There’s a story, possibly apocryphal, that a famous author offered the following as a graduation speech, then walked off the stage:
Things are bad.
They will not get better.
They are only going to get worse.
And there’s nothing you can do about it.
That more or less sums up the proposed fifty-five year lease of the Orange County Fairgrounds to Facilities Management West (FMW), except there is something you can do. Get over to Costa Mesa City Hall at 5:30 pm this afternoon, where the Costa Mesa City Council will be meeting as the Orange County Fairgrounds Authority to consider the lease.
The Lease is Bad!
First, the positives:
- The lease requires that FMW continue to maintain the Centennial Farm, Youth Expo, equestrian center and an annual fair, though the exhibit listing these required operations states “NOTE: THIS EXHIBIT AND ITS ATTACHMENTS ARE STILL UNDER REVIEW AND NEGOTIATION” (Exhibit H).
- FMW would have to maintain certain community uses, which are “still under negotiation”.
- Though FMW could resize and relocate most uses at will, FMW would have to get the approval of the Orange County Fairgrounds Authority to reduce the size of the equestrian center or Centennial Farm, “which shall not be unreasonably withheld” (Article 6).
- FMW would make a $6 to $8 million investment to repair and improve the property, though “Tenant makes no more specific representation and warranty about the actual time frame for making such investment, the actual amount of the investment and the exact use for which such investment shall be made..” (Article 11)
- FMW would have to comply with the City’s historic preservation code (Article 11), although the code only applies to properties that are on a special list of properties whose owners agreed to the listing—in other words, none of the historic Santa Ana Army Air Base structures or any other historic resources on the fairgrounds, and since FMW can demolish structures less than 5,000 square feet in area at will, we can kiss the remaining SAAAB structures good bye.
- If you like billboards, the one on the fairgrounds property will apparently be staying (Article 13), unlike the remains of SAAAB.
- OFCA/Costa Mesa will get a revenue stream (Article 3), though it will have to be supported by more and larger events at the fairgrounds, replacing smaller scale, community-oriented events.
Before going further, it must be said that all statements are based on a draft lease made available to the public at 6 pm on Thursday, August 19. (LINK) Several of the exhibits with key information are not yet available, and over half a dozen important items are shown as “under negotiation”. You gotta wonder how any responsible City Council would even consider voting on a fifty-five year contract that’s still being negotiated less than twenty four hours before the vote. Is anyone really going to take the time to look at all the ramifications? What happened to that promise to make the lease available to the City Council and the general public well in advance of the final vote? Guess it’s the same thing that happened to that promise about transparency and accountability the City Council made last winter.
Speaking of which, don’t expect much accountability in the future, either. The Orange County Fairgrounds Authority, which is technically a separate governing body that will own the land but in actuality the Costa Mesa City Council, will meet once a year to review FMW’s business plan. Under Article 7 of the lease,
Landlord may make suggestions and give advice …[but]… Tenant shall have no obligation to make any changes based upon any suggestions or advice received by Landlord as to any part of the Annual Business Plan [except regarding the adequate provision of the required uses noted above, which are still] “under review and negotiation”.
Existing activities have been estimated to support about a $30 million value for the Fairgrounds. (See Rigonomics, June 2009) Since OCFA will pay $96 million for the fairgrounds and get an additional revenue stream while FMW also makes a profit, the business plan will have to include some pretty ambitious additional activities. And lots of ‘em.
So if FMW decides to cash in on the big money in raves, we’ll have raves. If FMW decides there’s money in a gangsta rap marathon or ultimate fighting bouts, we’ll have those, or a combination thereof. If it generates cash, it’ll happen at the fairgrounds. And if you thought prices for food, parking and admission were high at the fair this year, just wait.
When there’s noise, trash, and excess traffic in the neighborhoods, residents will have to save up their comments for the annual meeting. If event booking schedules result in gridlock for miles around, inconvenienced motorists can save their comments for the annual meeting. Not that it matters, since FMW “shall have no obligation to make any changes”.
And don’t look to the City of Costa Mesa to adopt any new ordinances to address currently unforeseen problems at the fairgrounds. If new regulations cut into FMW’s profits, OCFA would have to reimburse FMW (Article 26).
At least FMW would have to get permission from OCFA before subjecting OCFA’s “fee estate and interest in the Premises…to the lien of any financing or mortgage sought or obtained by Tenant”(Article 18). But how many landlords do you know who’d let a tenant subject their property to a lien?
FMW would also have to get OCFA’s approval to sell, assign or transfer its leasehold interest, with approval “not to be unreasonably withheld”. At the same time, FMW would have the right to sublet and subcontract at will (Article 15).
The need to garner approval cuts both ways in the lease. OCFA would have to get FMW’s approval to sell or assign any part of its interest in the fairgrounds property (Article 15). OCFA would also have to get FMW’s permission to alter debt service to be paid under the note to the State (Article 5).
The Lease is Not Going to Get Any Better!
