Private real estate firm wins bid for O.C. Fairgrounds for $56.5 million [Updated]

The state today took a $56.5-million bid by a private real estate group wanting to purchase the Orange County Fairgrounds, an early test of Gov. Arnold Schwarzenegger's effort to sell state properties to cut the budget gap.

After an auction that lasted less than a minute, Craig Realty Group had the top bid. [Note: An earlier version of this post said the state accepted Craig Realty's bid and the headline said Craig Realty "buys" the fairgrounds. The state is still evaluating all the bids.]

“We see this as an interesting opportunity to enhance something that’s here,” said Steven Craig, president and chief executive of Craig Realty, a commercial real estate firm in Newport Beach. “I’m happy to keep the fair here. We like it that way. But we’d like to find a way to make it financially viable. Maybe a private enterprise approach will work.”

[Updated at 11:24 a.m.: Erin Shaw, a spokeswoman with the state Consumer Services Agency, said the state has taken seven bids under submission, with Craig Realty filing the highest bid at $56.5 million. She said state officials will now do an analysis to determine which bid will be the most financially beneficial for the state. Shaw it could be several weeks before a decision is reached. “We may execute a contract by the spring,” she said.

The top bid was significantly lower than what officials believed the property was worth.]

This morning, officials from the California Department of General Services opened envelopes with starting bids on the 150-acre property, which ranged from $1,000 from Tel Phil Inc. to $55 million from Facilities Management West.

Other initial offers included $17 million from Advanced Real Estate Services, $20 million from Anaheim Sports Holding, $42.5 million from Craig Realty Group and $2 million from the consulting firm Forde & Mollrich.

Orange County and the city of Costa Mesa were the only public entities that bid; their partnership offered $6.5 million.

Representatives for the seven bidders gathered inside a small meeting room in the fairground administration building in Costa Mesa for the 10 a.m. proceeding expected to last 45 minutes, despite heavy opposition from local politicians and activists.

Dozens of protesters gathered outside, holding signs and some riding horses.

"We are absolutely infuriated that the governor has not canceled the sale of our fairgrounds," said Brian Lochrie, a spokesman for the Orange County Fairgrounds Preservation Society.

"Everything's for sale for a price, especially land, but this shouldn't be," said Beth Kelley, a retired schoolteacher from Huntington Beach who keeps a horse at the fairground equestrian center.

Bids will be posted online at www.dgs.ca.gov.

The opposition to the auction doesn't bode well for the proposed sale of such high-profile properties as the Los Angeles Memorial Coliseum, Del Mar racetrack and San Quentin State Prison.

The Cow Palace in Daly City, fairgrounds in Ventura and San Diego and even the site of the state fair in Sacramento were also listed in the governor's May budget proposal as properties the state might unload. The sales were supposed to raise $600 million to $1 billion for the general fund. But legislators balked at most of them, agreeing only to sell the Orange County Fairgrounds, a parcel that includes a concert amphitheater, exhibition halls and an outdoor swap meet.

-- Tony Barboza in Costa Mesa

Comments

[Karl Dahlquist]

Great News....keep selling! The Chinese will buy Hearst Castle for a song.

[RL]

It also contains the motorcycle speedway. where else can you smell the burn of alcohol fueled 500cc superbikes, have dirt splatered all over you as you stand a few feet from the action, see high speed wipeouts AND have your kid run over and get you a beer so you don't miss any action. IT'S WHITE TRASH HEAVEN!! SAVE THE SPEEDWAY!

They even occasionally do drive-in movie night there. A wonderful throwback to a simpler time. (ie drive ins w/o gangs)

Seriously, you do not sell open space in the middle of the urbs....there will be more empty warehouses there in not time. very sad.

[tarwater]

Next we rip up the decking to fuel the boilers.

[Jonathan]

The California state General Fund spends about $235 million every day. This sale of $56.5 million will be spent in about six hours. The taxpayers of the Southland have been fleeced again.

Meanwhile, the $56.5 million sale to developers pales in comparison to the $200 million giveaway in the proposed state budget for the $10,000 tax credits for home buyers. A lot of this money will also go directly to developers.

[peace]

crazy. governments still all the land from the indians and mexicans and there just gunna sell it. i hope there gunna give half to whoever was living on these lands first. capitolism is going to kill the world. please open your hearts and see whats really happending

[Frank]

You have to keep in mind it is a concert venue that the NIMBY surrounding neighbors have essentially shut down with their stupid complaints, just like other similar neighbors have pointlessly limited the times and flight paths of John Wayne Orange County Airport.

I'm sorry, but modern communities have concert venues and airports that don't have to have their flights land and take-off at near vertical angles. Also, it seems like these residents want to have their cake and eat it too. They want to buy cheap properties that have low prices due to the noise, and then restrict the noise of these venues after they move in so as to create a windfall for themselves at the overall public's detriment. It's time the public take back these important venues for the betterment of all (not the unjust enrichment of a few).

