means they’re very interested,” he said.

His proposal has been stalled by opposition from Costa Mesa officials, who view the fair as a part of city history and a source of civic pride. When the idea first surfaced, some Costa Mesa officials and residents argued against removing what has become an educational and recreational asset.

The city has been “emphatically clear” in its opposition to the state relocating the fairgrounds, Costa Mesa City Manager Allan Roeder said Tuesday. “The community has very strong feelings for the fair.”

The performance review suggested the fair property could command the most money by being zoned and approved for new homes. If the property were sold, however, the city would have no interest in rezoning the property to either residential or commercial “to help the state with their budget problems,” Roeder said.

The zoning would remain public open space, he said, reducing its value to a potential buyer. The state has raided the city enough by grabbing property tax revenues, he said.

There would be other hurdles to such a sale.

Money made from the fair goes back into the 32nd Agricultural District, so state law would have to be changed to send the money to the general fund. State law also allows other government departments and nonprofit agencies to bid on the land at less than fair market value for uses including affordable housing, open space, parks or education.

Among the recommendations from the governor’s performance review is to amend state law to eliminate the right of first refusal by non-state agencies and to require that land be sold for fair market value.

Bailey-Findley said the fair would have to investigate whether it would actually save money to relocate and build new facilities at El Toro.

The fair is considering building a 35-acre horse ranch expansion at the former airfield, at a cost of $40 million.

California’s 78 county and local fairs have a rich history.

The first six fairs were established with state support before the Civil War. In 1872, the formation of agricultural fair corporations were authorized by the state; in 1880, the state was divided into 12 agricultural districts to operate fairs, expositions and exhibitions of the state’s resources.

There are now 55 district agricultural associations in California that hold annual events. The fairs include the state fair, the Los Angeles County Fair, the Orange County Fair and the San Diego County Fair.

Of those top four, the Orange County Fair traditionally has had the largest reserve fund. Orange County is unique because it makes money year-round, operating a weekend swap meet called the Orange County Market Place for the remaining 48 weeks of the year.

County fairs attract about 10 million visitors every year, according to the California Department of Food and Agriculture.

The quandary over whether to sell the fairgrounds could be duplicated in other parts of the state if the Costa Mesa property eventually is cleared for sale. Most of the 55 district agricultural districts hold activities on state property owned by the California Department of Food and Agriculture. Other fairs are held on county land or on leased property.