Many not ready to bid founders farewell

Deirdre Newman

A standing-room-only crowd of vendors and community members packed a

routine hearing Monday to support founders of the long-running Orange

County Market Place.

Monday’s hearing on a draft version of a request for bids from

those hoping to run the swap meet essentially turned into a

referendum between the two bidders who battled unsuccessfully last

year.

On one side is Tel Phil, run by Bob and Jeff Teller, beloved

founders and operators of the market. On the other was Delaware

North, the only company to bid against the Tellers during the last

bidding process, which was aborted.

The goal of the hearing was to take input on the draft version of

the request so it can be refined before its official release in

September. This is the second request that the fair board will have

issued for a lease renewal.

The bidding process was terminated last year after becoming mired

in controversy. To deter discontent from the get-go this time, the

board decided to hold a public meeting on the new request.

But vendors and community members who packed the small meeting

room Monday, with people standing two to three rows deep behind seats

in support of the Tellers, focused on the people rather than the

process. Many of the Teller faithful urged the fair board

subcommittee holding the hearing to give significant weight to the

areas of vendor loyalty, community support and the Tellers’ generous

return policy in the final request for bids.

“This is not, for most people, an esoteric conversation about what

criteria should be included in the [request for bids],” said Marc

Miles of the Orange County Market Place Merchants Assn. “For many,

especially those in this room, it’s their livelihood.”

Many highlighted the Tellers’ community support through Bob’s Old

Fashioned Ice Cream at the Market Place, where charities sell ice

cream to raise money for their organizations.

Debbe Magnuson with Project Cuddle said that when the charity was

close to going under last year, it was able to keep itself afloat and

save more babies’ lives by selling ice cream.

Others said they were apprehensive of a large conglomerate like

Delaware North, based in Buffalo, N.Y., maintaining the Tellers’

concern for the community.

“I can’t imagine how a large conglomeration like Delaware North

would keep the small-town spirit of the Tellers,” Senior Center

Executive Director Aviva Goelman said.

Delaware North representatives brought up concerns with the

request, which included prohibiting swap meet operators within a

25-mile radius from bidding and the amount of experience requested.

“While some of the subcategories deal with outdoor marketplaces, I

think you also want to look at a broader context, where bidders can

demonstrate abilities like audit control and parking controls in

other venues,” Delaware North consultant Jeff Flint said.

Tel Phil attorney Robert Bower argued that it’s imperative to

compare outdoor marketplaces, because that’s what the lease is for.

“I think evidence and experience is extremely important,” Bower

said. “I also think it’s important to compare apples to apples.”

Bidders are scored according to how they rate in certain

categories. The company with the highest score is awarded the bid.

Delaware North would like to see a separate category so bidders

can propose setting up an extra fund for improvement to the

Fairgrounds’ infrastructure, Flint said. The company’s contract with

the Asilomar State Beach and Conference Grounds in Pacific Grove has

such a fund, Flint said.

Delaware North is frustrated with the maximum score bidders can

get for the amount of swap meet revenue they can offer the fair,

which is capped at 40% in the request, Flint said.

Bower said the cap is there to deter companies from making extreme

offers and then trying to renegotiate once selected.

“It’s important you understand the cap does go to the fact that it

has to be the highest responsible bid [chosen],” Bower said.

Jeff Teller said he was again blown away by the torrent of support

for his family.

“I was overwhelmed and have been by the support my family has had

since [the lease-renewal process] started,” he said. “I look forward

to turning the page, starting a new chapter and getting back to the

business we created 35 years ago.”

The next step in the lease-renewal process is another public

hearing on the tentative request for bids at the fair board’s Aug. 26

meeting. The term of the lease for land housing the swap meet is for

five years, starting Jan. 1, 2005 with an option by the fair to

extend it for five more years.

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

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