State rejects all seven bids for O.C. Fairgrounds
The state has rejected all seven bids it received for the Orange County Fairgrounds because they were too low.
In a letter to Gov. Arnold Schwarzenegger on Wednesday, State Department of General Services Acting Director Ronald Diedrich said he was rejecting all the bids because the offers were “not in the best interest of the citizens of California because they do not contain the highest and most certain return for the state.”
In January, the state auctioned off the 150-acre piece of prime property in Costa Mesa to try to chip away at the budget deficit.
The high bid of $56.5 million came from an outlet mall developer, Newport Beach-based Craig Realty and partner Dwight Manley, a former sports agent. Even the winner, however, came in woefully short of the state's expected $96-million to $180-million price tag.
Eric Lamoureux, a spokesman for the general services department, which is charged with selling the fairgrounds and other state assets, said officials are looking at other options, but did not specify if another auction would be held.
“Obviously, what we're seeking here is maximum revenue possible to try to shore up the state's budget,” he said.
[For the record: An earlier version of this post incorrectly said the state expected to receive $9.6 million to $180 million for the property.]
-- Tony Barboza in Orange County
Photo: A Ferris wheel at the Orange County Fairgrounds. Credit: Christine Cotter / Los Angeles Times
9.6 million - 180million is a pretty large spread and $56.5 million is well within those parameters. Why did they deny the bid?
Posted by: guest | March 17, 2010 at 04:30 PM
we dont need another mall!
Posted by: Daniel | March 17, 2010 at 04:38 PM
What a total farce. And a loss of a wonderful resource for the entire community. Shame on the state and the Governor. The property should not be sold at all.
Posted by: Nancy R. | March 17, 2010 at 04:45 PM
Such a shame to lose the fairgrounds
Posted by: Eve | March 17, 2010 at 06:15 PM
LOL!!!
Proof that the housing, and land asset values have been spanked!
How are these institutions (banks, pensions, insurance co.'s, states, etc.) justified in mark-to-make believe valuations that are clearly a foregone conclusion?
We have a decades long messy divorce from our credit addiction. Who will pay alimony and child support?
-the taxpayers (except for civil servants).
Posted by: J Galt | March 17, 2010 at 06:44 PM
Arnold's money did not for OC fair ground, and the citizens of CA own it. It was paid for with tax money, and should never be sold. If they do sell it the citizens should be paid back.
Posted by: YSF Brown | March 17, 2010 at 07:39 PM
The state is sure stupid. If you want to get the best deal, you BUY real estate in a recession. You SELL real estate when it is in a Bubble.
There is no way the state is going to get top dollar in this environment.
It is a sad laugh that they would expect that they would.
Vito
Posted by: uncle_vito | March 17, 2010 at 08:48 PM
“Obviously, what we're seeking here is maximum revenue possible to try to shore up the state's budget,” he said.
What percentage of the State's $20.7 Billion budget gap is $180 million? Less than 1% - this won't "shore up" anything.
Posted by: short cut | March 18, 2010 at 11:13 AM