Tellers backed in bidding process

Deirdre Newman

An emotional outpouring of support for the Teller family’s operation

of the Orange County Market Place convinced the fair board on

Thursday not to hire an outside consultant to handle the bidding

process for the lease of the high-end swap meet.

The lease expired last April, and the previous bidding process was

nixed because of a controversy that tainted the process. Only one

other company -- Delaware North -- had submitted a bid.

The fair’s Executive Committee recommended hiring an outside

consultant to ensure a fair and objective bidding process to maximize

the fair district’s revenue. But 27 people, comprised of community

members and Market Place vendors, gave a litany of reasons why the

Market Place lease should remain with the Tellers, citing their

top-notch management and generous community involvement. The

committee will now decide how to proceed with the lease process.

Jeff Teller, president of Tel-Phil Enterprises, which runs the

swap meet, was overcome with emotion at the decision.

“It was just nice to see the commitment we’ve made to the

community ... ,” he said breaking off as his eyes welled up with

tears.

His father, Bob Teller, started the swap meet 35 years ago. It has

evolved into a high-caliber operation selling everything from fruits

and vegetables to Rolls Royces.

The process to solicit new bids for the lease has been in limbo

since July, when the fair board rejected the two proposals.

Thursday, speaker after speaker lauded the personal commitment the

Tellers give to the Market Place and the community -- with most

followed by loud applause -- leading one participant to comment that

the discussion had the feel of a pep rally.

“I think when we talk about fairness of process, [it’s] also

fairness to reward the organization that does so much to the

community and gives back so much,” Vanguard University President

Murray Dempster said.

Others questioned whether any other operator would be able to

maintain the level of excellence and financial success the Teller’s

have achieved.

“This is my golden egg, and it’s yours too,” vendor Howard

Anderson said. “You shouldn’t kill the goose that laid the golden

egg.”

Stewart Suchman, Tel Phil’s attorney, suggested the board

negotiate with the Tellers for a new lease before putting it out to

bid, as it has done with other long-term tenants.

And other supporters emphasized the importance of keeping the

Market Place in local hands because it was created by locals.

“It started 35 years ago, and every [weekend], there’s still a

member of the family that started this business walking the

fairgrounds,” vendor Adam Pitale said.

That line of support resonated with fair board member Luis Pulido,

the only board member who commented before the vote.

“Twenty-three years ago, my family did the same thing in Santa

Ana,” Pulido said. “I’m going to think very closely about this

because I’m siding with the Tellers.”

Members of Delaware North attended the meeting but did not voice

their opinion to the board about hiring an outside consultant.

After the meeting, Jeff Flint, a consultant for Delaware North,

said he believes the fair board will eventually reopen the bidding

process for the greater good of the community.

“This fair board has a responsibility to put the Market Place

contract out to bid in a manner that is fair, unbiased and devoid of

politics,” Flint said. “And through that process, they can find out

if they can keep everything that is good about this Market Place,

find out where the operation and community involvement could be even

better and get more revenue and fair market value for the asset the

fair board has.”

The swap meet was last up for bid in 1991, and eight companies

submitted bids. The fair board chose Tel-Phil based on the highest

overall score, not the highest financial return, fair spokeswoman Pam

Highwart said. State law requires that contracts be competitively

bid, Highwart added.

* DEIRDRE NEWMAN covers Costa Mesa. She may be reached at (949)

574-4221 or by e-mail at deirdre.newman@latimes.com.