[ibsteve2u]

And so it starts...

Everybody better take the kiddies and go visit your state and national parks NOW, for if you haven't noticed the stage has been set to make the exact same decision/extortion process viable nationally.

[Just asking]

I haven't been to the O.C. (or any other) county fair in many years so the sale is not a loss for me, but somehow the whole thing smells off to me. $55 million? LA Times, please follow the money and see who is getting it, or any commission or "finders fee". In short please see if anyone tied to the process (i.e. board members, board members spouses, realtor with ties to the County, anyone), was enriched by it. Something is not right. The Governor's exemption of the EIR for the football stadium in the "City" of Industry showed his colors and I am curious if the high bidders, the ones with the best deal for the state are past donors to the Governor. Just asking.

[tina]

How could the constiutents of O.C. allow this to happen. Wake up people we are the people. The people in office are employed by us.

[Lee B.]

This is idiotic. Govern incompetently, then sell valuable state-owned properties during a recession at fire sale prices to close a tiny fraction of the budget gap. California's not ungovernable; it's being governed badly.

[John G Lusk]

If anyone can make this a viable enterprise without compromising the Fair and it's different unique venues and features it's the Craig Realty Group.

[Cliffhanger7]

I hope Craig Realty is on the level when they say they want to keep it a fairgrounds and keep the OC Fair there. What happens if the fair loses money, though? I hope against hope that we don't see our fairgrounds turned into more ticky-tacky McMansions and drab outlet malls -- yup, just what OC needs more of! SAVE THE FAIR!!

[cletus]

So sad.

[adorn]

Privatizing the public wealth happening right here! That's great!

Saving it for the children, grandchildren and great grandchildren... of the Craig Realty Group!

They'll find a way to turn it into condo's in no time.

so sad

[Greg Godbey]

Sound to good to be true. Sell the property and still keep the fair grounds for the fair.A wealthy housing tract sounds more profitable.If they wanted to keep the fairgrounds should't we just re-fi the property?I mean if the State of California is standing behide it what could go wrong? Way to much I fear. Lets cancel the sale and look for other opportunities.

[Eric Beneker]

Craig realty.....building nice outlets and strip malls everywhere.....bring on the stucco

[Ronald Lapp]

That Republican County deserves what it gets for having voted for Arnold in the first place. They don't want to be so Republican when its in their own back yard. What hypocrites. But then what else is new when it comes to a Republican?

[bill martin]

good have the fair somewhere else we need the money and every year the fair has the same vendors nothing new

[SG in Costa Mesa]

This is really sad. I've only lived in Costa Mesa for three years, but even at that the enormous value of this property to the community and Orange county in general is apparant to me.

Replace it with condos/homes and more shopping malls? Great...that's the last thing any of us need.

[lo9an]

Did Schwarzenegger forget that the budget gap is over $25 BILLION DOLLARS? How will 55 million make any difference whatsoever?

Moreover, the State of California sold an office building, which houses state/government workers for a few million dollars! And now they (California and its taxpayers) pay rent to the LANDLORD, which will end up costing the state more than they received for the sale! WOW, absolute idiocy on the part of the GOP and others who claim that privatization is the ONLY way... yeah, if you are rich and wealthy already!

The time to regulate and tax marijuana has come!

[lo9an]

Did Schwarzenegger forget that the budget gap is over $25 BILLION DOLLARS? How will 55 million make any difference whatsoever?

Moreover, the State of California sold an office building, which houses state/government workers for a few million dollars! And now they (California and its taxpayers) pay rent to the LANDLORD, which will end up costing the state more than they received for the sale! WOW, absolute idiocy on the part of the GOP and others who claim that privatization is the ONLY way... yeah, if you are rich and wealthy already!

The time to regulate and tax marijuana has come!

[Victor Gonzales]

They should sell the beaches too and the freeways. Sell it all and it wont make a difference because they will just spend it on city unions and thier government salaries.

[renee jackson]

Im Sad that you had to sell the Orange County Fairgrounds i have been going to the fairgrounds as long as i can remeber and now i will not get to go to the fair at all i dont like to go to the LA county fair it is not friendly like oc is so i will miss all of the fun me and my family had at oc fair grounds Sincerely Renee

[John Bushman]

Forde & Mollrich?
The Great Park consultants? Hhmmm.
You had to wonder if the Great Park would try and get their mits on this. Maybe a ploy (they knew $2m wasn't going to win) to get on the list and be kept up to date on the proceedings. After all the GP has room for the OC Fair if the bid fails.
I'm just saying...

[Me]

This State and its legislature is so short sighted. I wouldnt be surprised if the annual revenue generated by the fairgrounds and swap meet doesnt exceed the purchase price. Something smells here and Im sure its our legislature. I recommend that the contituents in OC simply boycott the use of the property and let it be known now that we plan on spending our money elsewhere