As time goes on, if problems in the lease are causing problems for vendors or neighbors, the lease could be amended by mutual agreement of OCFA and FMW. But we can’t count on that to solve any local problems. Ken Fait, an FMW partner, stated at “I want all the money” at the June 22, 2010 OCFA meeting, so FMW would be unlikely to agree to any changes in the lease that might reduce their ability to get “all the money”. Plus, as noted above, if it costs FMW, OCFA must pay.
The Lease is Only Going To Get Worse!
As it stands right now, the lease could be amended by a majority of OCFA, i.e. the Costa Mesa City Council. Remember, Jim Righeimer himself said:
All it takes is three votes on the City Council … let’s just say it would be too tempting for the landowner, over time, to stack the City Council their way.
And as columnist Frank Mickadeit quoted Council Member Gary Monahan (October 21,2009), “anybody with a lot of savvy could get into a council race with a lot of money and get three seats.”
It will be likely that FMW will lobby hard for changes to the lease that are to their advantage, though not the public’s. Not only that, FMW or their successors would probably throw big money into City Council campaigns, resulting in a Costa Mesa City Council generally lacking in dedication to the community. This would be a problem not only with regards to the fairgrounds but with other community issues as well.
There IS something YOU can do about it!
Attend the OCFA/City Council meeting at 5:30 pmTuesday, August 24, 2010, Costa Mesa City Council Chambers – 77 Fair Drive, Costa Mesa. Contact the Costa Mesa City Council (op2council@ci.costa-mesa.ca.us ; 714-754-5285) This may be your last chance to be heard—for fifty-five years!
The only way you can get people’s attention today is with Twitter, or by texting. Nobody reads anything anymore, let alone a newspaper, a flyer or a blog. We are slowly, but surely, becoming a very ignorant nation. Our reading has been reduced to glancing at an occasional headline, but never reading any further.
During the fair I polled quite a few people, only to discover that most of them didn’t even know the fairgrounds were being sold. Those few that did know were certain that the city was buying the property, and would keep it exactly like it is. They didn’t even realize a lessee was involved. It’s not that people don’t care about this issue, it’s that they simply don’t know about it. To make matters even worse, the negotiations are being done in secret. So much for transparency! When the final documents are signed, the public won’t have a clue as to what is in them.
Before this problem ever gets resolved, the city of Costa Mesa will have made the biggest mess any city has ever made. It will fall on the shoulders of future councils to deal with the fallout, How many people will be willing to run for council when the lawsuits start flying?
And just wait until FMW withholds a payment, ……… it’s going to get ugly!
Booper,
We have had over 11,000 visits to this blog, just this week. People do read blogs!
Bootsie’s just impatient to get the word out even more far and wide – and quickly before 5:30! Do you tweet, Boot?
Yes, readership is down, but many people still read newspapers and other printed sources for information and such sources are sorely needed as only actual paid professionals will get to a real investigation. Witness the Times’ breaking of the corruption in Bell.
We’ve always been a pretty ignorant nation, and it has a strong anti-intellectual bent. Social networking and instatnt communication is just making it worse, as more folks just become more and more interested in the banal trivia of their existence. Twitter is mostly narcissistic crap, and can’t take the place of actual journalism.
Rapscalion.
I do commend the Times for their investigative reporting. However, I believe that Barbara Kogerman started the ball rolling by her entering the race for a seat on the Laguna Hills city council and deserves recognition for getting college students to start the grunt work. She was the catalyst for that compensation expose, not the LA Times.
The Times provided the vast exposure that she could never achieve on her own.
The print media is hurting big time and have lost many of their investigative reporters over the past decade. So while we bloggers try to expose similar abuses, it will take time for the better blogs to see an increase in our following.
We are far from perfect but do our best to provide the news of our communities.
There is a role for the print media while at the same time they recognize our impact and have created their own instant message blogs.
I do recognize the fact that the new communication systems can be used, and probably relatively economically, for campaigning. I also like the blogosphere in the sense that people can exchange perspectives, despite the trolls. However, I am not aware of any bloggers who actually conduct in depth investigations, go out and interview people, scrutinize public records, and look under the rocks. I could be wrong, but so far blogs seem to provide conversation, and little more.
I am not aware of any bloggers who actually conduct in depth investigations, go out and interview people, scrutinize public records, and look under the rocks.
You are saying that underneath this La Femme Wonkita post? Maybe you didn’t read the post you’re commenting on. That would be a shame.
It’s a nice enough piece, Vern, but it’s essentially an analysis of the lease and a couple of quotes. Perhaps it’s not the best example of a blogger doing hard bitten journalistic investigation although, again, it’s well written and I’m glad she wrote it.
Yes, we do read blogs. We also promote blog entries that are relevant (like this one) to our friends, families and neighbors. Just one more observation, you do not need to agree with an author to promote and advance the dialogue.
BREAKING NEWS! The State Department of General Services just put the Fairgrounds back on the block. Bids are due by 9/30/10!
At last nights meeting , “la femme wonkita” was providing documents to the cities attorney, because she had them , and it was just easier for the city council to ask her to give them to the attorney.
The “real’ investigative work is being done on the grass roots level, the print “professionals’ just skim off the top.
What documents, specifically, and how were they obtained? Also, any examples of print “professionals” skimming off of the aggrieved grass roots folks?